[Congressional Record Volume 149, Number 109 (Tuesday, July 22, 2003)]
[Senate]
[Pages S9710-S9737]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CHAFEE:
  S. 1437. A bill to expand the Federal tax refund intercept program to 
cover children who are not minors; to the Committee on Finance.
  Mr. CHAFEE. Mr. President, I am pleased to be introducing the Child 
Support Fairness and Tax Refund Interception Act of 2003 today.
  The Child Support Fairness and Tax Refund Interception Act of 2003 
closes a loophole in current Federal statute by expanding the 
eligibility of one of the most effective means of enforcing child 
support orders--that of intercepting the Federal tax refunds of parents 
who are delinquent in paying their court-ordered financial support for 
their children.
  Under current law, eligibility for the Federal tax refund offset 
program is limited to cases involving minors, parents on public 
assistance, or adult children who are disabled. Custodial parents of 
adult, non-disabled children are not assisted under the IRS tax refund 
intercept program, and in many cases, they must work multiple jobs in 
order to make ends meet. Some of these parents have gone into debt to 
put their college-age children through school.
  The legislation I am introducing today will address this inequity by 
expanding the eligibility of the Federal tax refund offset program to 
cover parents of all children, regardless of whether the child is 
disabled or a minor. This legislation will not create a cause of action 
for a custodial parent to seek additional child support. It will merely 
assist the custodial parent in recovering debt that is owed for a level 
of child support that was determined by a court.
  Improving our child support enforcement programs is an issue that 
should be of concern to us all as it remains a serious problem in the 
United States. According to the most recent government statistics, 
there are approximately seventeen million active cases in which a child 
support order requires a noncustodial parent to contribute to the 
support of his or her child. Of the almost $25 billion owed in 2001, 
only $14 billion has been collected. In 1998, only 23 percent of 
children entitled to child support through our public system received 
some form of payment, despite Federal and State efforts. Similar 
shortfalls in previous years bring the combined delinquency total to 
approximately $88 billion. We can fix this injustice in our federal tax 
refund offset program by helping some of our most needy constituents 
receive the financial assistance they are owed.
  While previous Administrations have been somewhat successful in using 
tax refunds as a tool to collect child support payments, more needs to 
be done. The IRS tax refund interception program has only collected 
one-third of tardy child support payments. The Child Support Fairness 
and Tax Refund Interception Act of 2003 will remove the current barrier 
to fulfilling an individual's obligation to pay child support, while 
helping to provide for the future of our nation's children.
  I urge my colleagues to join me in supporting this important 
legislation, and ask unanimous consent that the text of legislation be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1437

       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 ``Child Support Fairness and 
     Tax Refund Interception Act of 2003''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Enforcing child support orders remains a serious 
     problem in the United States. There are approximately 
     17,100,000 active cases in which a child support order 
     requires a noncustodial parent to contribute to the support 
     of his or her child. Of the $24,700,000,000 owed in 2001 
     pursuant to such orders, $14,200,000,000, or 57 percent, has 
     been collected.
       (2) It is an injustice for the Federal Government to issue 
     tax refunds to a deadbeat spouse while a custodial parent has 
     to work 2 or 3 jobs to compensate for the shortfall in 
     providing for his or her children.
       (3) The Internal Revenue Service (IRS) program to intercept 
     the tax refunds of parents who owe child support arrears has 
     been successful in collecting a tenth of such arrears.
       (4) Congress has periodically expanded eligibility for the 
     IRS tax refund intercept program. Initially, the program was 
     limited to intercepting Federal tax refunds owed to parents 
     on public assistance. In 1984, Congress expanded the program 
     to cover parents not on public assistance. Finally, the 
     Omnibus Budget Reconciliation Act of 1990 made the program 
     permanent and expanded the program to cover parents of adult 
     children who are disabled.
       (5) The injustice to the custodial parent is the same 
     regardless of whether the child is disabled, non-disabled, a 
     minor, or an adult, so long as the child support obligation 
     is provided for by a court or administrative order. It is 
     common for parents to help their adult children finance a 
     college education, a wedding, or a first home. Some parents 
     cannot afford to provide such help because they are 
     recovering from debt incurred to cover expenses that would 
     have been covered if the parent had been paid the child 
     support owed in a timely manner.
       (6) This Act addresses such injustices by expanding the IRS 
     tax refund intercept program to cover parents of all adult 
     children, regardless of whether the child is disabled.
       (7) This Act does not create a cause of action for a 
     custodial parent to seek additional child support. This Act 
     merely helps the custodial parent recover debt owed for a 
     level of child support that was set by a court after both 
     sides had the opportunity to present arguments about the 
     proper amount of child support.

     SEC. 3. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-
                   DUE CHILD SUPPORT ON BEHALF OF CHILDREN WHO ARE 
                   NOT MINORS.

       Section 464 of the Social Security Act (42 U.S.C. 664) is 
     amended--
       (1) in subsection (a)(2)(A), by striking ``(as that term is 
     defined for purposes of this paragraph under subsection 
     (c))''; and
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking ``(1) Except as provided in paragraph (2), 
     as used in'' and inserting ``In''; and
       (ii) by inserting ``(whether or not a minor)'' after ``a 
     child'' each place it appears; and
       (B) by striking paragraphs (2) and (3).
                                 ______
                                 
      By Ms. CANTWELL (for herself, Mr. Inouye, and Mrs. Murray):
  S. 1438. A bill to provide for equitable compensation of the Spokane 
Tribe of Indians of the Spokane Reservation in settlement of claims the 
Tribe concerning the contribution of the Tribe to the production of 
hydropower by the Grand Coulee Dam, and for other purposes; to the 
Committee on Indian Affairs.
  Ms. CANTWELL. Mr. President, I rise today to introduce legislation 
with my friend and colleague Senator Murray, as well as the vice 
chairman of the Indian Affairs Committee Senator Inouye, that provides 
an equitable settlement to the Spokane Tribe of Indians. This bill 
addresses the decision of the Federal Government to take lands 
belonging to the tribe in order to construct the Grand Coulee Dam on 
the Columbia River.
  For more than half a century, the Grand Coulee Project has made an 
extraordinary contribution to this Nation. It helped pull the economy 
out of the Great Depression. It provided the electricity that produced 
aluminum required for airplanes and weapons that ensured our national 
security. The project continues to produce enormous revenues for the 
United States, it is a key component of the agricultural economy in 
eastern Washington, and plays a pivotal role in the electric systems 
serving the entire western United States.

[[Page S9711]]

  However, these benefits have come at a direct cost to tribal property 
that became inundated when the U.S. Government built the Grand Coulee 
Dam. Before dam construction, the free flowing Columbia River supported 
robust and plentiful salmon runs and provided for virtually all of the 
subsistence needs of the Spokane Tribe. After construction, the 
Columbia and its Spokane river tributary flooded tribal communities, 
schools, and roads, and the remaining stagnant water continues to erode 
reservation lands today.
  The legislation Senators Inouye, Murray, and I are introducing today 
is similar to P.L. 103-436, which was enacted in 1994 to provide the 
neighboring Confederated Colville Tribes. This bill would provide the 
Spokane Tribe of Indians' with compensation that is directly 
proportional to the settlement afforded the Colville Tribes. 
Specifically, the Spokane Tribe would receive 39.4 percent of the past 
and future compensation awarded the Colville Tribes pursuant to the 
1994 legislation. This percentage is based on the proportion of tribal 
lands impacted after the Federal Government built the Grand Coulee 
Project.
  The United States has a trust responsibility to maintain and protect 
the integrity of all tribal lands within its borders. When Federal 
actions physically or economically impact harm, our Nation has a legal 
responsibility to address and compensate the damaged parties. 
Unfortunately, despite countless efforts, half a century has passed 
without justice to the Spokane people.
  The time has come for the Federal Government to finally meet is 
fiduciary responsibility for converting the Spokane tribe's resources 
to its own benefit. Senators Inouye, Murray, and I believe that the 
legislation we are proposing today will finally bring a fair and 
honorable closure to these matters. We are pleased to see similar 
bipartisan legislation was introduced earlier this year in the U.S. 
House of Representatives.
  I look forward to working with the Indian Affairs Committee and my 
Senate colleagues as this legislation proceeds through the Congress.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no obligation, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1438

       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 `Spokane Tribe of Indians of 
     the Spokane Reservation Grand Coulee Dam Equitable 
     Compensation Settlement Act.'

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) From 1927 to 1931, at the direction of Congress, the 
     Corps of Engineers investigated the Columbia River and its 
     tributaries to determine sites at which power could be 
     produced at low cost.
       (2) The Corps of Engineers--
       (A) identified a number of sites, including the site at 
     which the Grand Coulee Dam is located; and
       (B) recommended that power development at those sites be 
     performed by local governmental authorities or private 
     utilities under the Federal Power Act (16 U.S.C. 791 et 
     seq.).
       (3) Under section 10(e) of that Act (16 U.S.C. 803(e)), a 
     licensee is required to compensate an Indian tribe for the 
     use of land under the jurisdiction of the Indian tribe.
       (4) In August 1933, the Columbia Basin Commission, an 
     agency of the State of Washington, received a preliminary 
     permit from the Federal Power Commission for water power 
     development at the Grand Coulee site.
       (5) In the mid-1930's, the Federal Government, which is not 
     subject to the Federal Power Act (16 U.S.C. 791a et seq.)--
       (A) federalized the Grand Coulee Dam project; and
       (B) began construction of the Grand Coulee Dam.
       (6) At the time at which the Grand Coulee Dam project was 
     federalized, the Federal Government recognized that the 
     Spokane Tribe and the Confederated Tribes of the Colville 
     Reservation had compensable interests in the Grand Coulee Dam 
     project, including compensation for--
       (A) the development of hydropower;
       (B) the extinguishment of a salmon fishery on which the 
     Spokane Tribe was almost completely financially dependent; 
     and
       (C) the inundation of land with loss of potential power 
     sites previously identified by the Spokane Tribe.
       (7) In the Act of June 29, 1940, Congress--
       (A) in the first section (16 U.S.C. 835d) granted to the 
     United States--
       (i) all rights of Indian tribes in land of the Spokane 
     Tribe and Colville Indian Reservations that were required for 
     the Grand Coulee Dam project; and
       (ii) various rights-of-way over other land under the 
     jurisdiction of Indian tribes that were required in 
     connection with the project; and
       (B) in section 2 (16 U.S.C. 835e) provided that 
     compensation for the land and rights-of-way was to be 
     determined by the Secretary of the Interior in such amounts 
     as the Secretary determined to be just and equitable.
       (8) In furtherance of that Act, the Secretary of the 
     Interior paid--
       (A) to the Spokane Tribe, $4,700; and
       (B) to the Confederated Tribes of the Colville Reservation, 
     $63,000.
       (9) In 1994, following 43 years of litigation before the 
     Indian Claims Commission, the United States Court of Federal 
     Claims, and the United States Court of Appeals for the 
     Federal Circuit, Congress ratified an agreement between the 
     Confederated Tribes of the Colville Reservation and the 
     United States that provided for damages and annual payments 
     of $15,250,000 in perpetuity, adjusted annually, based on 
     revenues from the sale of electric power from the Grand 
     Coulee Dam project and transmission of that power by the 
     Bonneville Power Administration.
       (10) In legal opinions issued by the Office of the 
     Solicitor of the Department of the Interior, a Task Force 
     Study conducted from 1976 to 1980 ordered by the Committee on 
     Appropriations of the Senate, and hearings before Congress at 
     the time at which the Confederated Tribes of the Colville 
     Reservation Grand Coulee Dam Settlement Act (Public Law 103-
     436; 108 Stat. 4577) was enacted, it has repeatedly been 
     recognized that--
       (A) the Spokane Tribe suffered damages similar to those 
     suffered by, and had a case legally comparable to that of, 
     the Confederated Tribes of the Colville Reservation; but
       (B) the 5-year statute of limitations under the Act of 
     August 13, 1946 (25 U.S.C. 70 et seq.) precluded the Spokane 
     Tribe from bringing a civil action for damages under that 
     Act.
       (11) The inability of the Spokane Tribe to bring a civil 
     action before the Indian Claims Commission can be attributed 
     to a combination of factors, including--
       (A) the failure of the Bureau of Indian Affairs to carry 
     out its advisory responsibilities in accordance with that 
     Act; and
       (B) an attempt by the Commissioner of Indian Affairs to 
     impose improper requirements on claims attorneys retained by 
     Indian tribes, which caused delays in retention of counsel 
     and full investigation of the potential claims of the Spokane 
     Tribe.
       (12) As a consequence of construction of the Grand Coulee 
     Dam project, the Spokane Tribe--
       (A) has suffered the loss of--
       (i) the salmon fishery on which the Spokane Tribe was 
     dependent;
       (ii) identified hydropower sites that the Spokane Tribe 
     could have developed; and
       (ii) hydropower revenues that the Spokane Tribe would have 
     received under the Federal Power Act (16 U.S.C. 791a et seq.) 
     had the project not been federalized; and
       (B) continues to lose hydropower revenues that the Federal 
     Government recognized were owed to the Spokane Tribe at the 
     time at which the project was constructed.
       (13) More than 39 percent of the land owned by Indian 
     tribes or members of Indian tribes that was used for the 
     Grand Coulee Dam project was land of the Spokane Tribe.

     SEC. 3. STATEMENT OF PURPOSE.

       The purpose of this Act is to provide fair and equitable 
     compensation to the Spokane Tribe, using the same 
     proportional basis as was used in providing compensation to 
     the Confederated Tribes of the Colville Reservation, for the 
     losses suffered as a result of the construction and operation 
     of the Grand Coulee Dam project.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (2) Confederated Tribes Act.--The term ``Confederated 
     Tribes Act'' means the Confederated Tribes of the Colville 
     Reservation Grand Coulee Dam Settlement Act (Public Law 103-
     436; 108 Stat. 4577).
       (3) Fund Account.--The term ``Fund Account means the 
     Spokane Tribe of Indians Settlement Fund Account established 
     under section 5(a).
       (4) Spokane tribe.--The term ``Spokane Tribe'' means the 
     Spokane Tribe of Indians of the Spokane Reservation, 
     Washington.

     SEC. 5. SETTLEMENT FUND ACCOUNT.

       (a) Establishment of Account.--There is established in the 
     Treasury an interest bearing account to be known as the 
     ``Spokane Tribe of Indians Settlement Fund Account''.
       (b) Deposit of Amounts.--
       (1) Initial deposit.--On the date on which funds are made 
     available to carry out this Act, the Secretary shall deposit 
     in the Fund Account, as payment and satisfaction of the claim 
     of the Spokane Tribe for use of land of the Spokane Tribe for 
     generation of hydropower for the period beginning on June 29, 
     1940, and ending on November 2, 1994, an amount that is equal 
     to 39.4 percent of the amount paid to the Confederated Tribes 
     of the Colville Reservation under section 5(a) of the 
     Confederated Tribes Act, adjusted to reflect the change, 
     during the period beginning on the date on which the payment 
     described in subparagraph (A) was made to the Confederated 
     Tribes of the Colville Reservation and ending on the date of 
     enactment of this Act, in Consumer Price Index for all urban 
     consumers published by the Department of Labor.

[[Page S9712]]

       (2) Subsequent deposits.--On September 30 of the first 
     fiscal year that begins after the date of enactment of this 
     Act, and on September 30 of each of the 5 fiscal years 
     thereafter, the Secretary shall deposit in the Fund Account 
     an amount that is equal to 7.88 percent of the amount 
     authorized to be paid to the Confederated Tribes of the 
     Colville Reservation under section 5(b) of the Confederated 
     Tribes Act through the end of the fiscal year during which 
     this Act is enacted, adjusted to reflect the change, during 
     the period beginning on the date on which the payment to the 
     Confederated Tribes of the Colville Reservation was first 
     made and ending on the date of enactment of this Act, in the 
     Consumer Price Index for all urban consumers published by the 
     Department of Labor.
       (c) Annual Payments.--On September 1 of the first fiscal 
     year after the date of enactment of this Act, and annually 
     thereafter, the Secretary shall pay to the Spokane Tribe an 
     amount that is equal to 39.4 percent of the annual payment 
     authorized to be paid to the Confederated Tribes of the 
     Colville Reservation under section 5(b) of the Confederated 
     Tribes Act for the fiscal year.

     SEC. 6. USE AND TREATMENT OF SETTLEMENT FUNDS.

       (a) Transfer of Funds to Spokane Tribe.--
       (1) Initial transfer.--Not later than 60 days after the 
     date on which the Secretary receives from the Spokane 
     Business Council written notice of the adoption of the 
     Spokane Business Council of a resolution requesting that the 
     Secretary execute the transfer of settlement funds described 
     in section 5(a), the Secretary shall transfer all or a 
     portion of the settlement funds, as appropriate, to the 
     Spokane Business Council.
       (2) Subsequent transfers.--If not all funds described in 
     section 5(a) are transferred to the Spokane Business Council 
     under an initial transfer request described in paragraph (1), 
     the Spokane Business Council may make subsequent requests 
     for, and the Secretary of the Treasury may execute subsequent 
     transfers of, those funds.
       (b) Use of Initial Payment Funds.--Of the settlement funds 
     described in subsections (a) and (b) of section 5--
       (1) 25 percent shall be--
       (A) reserved by the Spokane Business Council; and
       (B) used for discretionary purposes of general benefit to 
     all members of the Spokane Tribe; and
       (2) 75 percent shall be used by the Spokane Business 
     Council to carry out--
       (A) a resource development program;
       (B) a credit program;
       (C) a scholarship program; or
       (D) a reserve, investment, and economic development 
     program.
       (c) Use of Annual Payment Funds.--Annual payments made to 
     the Spokane Tribe under section 5(c) may be used or invested 
     by the Spokane Tribe in the same manner and for the same 
     purposes as other tribal government funds.
       (d) Approval by Secretary.--Notwithstanding any other 
     provision of law--
       (1) the approval of the Secretary of the Treasury or the 
     Secretary of the Interior for any payment, distribution, or 
     use of the principal, interest, or income generated by any 
     settlement funds transferred or paid to the Spokane Tribe 
     under this Act shall not be required; and
       (2) the Secretary of the Treasury and the Secretary of the 
     Interior shall have no trust responsibility for the 
     investment, supervision, administration, or expenditure of 
     those funds after the date on which the funds are transferred 
     to or paid to the Spokane Tribe.
       (e) Treatment of Funds for Certain Purposes.--The payments 
     and distributions of any portion of the principal, interest, 
     and income generated by the settlement funds described in 
     section 5 shall be treated in the same manner as payments or 
     distributions under section 6 of the Saginaw Chippewa Indian 
     Tribe of Michigan Distribution of Judgment Funds Act (Public 
     Law 99-346; 100 Stat. 677).
       (f) Tribal Audit.--After the date on which the settlement 
     funds described in section 5 are transferred or paid to the 
     Spokane Tribe, the funds--
       (1) shall be considered to be Spokane Tribe governmental 
     funds; and
       (2) shall be subject to an annual tribal governmental 
     audit.

     SEC. 7. SATISFACTION OF CLAIMS.

       Payment by the Secretary under section 5 constitutes full 
     satisfaction of the claim of Spokane Tribe to a fair share of 
     the annual hydropower revenues generated by the Grand Coulee 
     Dam project from June 29, 1940, through the fiscal year 
     preceding the fiscal year in which this Act is enacted.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
                                 ______
                                 
      By Mr. BUNNING:
  S. 1439. A bill to amend part E of title IV of the Social Security 
Act to reauthorize adoption incentives payments under section 473A of 
that Act and to provide incentives for the adoption of older children; 
to the Committee on Finance.
  Mr. BUNNING. Mr. President, the Adoption Incentive Program has been a 
successful program, which provides States with real incentives to find 
permanent homes for foster children. However, AIP's authorization 
expires on September 30, 2003, and the program needs to be reauthorized 
this year.
  Under current law, States receive incentive payments for increasing 
the number of adoptions from the public foster care system. The amount 
of payments is based on the number of adoptions above a State's 
baseline, which is the highest number of adoptions in a State since 
1997.
  Currently, States receive $4,000 for each foster child adopted above 
the baseline number. The State can also receive $6,000 for each 
adoption above a baseline for children with special needs. While each 
State relies on individual criteria, ``special needs'' can include a 
child's age, ethnicity, disability or having siblings.
  AIP's success cannot be questioned. In fact, according to the 
Congressional Research Service, there was a 61 percent increase in 
adoptions of children from the public foster care system from 1997 to 
2001.
  At the same time, states have earned about $144 million in adoption 
incentives for adoptions from 1998, to 2001. In my State, Kentucky has 
received about $1.6 million in adoption incentives during this time 
period.
  However, it is now time to reauthorize and strengthen the program.
  One of the biggest challenges in the foster care system today is 
finding adoptive homes for older children. In fact, according to the 
Adoption and Foster Care Analysis and Reporting System, AFCARS, which 
is part of the Department of Health and Human Services, once children 
reach the age of 9, their chances of adoption diminish.
  As of 2001, there were over 100,000 American children waiting to be 
adopted. Quit frankly, this is too many children waiting for loving 
homes, regardless of their age. The bill I am introducing continues to 
give States incentives to find homes for these kids, particularly older 
children.
  My bill, the Adoption Incentive Program Reauthorization Act of 2003, 
reauthorizes the program from 2004 to 2008, at $43 million a year.
  The bill continues to give States a payment of $4,000 for every child 
adopted above the State's baseline. Also, the bill requires States to 
establish a separate baseline for adoptions of children over the age of 
9, and will provide a payment of $6,000 for all older children adopted 
above the baseline.
  Children deserve the stability and support of a permanent home and a 
permanent family. The Adoption Incentive Program has already proven 
successful in encouraging states to act aggressively on a foster 
child's behalf. It is now time to strengthen the program for the years 
to come.
  I look forward to working on this issue with the other Members of 
Congress who are interested in adoption and hope we can get the program 
reauthorized soon.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Leahy):
  S. 1440. A bill to reform the Federal Bureau of Investigation; to the 
Committee on the Judiciary.
  Mr. GRASSLEY. Mr. President, I am proud to be reintroducing the FBI 
Reform Act of 2003 with Senator Patrick Leahy. This reform bill is 
designed to address the accountability problems that have plagued the 
FBI for years. For almost a decade, I have been engaged in FBI 
oversight, and during that time, I have seen numerous scandals and 
coverups. I am pleased to see that Director Mueller is committed to 
changing the culture of the FBI. He is making good strides toward 
overcoming past bad policies and procedures at the Bureau. However, 
Congress also has a role to play in this overhaul of the FBI.
  A little over a year ago, a bill similar to this one was approved 
unanimously by the Judiciary Committee. Since then, a number of the 
provisions of that bill were enacted in separate legislation. However, 
some of the most important provisions of that bill--provisions 
protecting whistleblowers, creating a Security Career Program and 
Counterintelligence Polygraph Program, and ending the double standard 
for discipline of senior FBI executives--have yet to be taken up by the 
full Senate. These provisions are needed to maintain America's 
confidence in the FBI.

[[Page S9713]]

  When I was growing up, I was surrounded by a generation that believed 
the FBI could do no wrong. Yet today at a time when we rely on the FBI 
to protect us from acts of catastrophic terrorism that endanger the 
lives of the American people, a time when the need for confidence in 
the FBI is at its greatest, Americans' trust and confidence in the FBI 
has been shaken. Do not get me wrong, the majority of FBI agents and 
especially those who are posted all over the heartland of this country, 
are honorable, hard working Federal servants who are doing a great job 
of protecting us from harm. However, there are a few bad apples that 
must be dealt with because their actions give the Bureau a black eye. 
The spy cases of Robert Hanssen and Chinese espionage in Los Angeles 
have highlighted internal security problems. Retaliation against agents 
like John Roberts, Frank Perry, and Patrick Kiernan, who did their duty 
investigating internal wrongdoing and spoke the truth to Congress, 
highlight continuing cultural hostility to criticism. This bill goes a 
long way to address these systemic problems and shore up trust and 
confidence in the FBI in the wake of these concerns.
  While Congress sometimes follows a hands-off approach to the FBI, the 
Judiciary Committees hearings and other oversight activities over the 
last 2 or 3 years have highlighted the actions that Congress needs to 
take to do its part in reforming the Bureau. The hearings that spurred 
this legislation demonstrated the need to extend adequate whistleblower 
protections to the FBI, enhance the Bureau's internal security program, 
end the double-standard for discipline, and modernize the FBI's 
information technology systems. These and additional management issues 
the committee has explored are reflected in this bill. As the Patriot 
Act has increased the FBI's powers, as the American people have 
increased their reliance on the FBI to stop terrorism, and as we 
continue to increase the FBI's funding, it is time for Congress to take 
action with a more hands-on approach. Let me provide some more detail 
about the most important provisions of the FBI reform bill.
  First, title I of the bill contains much needed protections for FBI 
whistleblowers. As my colleagues know, I have long held that good 
government requires that the brave men and women who blow the whistle 
on wrongdoing be protected. It is my strong belief that disclosures of 
wrongdoing by whistleblowers are an integral part of our system of 
checks and balances. However, although whistleblowers play a critical 
role in ensuring that waste, fraud, and abuse are brought to light and 
that public health and safety problems are exposed, the same 
whistleblower protection laws that apply to almost all other Federal 
employees do not currently apply to the FBI. In fact, it is a violation 
for FBI agents to report problems to Congress. That restriction leaves 
patriotic, loyal FBI employees with little recourse. This bill will fix 
that problem.
  I truly believe that reform at the FBI will only occur when FBI 
employees feel free to blow the whistle on wrongdoing. Without adequate 
whistleblower protections, I am concerned that agents, such as Coleen 
Rowley and others, who speak out about abuses and problems at the FBI 
will be subject to retaliation. Thus, this bill finally gives FBI 
whistleblowers the same rights and protections that other Federal 
employees currently possess. When this bill is passed, FBI employees 
who are retaliated against for blowing the whistle will be able to 
avail themselves of all the protections afforded by the Whistleblower 
Protection Act.

  In order to enhance internal security at the FBI, title II of the 
bill requires the FBI to establish a career security program and ensure 
that appropriate management tools and resources are devoted to that 
task. Modeled after the Department of Defense Acquisition Career 
Program, security professional career development requirements would 
bring the FBI into line with the other Federal agencies that handle top 
secret intelligence. This bill establishes and defines the Career 
Security Program and sets out the framework for career development and 
training in internal security. With the development of a Career 
Security Program, the FBI can meet the challenges of espionage, 
information technology vulnerability, and the threat of direct 
terrorist attack.
  This bill requires the Attorney General to establish policies and 
procedures for career management of FBI security personnel. It directs 
the Director of the FBI to appoint a Director of Security who would 
chair a security career program board that would advise in the 
management of hiring, training, education, and career development. The 
bill also requires the FBI Director to designate certain positions as 
security positions. The bill requires that career paths to senior 
positions be published, and it ensures that all FBI personnel would 
have the opportunity to acquire the education, training and experience 
needed for senior security positions. Moreover, in order to ensure that 
security professionals gain the stature that special agents enjoy, the 
bill provides that special agents would not have preference for 
security positions and security positions could not be restricted to 
special agents unless the Attorney General makes a special 
determination.
  Furthermore, the bill would direct that education, training, and 
experience requirements be established for each position and that 
before assignment as a manager or a deputy manager of a significant 
security program, a person would have to complete an accredited 
security program management course and have at least 6 years security 
experience, including 2 years in a similar program.
  In addition to the Security Career Program, the bill will also 
enhance security through the creation of an FBI counterintelligence 
polygraph program. The program would consist of the periodic screening 
of employees and contractors who have access to sensitive information 
or restricted data. While the program recognizes the value of polygraph 
screening, it also provides safeguards for those subject to polygraph 
examination. The bill directs that the program have procedures to 
address false positives, ensure quality control, requires that no 
adverse personnel action could be taken solely by reason of 
physiological reaction on an exam without further investigation, and 
provides that employees would have prompt access to unclassified 
reports of their exams that relate to adverse personnel action. Thus, 
title III provides increased security while at the same time protecting 
employee rights.
  Title IV requires the Attorney General to report on the legal 
authority for the FBI's programs and activities. This report will help 
the FBI focus on its most important duty--preventing terrorism--by 
cutting back on the FBI's jurisdiction, which has become cumbersome and 
unwieldy. Currently, the FBI investigates over 300 different Federal 
offenses, which are divided between violent crime, white collar crime, 
organized crime, drugs, national security, and civil rights. In many of 
these areas, there are instances of concurrent or overlapping 
jurisdiction with other Federal law enforcement agencies who specialize 
in investigating these crimes.
  The FBI needs to scale back on the broad range of investigations 
which are duplicated by other Federal and State agencies. The Bureau 
needs to completely jettison some of these areas and in other areas, 
the Bureau could simply take a secondary role, allowing another agency 
to take the lead. In order to assist the FBI in scaling back its 
jurisdiction, this bill directs the Attorney General to report to 
Congress on the legal authority for FBI programs and activities, 
identifying those that have express statutory authority and those that 
do not. The bill also requires the Attorney General to recommend what 
criminal statutes for which he believes the FBI should have 
investigative responsibility.

  Additionally, there exists a gross inequality in the way Senior 
Executive Service, SES, employees of the FBI and rank and file agents 
are disciplined. SES employees are often given a slap on the wrist for 
an infraction, whereas the rank and file agents are often punished to 
the letter of the law. Title V of the bill attempts to address this 
double standard. The bill attempts to address the double standard by 
providing some flexibility in how SES employees can be punished. The 
Senate Judiciary Committee has heard repeatedly that this inflexibility 
is one of the main causes for the inequality in punishment at the FBI. 
Under the current

[[Page S9714]]

system, the minimum suspension that an SES employee can receive is 14 
days. This means that the FBI's management is often left with the 
choice of either an overly harsh penalty or no penalty at all. Often 
they decide not to impose any meaningful disciplinary action.
  In order to attempt to remedy this problem our bill lifts the 14-day 
minimum suspension for SES disciplinary cases to provide for additional 
options in disciplining senior executive employees. Hopefully, this 
change will help to remedy this double standard. In addition, our bill 
would require the Office of Inspector General to submit to the 
Judiciary Committees of both houses, for 5 years, annual reports by the 
FBI Office of Professional Responsibility on its investigations, 
recommendations, and their disposition including an analysis of whether 
any double standard is being employed.
  Finally, title VI of the bill attempts to provide further enhancement 
to security at the Department of Justice as a whole. This title would 
implement recommendations of the Webster Commission for enhancing 
security at the DOJ. It requires the Attorney General to submit a 
report to Congress on the manner by which the Department plans to 
improve protection of security information at the DOJ. Moreover, this 
title authorizes funds to meet the demands for increased security at 
the DOJ. Also, the bill would authorize funds for the DOJ Office of 
Intelligence Policy and Review to help meet the increased demands to 
combat terrorism, process applications to the Foreign Intelligence 
Surveillance Court, participate effectively in counterespionage 
investigations, provide policy analysis and oversight on national 
security matters, and enhance computer and telecommunications security.
  Mr. President, I say to my fellow colleagues, it is time we acted on 
the reforms in this bill. It has been almost a year since this bill 
passed unanimously out of committee. Let's act to reform the FBI and 
help maintain America's trust and confidence in the Bureau.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1440

       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 ``Federal Bureau of 
     Investigation Reform Act of 2003''.

                   TITLE I--WHISTLEBLOWER PROTECTION

     SEC. 101. INCREASING PROTECTIONS FOR FBI WHISTLEBLOWERS.

       Section 2303 of title 5, United States Code, is amended to 
     read as follows:

     ``Sec. 2303. Prohibited personnel practices in the Federal 
       Bureau of Investigation

       ``(a) Definition.--In this section, the term `personnel 
     action' means any action described in clauses (i) through (x) 
     of section 2302(a)(2)(A).
       ``(b) Prohibited Practices.--Any employee of the Federal 
     Bureau of Investigation who has the authority to take, direct 
     others to take, recommend, or approve any personnel action, 
     shall not, with respect to such authority, take or fail to 
     take a personnel action with respect to any employee of the 
     Bureau or because of--
       ``(1) any disclosure of information by the employee to the 
     Attorney General (or an employee designated by the Attorney 
     General for such purpose), a supervisor of the employee, the 
     Inspector General for the Department of Justice, or a Member 
     of Congress that the employee reasonably believes evidences--
       ``(A) a violation of any law, rule, or regulation; or
       ``(B) mismanagement, a gross waste of funds, an abuse of 
     authority, or a substantial and specific danger to public 
     health or safety; or
       ``(2) any disclosure of information by the employee to the 
     Special Counsel of information that the employee reasonably 
     believes evidences--
       ``(A) a violation of any law, rule, or regulation; or
       ``(B) mismanagement, a gross waste of funds, an abuse of 
     authority, or a substantial and specific danger to public 
     health or safety,

     if such disclosure is not specifically prohibited by law and 
     if such information is not specifically required by Executive 
     order to be kept secret in the interest of national defense 
     or the conduct of foreign affairs.
       ``(c) Individual Right of Action.--Chapter 12 of this title 
     shall apply to an employee of the Federal Bureau of 
     Investigation who claims that a personnel action has been 
     taken under this section against the employee as a reprisal 
     for any disclosure of information described in subsection 
     (b)(2).
       ``(d) Regulations.--The Attorney General shall prescribe 
     regulations to ensure that a personnel action under this 
     section shall not be taken against an employee of the Federal 
     Bureau of Investigation as a reprisal for any disclosure of 
     information described in subsection (b)(1), and shall provide 
     for the enforcement of such regulations in a manner 
     consistent with applicable provisions of sections 1214 and 
     1221, and in accordance with the procedures set forth in 
     sections 554 through 557 and 701 through 706.''.

                 TITLE II--FBI SECURITY CAREER PROGRAM

     SEC. 201. SECURITY MANAGEMENT POLICIES.

       The Attorney General shall establish policies and 
     procedures for the effective management (including accession, 
     education, training, and career development) of persons 
     serving in security positions in the Federal Bureau of 
     Investigation.

     SEC. 202. DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION.

       (a) In General.--Subject to the authority, direction, and 
     control of the Attorney General, the Director of the Federal 
     Bureau of Investigation (referred to in this title as the 
     ``Director'') shall carry out all powers, functions, and 
     duties of the Attorney General with respect to the security 
     workforce in the Federal Bureau of Investigation.
       (b) Policy Implementation.--The Director shall ensure that 
     the policies of the Attorney General established in 
     accordance with this Act are implemented throughout the 
     Federal Bureau of Investigation at both the headquarters and 
     field office levels.

     SEC. 203. DIRECTOR OF SECURITY.

       The Director shall appoint a Director of Security, or such 
     other title as the Director may determine, to assist the 
     Director in the performance of the duties of the Director 
     under this Act.

     SEC. 204. SECURITY CAREER PROGRAM BOARDS.

       (a) Establishment.--The Director acting through the 
     Director of Security shall establish a security career 
     program board to advise the Director in managing the hiring, 
     training, education, and career development of personnel in 
     the security workforce of the Federal Bureau of 
     Investigation.
       (b) Composition of Board.--The security career program 
     board shall include--
       (1) the Director of Security (or a representative of the 
     Director of Security);
       (2) the senior officials, as designated by the Director, 
     with responsibility for personnel management;
       (3) the senior officials, as designated by the Director, 
     with responsibility for information management;
       (4) the senior officials, as designated by the Director, 
     with responsibility for training and career development in 
     the various security disciplines; and
       (5) such other senior officials for the intelligence 
     community as the Director may designate.
       (c) Chairperson.--The Director of Security (or a 
     representative of the Director of Security) shall be the 
     chairperson of the board.
       (d) Subordinate Boards.--The Director of Security may 
     establish a subordinate board structure to which functions of 
     the security career program board may be delegated.

     SEC. 205. DESIGNATION OF SECURITY POSITIONS.

       (a) Designation.--The Director shall designate, by 
     regulation, those positions in the Federal Bureau of 
     Investigation that are security positions for purposes of 
     this Act.
       (b) Required Positions.--In designating security positions 
     under subsection (a), the Director shall include, at a 
     minimum, all security-related positions in the areas of--
       (1) personnel security and access control;
       (2) information systems security and information assurance;
       (3) physical security and technical surveillance 
     countermeasures;
       (4) operational, program, and industrial security; and
       (5) information security and classification management.

     SEC. 206. CAREER DEVELOPMENT.

       (a) Career Paths.--The Director shall ensure that 
     appropriate career paths for personnel who wish to pursue 
     careers in security are identified in terms of the education, 
     training, experience, and assignments necessary for career 
     progression to the most senior security positions and shall 
     make available published information on those career paths.
       (b) Limitation on Preference for Special Agents.--
       (1) In general.--Except as provided in the policy 
     established under paragraph (2), the Attorney General shall 
     ensure that no requirement or preference for a Special Agent 
     of the Federal Bureau of Investigation (referred to in this 
     title as a ``Special Agent'') is used in the consideration of 
     persons for security positions.
       (2) Policy.--The Attorney General shall establish a policy 
     that permits a particular security position to be specified 
     as available only to Special Agents, if a determination is 
     made, under criteria specified in the policy, that a Special 
     Agent--
       (A) is required for that position by law;
       (B) is essential for performance of the duties of the 
     position; or
       (C) is necessary for another compelling reason.
       (3) Report.--Not later than December 15 of each year, the 
     Director shall submit to the Attorney General a report that 
     lists--
       (A) each security position that is restricted to Special 
     Agents under the policy established under paragraph (2); and

[[Page S9715]]

       (B) the recommendation of the Director as to whether each 
     restricted security position should remain restricted.
       (c) Opportunities To Qualify.--The Attorney General shall 
     ensure that all personnel, including Special Agents, are 
     provided the opportunity to acquire the education, training, 
     and experience necessary to qualify for senior security 
     positions.
       (d) Best Qualified.--The Attorney General shall ensure that 
     the policies established under this Act are designed to 
     provide for the selection of the best qualified individual 
     for a position, consistent with other applicable law.
       (e) Assignments Policy.--The Attorney General shall 
     establish a policy for assigning Special Agents to security 
     positions that provides for a balance between--
       (1) the need for personnel to serve in career enhancing 
     positions; and
       (2) the need for requiring service in each such position 
     for sufficient time to provide the stability necessary to 
     carry out effectively the duties of the position and to allow 
     for the establishment of responsibility and accountability 
     for actions taken in the position.
       (f) Length of Assignment.--In implementing the policy 
     established under subsection (b)(2), the Director shall 
     provide, as appropriate, for longer lengths of assignments to 
     security positions than assignments to other positions.
       (g) Performance Appraisals.--The Director shall provide an 
     opportunity for review and inclusion of any comments on any 
     appraisal of the performance of a person serving in a 
     security position by a person serving in a security position 
     in the same security career field.
       (h) Balanced Workforce Policy.--In the development of 
     security workforce policies under this Act with respect to 
     any employees or applicants for employment, the Attorney 
     General shall, consistent with the merit system principles 
     set out in paragraphs (1) and (2) of section 2301(b) of title 
     5, United States Code, take into consideration the need to 
     maintain a balanced workforce in which women and members of 
     racial and ethnic minority groups are appropriately 
     represented in Government service.

     SEC. 207. GENERAL EDUCATION, TRAINING, AND EXPERIENCE 
                   REQUIREMENTS.

       (a) In General.--The Director shall establish education, 
     training, and experience requirements for each security 
     position, based on the level of complexity of duties carried 
     out in the position.
       (b) Qualification Requirements.--Before being assigned to a 
     position as a program manager or deputy program manager of a 
     significant security program, a person--
       (1) must have completed a security program management 
     course that is accredited by the Intelligence Community-
     Department of Defense Joint Security Training Consortium or 
     is determined to be comparable by the Director; and
       (2) must have not less than 6 years experience in security, 
     of which not less than 2 years were performed in a similar 
     program office or organization.

     SEC. 208. EDUCATION AND TRAINING PROGRAMS.

       (a) In General.--The Director, in consultation with the 
     Director of Central Intelligence and the Secretary of 
     Defense, shall establish and implement education and training 
     programs for persons serving in security positions in the 
     Federal Bureau of Investigation.
       (b) Other Programs.--The Director shall ensure that 
     programs established under subsection (a) are established and 
     implemented, to the maximum extent practicable, uniformly 
     with the programs of the Intelligence Community and the 
     Department of Defense.

     SEC. 209. OFFICE OF PERSONNEL MANAGEMENT APPROVAL.

       (a) In General.--The Attorney General shall submit any 
     requirement that is established under section 207 to the 
     Director of the Office of Personnel Management for approval.
       (b) Final Approval.--If the Director does not disapprove 
     the requirements established under section 207 within 30 days 
     after the date on which the Director receives the 
     requirement, the requirement is deemed to be approved by the 
     Director of the Office of Personnel Management.

          TITLE III--FBI COUNTERINTELLIGENCE POLYGRAPH PROGRAM

     SEC. 301. DEFINITIONS.

       In this title:
       (1) Polygraph program.--The term ``polygraph program'' 
     means the counterintelligence screening polygraph program 
     established under section 302.
       (2) Polygraph review.--The term ``Polygraph Review'' means 
     the review of the scientific validity of the polygraph for 
     counterintelligence screening purposes conducted by the 
     Committee to Review the Scientific Evidence on the Polygraph 
     of the National Academy of Sciences.

     SEC. 302. ESTABLISHMENT OF PROGRAM.

       Not later than 6 months after the date of enactment of this 
     Act, the Attorney General, in consultation with the Director 
     of the Federal Bureau of Investigation and the Director of 
     Security of the Federal Bureau of Investigation, shall 
     establish a counterintelligence screening polygraph program 
     for the Federal Bureau of Investigation that consists of 
     periodic polygraph examinations of employees, or contractor 
     employees of the Federal Bureau of Investigation who are in 
     positions specified by the Director of the Federal Bureau of 
     Investigation as exceptionally sensitive in order to minimize 
     the potential for unauthorized release or disclosure of 
     exceptionally sensitive information.

     SEC. 303. REGULATIONS.

       (a) In General.--The Attorney General shall prescribe 
     regulations for the polygraph program in accordance with 
     subchapter II of chapter 5 of title 5, United States Code 
     (commonly referred to as the Administrative Procedures Act).
       (b) Considerations.--In prescribing regulations under 
     subsection (a), the Attorney General shall--
       (1) take into account the results of the Polygraph Review; 
     and
       (2) include procedures for--
       (A) identifying and addressing false positive results of 
     polygraph examinations;
       (B) ensuring that adverse personnel actions are not taken 
     against an individual solely by reason of the physiological 
     reaction of the individual to a question in a polygraph 
     examination, unless--
       (i) reasonable efforts are first made independently to 
     determine through alternative means, the veracity of the 
     response of the individual to the question; and
       (ii) the Director of the Federal Bureau of Investigation 
     determines personally that the personnel action is justified;
       (C) ensuring quality assurance and quality control in 
     accordance with any guidance provided by the Department of 
     Defense Polygraph Institute and the Director of Central 
     Intelligence; and
       (D) allowing any employee or contractor who is the subject 
     of a counterintelligence screening polygraph examination 
     under the polygraph program, upon written request, to have 
     prompt access to any unclassified reports regarding an 
     examination that relates to any adverse personnel action 
     taken with respect to the individual.

     SEC. 304. REPORT ON FURTHER ENHANCEMENT OF FBI PERSONNEL 
                   SECURITY PROGRAM.

       (a) In General.--Not later than 9 months after the date of 
     enactment of this Act, the Director of the Federal Bureau of 
     Investigation shall submit to Congress a report setting forth 
     recommendations for any legislative action that the Director 
     considers appropriate in order to enhance the personnel 
     security program of the Federal Bureau of Investigation.
       (b) Polygraph Review Results.--Any recommendation under 
     subsection (a) regarding the use of polygraphs shall take 
     into account the results of the Polygraph Review.

                           TITLE IV--REPORTS

     SEC. 401. REPORT ON LEGAL AUTHORITY FOR FBI PROGRAMS AND 
                   ACTIVITIES.

       (a) In General.--Not later than 9 months after the date of 
     enactment of this Act, the Attorney General shall submit to 
     Congress a report describing the statutory and other legal 
     authority for all programs and activities of the Federal 
     Bureau of Investigation.
       (b) Contents.--The report submitted under subsection (a) 
     shall describe--
       (1) the titles within the United States Code and the 
     statutes for which the Federal Bureau of Investigation 
     exercises investigative responsibility;
       (2) each program or activity of the Federal Bureau of 
     Investigation that has express statutory authority and the 
     statute which provides that authority; and
       (3) each program or activity of the Federal Bureau of 
     Investigation that does not have express statutory authority, 
     and the source of the legal authority for that program or 
     activity.
       (c) Recommendations.--The report submitted under subsection 
     (a) shall recommend whether--
       (1) the Federal Bureau of Investigation should continue to 
     have investigative responsibility for each statute for which 
     the Federal Bureau of Investigation currently has 
     investigative responsibility;
       (2) the legal authority for any program or activity of the 
     Federal Bureau of Investigation should be modified or 
     repealed;
       (3) the Federal Bureau of Investigation should have express 
     statutory authority for any program or activity of the 
     Federal Bureau of Investigation for which the Federal Bureau 
     of Investigation does not currently have express statutory 
     authority; and
       (4) the Federal Bureau of Investigation should--
       (A) have authority for any new program or activity; and
       (B) express statutory authority with respect to any new 
     programs or activities.

                  TITLE V--ENDING THE DOUBLE STANDARD

     SEC. 501. ALLOWING DISCIPLINARY SUSPENSIONS OF MEMBERS OF THE 
                   SENIOR EXECUTIVE SERVICE FOR 14 DAYS OR LESS.

       Section 7542 of title 5, United States Code, is amended by 
     striking ``for more than 14 days''.

     SEC. 502. SUBMITTING OFFICE OF PROFESSIONAL RESPONSIBILITY 
                   REPORTS TO CONGRESSIONAL COMMITTEES.

       (a) In General.--For each of the 5 years following the date 
     of enactment of this Act, the Office of the Inspector General 
     shall submit to the chairperson and ranking member of the 
     Committees on the Judiciary of the Senate and the House of 
     Representatives an annual report to be completed by the 
     Federal Bureau of Investigation, Office of Professional 
     Responsibility and provided to the Inspector General, which 
     sets forth--
       (1) basic information on each investigation completed by 
     that Office;

[[Page S9716]]

       (2) the findings and recommendations of that Office for 
     disciplinary action; and
       (3) what, if any, action was taken by the Director of the 
     Federal Bureau of Investigation or the designee of the 
     Director based on any such recommendation.
       (b) Contents.--In addition to all matters already included 
     in the annual report described in subsection (a), the report 
     shall also include an analysis of--
       (1) whether senior Federal Bureau of Investigation 
     employees and lower level Federal Bureau of Investigation 
     personnel are being disciplined and investigated similarly; 
     and
       (2) whether any double standard is being employed to more 
     senior employees with respect to allegations of misconduct.

       TITLE VI--ENHANCING SECURITY AT THE DEPARTMENT OF JUSTICE

     SEC. 601. REPORT ON THE PROTECTION OF SECURITY AND 
                   INFORMATION AT THE DEPARTMENT OF JUSTICE.

       Not later than 9 months after the date of enactment of this 
     Act, the Attorney General shall submit to Congress a report 
     on the manner in which the Security and Emergency Planning 
     Staff, the Office of Intelligence Policy and Review, and the 
     Chief Information Officer of the Department of Justice plan 
     to improve the protection of security and information at the 
     Department of Justice, including a plan to establish secure 
     electronic communications between the Federal Bureau of 
     Investigation and the Office of Intelligence Policy and 
     Review for processing information related to the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et 
     seq.).

     SEC. 602. AUTHORIZATION FOR INCREASED RESOURCES TO PROTECT 
                   SECURITY AND INFORMATION.

       There are authorized to be appropriated to the Department 
     of Justice for the activities of the Security and Emergency 
     Planning Staff to meet the increased demands to provide 
     personnel, physical, information, technical, and litigation 
     security for the Department of Justice, to prepare for 
     terrorist threats and other emergencies, and to review 
     security compliance by components of the Department of 
     Justice--
       (1) $13,000,000 for fiscal years 2004 and 2005;
       (2) $17,000,000 for fiscal year 2006; and
       (3) $22,000,000 for fiscal year 2007.

     SEC. 603. AUTHORIZATION FOR INCREASED RESOURCES TO FULFILL 
                   NATIONAL SECURITY MISSION OF THE DEPARTMENT OF 
                   JUSTICE.

       There are authorized to be appropriated to the Department 
     of Justice for the activities of the Office of Intelligence 
     Policy and Review to help meet the increased personnel 
     demands to combat terrorism, process applications to the 
     Foreign Intelligence Surveillance Court, participate 
     effectively in counterespionage investigations, provide 
     policy analysis and oversight on national security matters, 
     and enhance secure computer and telecommunications 
     facilities--
       (1) $7,000,000 for fiscal years 2004 and 2005;
       (2) $7,500,000 for fiscal year 2006; and
       (3) $8,000,000 for fiscal year 2007.

  Mr. LEAHY. Mr. President, I am pleased to introduce today, with my 
friend the senior Senator from Iowa, the FBI Reform Act of 2003.
  This legislation stems from the lessons learned during a series of 
Judiciary Committee hearings on oversight of the FBI that I chaired 
beginning in June 2001. The important changes which are being made 
under the FBI's leadership after the September 11 attacks and the new 
powers granted the FBI by the USA PATRIOT Act have resulted in FBI 
reform becoming a pressing matter of national importance.
  Since 9/11 and the anthrax attacks later that fall, we have relied on 
the FBI to detect and prevent acts of catastrophic terrorism that 
endanger the lives of the American people and the institutions of our 
country. The men and women of the FBI are performing this task with 
great professionalism at home and abroad. We have all felt safer as a 
result of the full mobilization of the FBI's dedicated Special Agents, 
its expert support personnel, and its exceptional technical 
capabilities. We owe the men and women of the FBI our thanks.
  For decades the FBI has been an outstanding law enforcement agency 
and a vital member of the United States intelligence community. As our 
hearings and recent events have shown, however, there is room for 
improvement at the FBI. To fully rise to its current challenges, the 
FBI must face and understand the mistakes of the past and make the 
changes needed to ensure that they are not repeated. In meeting the 
international terrorist challenge, the Congress has an opportunity and 
obligation to strengthen the institutional fiber of the FBI based on 
lessons learned from recent problems the Bureau has experienced.
  This view is not mine alone. When FBI Director Mueller testified at 
his confirmation hearings in July 2001, he forthrightly acknowledged 
``that the Bureau's remarkable legacy of service and accomplishment has 
been tarnished by some serious and highly publicized problems in recent 
years. Waco, Ruby Ridge, the FBI lab, Wen Ho Lee, Robert Hanssen and 
the McVeigh documents--these familiar names and events remind us all 
that the FBI is far from perfect and that the next director faces 
significant management and administrative challenges.'' Since then, the 
Judiciary Committee has forged a constructive partnership with Director 
Mueller to get the FBI back on track.
  Congress sometimes has followed a hands-off approach about the FBI. 
But with the FBI's new increased powers, with our increased reliance on 
the Bureau to prevent terrorism, and with the increased funding 
provided by the Congress should come increased scrutiny and 
accountability. Until the Bureau's problems are resolved and new 
challenges overcome, we should be taking a hands-on approach.
  Indeed our hearings and other oversight activities have highlighted 
tangible steps the Congress should take in an FBI Reform bill as part 
of this hands-on approach. Among other things, these hearings 
demonstrated the need to extend whistleblower protection, end the 
double standard for discipline of senior FBI executives, and enhance 
the FBI's internal security program to protect against espionage as 
occurred in the Hanssen case.
  Director Mueller once said it is ``critically important'' that he 
``hears criticisms of the organization . . . in order to improve the 
organization.'' I could not agree more. More than ever, the FBI must be 
open to new ideas, to criticism from within and without, and to facing 
up to and learning from past mistakes.
  During the last Congress, the Judiciary Committee unanimously 
approved the Leahy-Grassley FBI Reform Act of 2001. Unfortunately, our 
bipartisan efforts were stymied by an anonymous Republican hold, which 
prevented the bill from being considered on the floor. While we did 
eventually succeed in passing three of the bill's important reform 
provisions as part of the Department of Justice authorization act, 
other needed reforms were senselessly blocked. These reforms, which 
remain as important and urgent as ever, are included in the bill we 
introduce today.
  There are five key elements of our bill.
  First, it strengthens whistleblower protection for FBI employees and 
protects them from retaliation for reporting wrongdoing.
  Second, it addresses the issue of a double standard for discipline of 
senior executives by eliminating the disparity in authorized 
punishments between Senior Executive Service members and other Federal 
employees.
  Third, it establishes an FBI Counterintelligence Polygraph Program 
for screening personnel in exceptionally sensitive positions with 
specific safeguards.
  Fourth, it establishes an FBI Career Security Program, which would 
bring the FBI into line with other U.S. intelligence agencies that have 
strong career security professional cadres whose skills and leadership 
are dedicated to the protection of agency information, personnel, and 
facilities.
  And fifth, it requires a set of reports that would enable Congress to 
engage the Executive branch in a constructive dialogue building a more 
effective FBI for the future.
  The FBI Reform Act is designed to strengthen the FBI as an 
institution that has a unique role as both a law enforcement agency and 
a member of the intelligence community. As the Judiciary Committee 
continues its oversight work and more is learned about recent FBI 
performance, additional reforms may prove necessary. Especially 
important will be the lessons learned from the attacks of September 11, 
the anthrax attacks, and implementation of the USA PATRIOT Act and 
other counterterrorism measures.
  We need to help the FBI become as effective, as accountable and as 
agile as the American people need it to be to counter the threat of 
terrorism on our shores.
  Strengthening the FBI cannot be accomplished overnight, but with this 
legislation, we take an important step into the FBI's future.
                                 ______
                                 
      By Mr. BIDEN:
  S. 1441. A bill to amend title 18, United States Code, with respect 
to false information regarding certain

[[Page S9717]]

criminal violations concerning hoax reports of biological, chemical, 
and nuclear weapons; to the Committee on the Judiciary.
  Mr. BIDEN. Mr. President, I rise today to introduce ``The Protection 
Against Terrorist Hoaxes Act of 2003.'' This bill would amend Title 18 
of the United States Code to, make it a Federal crime to knowingly make 
a hoax report, involving a biological, chemical, nuclear weapon, or 
other weapon of mass destruction. Likewise, this bill would make it a 
criminal offense to knowingly send such a hoax weapon to another.
  Since the terrorist attacks of September 11, our Nation has witnessed 
a number of terror hoax reports. This in turn has triggered an equally 
large number of reports of suspected biological agents. No part of the 
Nation has been spared, and my home State of Delaware has had several 
hundred reports of possible biological agents. The FBI has reported to 
Congress the staggering statistics involving these bioterrorism hoaxes 
and other reports of suspected biological agents. Prior to September 
11, the FBI had responded to about 100 cases involving potential use of 
``weapons of mass destruction,'' 67 of which involved alleged 
biological weapons. Since mid-September 2001, however, that number has 
increased by 3,000 percent.
  The good news is that most of these reports were either hoaxes or 
reports made by well-meaning people whose suspicions were raised. The 
bad news is that any hoax reports were made in the first place, 
triggering panic on the part of the public, and often forcing the 
Federal, State, and local governments to waste valuable time and 
resources responding to them. In one particularly egregious case, it 
has been reported that an employee of the Connecticut Department of 
Environmental Protection falsely reported to security that he had found 
a yellowish-white powder on his desk with the misspelled label 
``ANTHAX.'' The employee, a 48-year-old solid waste management analyst, 
knew the material was not toxic, it was determined to be coffee 
creamer, but persisted in the false account. Eight hundred State 
employees were evacuated from the building for 2 days while law 
enforcement officials tested the building, at a cost of $1.5 million in 
lost worker's time, another $40,000 in decontamination costs, and an 
undisclosed amount of money spent on rescue and law enforcement. The 
employee is being charged in Federal court--not for the hoax report, 
but for lying to Federal officials after the fact.
  Indeed, the Justice Department reported to Congress that there is a 
gap in the existing Federal law regarding the prosecution of 
bioterrorism hoaxes. That is, while it is a crime to threaten to use, 
for example, anthrax as a weapon against another person, it is not a 
crime to make a hoax anthrax report. Accordingly, the Justice 
Department has repeatedly asked Congress to enact legislation which 
specifically addresses hoaxes which involve purported biological 
substances, as well as chemical, nuclear and other weapons of mass 
destruction. Just this month, the Justice Department stated in 
testimony, ``changes in title 18 to expand the reach of the law to 
prohibit conduct resulting in such hoaxes would provide prosecutors 
with an appropriate tool to respond to these situations.''
  We should answer the call and act now to give law enforcement the 
tools they need to combat these despicable crimes. The Federal interest 
is indisputable, as States and localities are simply not equipped with 
the expertise or resources to evaluate and respond to these hoaxes. A 
comprehensive prohibition on such false reports is necessary to 
preserve scarce and vital Federal resources.
  Accordingly, as Ranking Member of the Judiciary Subcommittee on 
Crime, Corrections and Victims' Rights, I introduce a bill today which 
contains both criminal provisions and civil penalties for the hoax 
reporting of bioterrorism incidents. My bill simply says that if you 
knowingly engage in conduct--such as deliberately sending baking powder 
through the mail to your congressman or calling 911 to falsely report 
the presence of anthrax in a public building--that is likely to create 
the false impression concerning the presence of anthrax, or other 
similar things, that you have committed A Federal offense, punishable 
by up to 5 years in jail. Moreover, such a person may be fined the 
greater of either $10,000 or the amount of money expended by the 
government to respond to the false information. Finally, such a person 
may also be ordered to reimburse the government if costs were incurred 
in responding to the false hoax. Let me be clear--this bill will not 
target innocent mistakes or people who make a report concerning a 
suspected substance; it is aimed, rather, at deliberate hoax reports by 
those who know they are spreading false information.
  I have said many times on the floor of this body that the terrorist 
win if they succeed in sowing seeds of panic into our daily lives. We 
cannot and will not let that happen. Similarly, we will not let these 
hoaxers get away with words and deeds which have the same effect. I 
urge my colleagues to support the Protection Against Terrorist Hoaxes 
Act of 2003.
                                 ______
                                 
      By Ms. LANDRIEU:
  S. 1442. A bill to preserve the political independence of the 
National Women's Business Council; to the Committee on Small Business 
and Entrepreneurship.
  Ms. LANDRIEU. Mr. President, the National Women's Business Council 
provides Congress, the Small Business Administration, and the 
Interagency Committee on Women's Business Enterprise with independent 
advice and policy recommendations to foster women's business ownership. 
Now many of my colleagues may not know a great deal about the Council, 
its members, and what they do. But I can tell you that as a member of 
the Senate Committee on Small Business and Entrepreneurship, the 
Council's advice is very helpful as we develop legislation that affects 
small businesses throughout the country.
  The Council has broad latitude to address nearly any issue that it 
considers to be important for women in business. Whether it relates to 
health insurance, the economy, or fiscal policies, the Council brings a 
unique and valuable perspective. Women make up 46 percent of the 
Nation's executive, administrative and managerial occupations and head 
up 7.1 million sole proprietorships. The National Women's Business 
Council is their voice.
  The Council's independent voice is the key to its success and 
influence. The structure of the Council helps to maintain that 
independence. The Council has 15 members. The Chair is appointed by the 
President and must be a prominent businesswoman. Six members come from 
women's business organizations, including representatives of women's 
business center sites. The remaining eight members are political 
appointees, split evenly between Democrats and Republicans. These 
political slots are appointed by the SBA Administrator based upon the 
recommendations of the Chair and Ranking Members of the Senate Business 
and Entrepreneurship Committee and the House Small Business Committee. 
All of these ``party-affiliated'' members must be small business 
owners.
  This bipartisan balance in the Council's membership helps to ensure 
that any policy recommendations or positions the Council takes will 
reflect the needs of women in business and not the political agenda of 
one political party over another. Certainly, the political balance is 
not completely even because the Chair is appointed by the President, 
but the Democrats have a strong voice with four members on the Council. 
That will only be true, however, as long as the Democratic seats are 
filled.
  Unfortunately, this has not always been the case. Vacancies on the 
Council are supposed to be filled no later than 30 days after a seat 
becomes open. However, over the past two years, the SBA has routinely 
failed to meet this 30-day statutory deadline. The Council Chair was 
vacant from May 29, 2001 to May 21, 2002, a period of 11 months and 22 
days. As a result, the Council could not even meet.
  Vacancies in the party-affiliated seats hurt the Council's 
independence. Of the party-affiliated seats reserved for the 
President's party, one seat was vacant for three months; two were 
vacant for a period of seven months; and another went vacant for 21 
months. Two of the seats reserved for Democrats remained vacant for 
nearly two years, another seat was vacant for seven months, and the 
fourth seat remains vacant today. In the past, these

[[Page S9718]]

vacancies have not been filled in a manner consistent with maintaining 
a bipartisan balance and the independence of the Council. Let me give 
you an example.

  In February of this year the Council announced its support for 
Association Health Plans. This is an important issue for many small 
businesses and for the economy on the whole. At the time, the Council 
had three Republican members and no Democrats. Regardless of what 
opinion you may have of the Association Health Plans issue, the 
Council's position can be dismissed by some as being political because 
of the partisan imbalance on the Council at the time it made its 
endorsement. Instead of being an unquestioned resource for Congress and 
policy makers to rely on, the Council faces potential criticism that it 
is nothing more than a mouthpiece for one party over another.
  Today, I am introducing legislation to protect the independence of 
the Council. The National Women's Business Council Independence 
Preservation Act of 2003 will ensure that the Council maintains its 
value as an advisor to Congress and the Administration. This measure 
simply requires that vacancies in the party-affiliated seats be filled 
evenly so that the Council maintains a bipartisan balance. This will 
help to ensure that the Council's policy advice is free from any 
partisan taint.
  My legislation also ensures accountability by requiring the SBA 
Administrator to report to Congress on vacancies that remain unfilled 
for more than 30 days. The report must cite the reasons for the 
vacancies, what is causing any delays in filling the positions, whether 
nominees were available for consideration, at what stage in the vetting 
process nominees are, whether there are any objections to the nominees 
and what those objections are, an estimate for when the vacancies will 
be filled, and any other relevant information relating to the 
vacancies.
  I urge my colleagues to support this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1442

       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 ``National Women's Business 
     Council Independence Preservation Act of 2003''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The National Women's Business Council provides an 
     independent source of advice and policy recommendations 
     regarding women's business development and the needs of women 
     entrepreneurs in the United States to--
       (A) the President;
       (B) Congress;
       (C) the Interagency Committee on Women's Business 
     Enterprise; and
       (D) the Administrator of the Small Business Administration.
       (2) The members of the National Women's Business Council 
     are small business owners, representatives of business 
     organizations, and representatives of women's business 
     centers.
       (3) The chair and ranking member of the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives make 
     recommendations to the Administrator to fill 8 of the 
     positions on the National Women's Business Council. Four of 
     the positions are reserved for small business owners who are 
     affiliated with the political party of the President and four 
     of the positions are reserved for small business owners who 
     are not affiliated with the political party of the President. 
     This method of appointment ensures that the National Women's 
     Business Council will provide Congress with non-partisan, 
     balanced, and independent advice.
       (4) In order to maintain the independence of the National 
     Women's Business Council and to ensure that the Council 
     continues to provide Congress with advice on a non-partisan 
     basis, it is essential that the Council maintain the 
     bipartisan balance established under section 407 of the 
     Women's Business Ownership Act of 1988 (15 U.S.C. 7107).

     SEC. 3. MAINTAINING THE POLITICAL INDEPENDENCE OF THE 
                   NATIONAL WOMEN'S BUSINESS COUNCIL.

       Section 407(f) of the Women's Business Ownership Act of 
     1988 (15 U.S.C. 7107(f)) is amended--
       (1) by striking ``A vacancy'' and inserting the following:
       ``(1) In general.--A vacancy''; and
       (2) by adding at the end the following:
       ``(2) Partisan balance.--When filling vacancies under 
     paragraph (1), the Administrator shall, to the extent 
     practicable, ensure that there are an equal number of members 
     on the Council from each of the 2 major political parties.''
       ``(3) Accountability.--If a vacancy is not filled within 
     the 30-day period required under paragraph (1) or if there 
     exists an imbalance of party-affiliated members on the 
     Council for a period exceeding 30 days, the Administrator 
     shall submit a report, not later than 10 days after the 
     respective 30-day deadline, to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives, that 
     explains why the respective deadline was not met and provides 
     an estimated date on which any vacancies will be filled.''.
                                 ______
                                 
      By Mr. CARPER (for himself, Mr. Nelson of Nebraska, and Ms. 
        Collins):
  S. 1443. A bill to amend part A of title IV of the Social Security 
Act to reauthorize the temporary assistance to needy families program, 
and for other purposes; to the Committee on Finance.
  Mr. CARPER. Mr. President, I come to the floor to take this time to 
talk about the reauthorization of welfare reform, the reform launched a 
half dozen years ago. The authorization for those reforms has expired 
once, has been renewed for a year, and will expire again at the end of 
this year.
  When Bill Clinton ran for President in 1992, he said a number of 
things for which he is remembered. He said: It is the economy, stupid. 
And it is always the economy, stupid, as far as I am concerned. But he 
also said we ought to change welfare as we know it. And we have.
  Welfare reform was very much needed in the mid-1990s. A lot of people 
who ended up on welfare stayed there for long periods of time. And one 
of the reasons why they stayed there for so long was because they and 
their families were better off being on welfare than not. If people on 
welfare went to work, they lost some things. They lost maybe health 
care for their kids, eligibility for food stamps, nutritional support 
for their families, affordable housing. They certainly had to pay more 
for affordable housing.
  And what would they gain by going to work and getting off welfare? 
The right to pay taxes: State income taxes, Federal income taxes, 
Social Security taxes, Medicare taxes, and others. After losing those 
certain things and gaining the right to pay those taxes, they would 
have to deal with the costs included in childcare. Who is going to take 
care of my kids? How will I pay for it? How will I get to work? Is 
there transportation? Is there transit? Do I have a car? Is it a 
working car? If I don't, how do I get one or pay for it or maintain it?
  The reforms adopted in 1996 were actually endorsed by the National 
Governors Association which served as a catalyst for the adoption of 
Federal law. There were a number of principles that underscored or 
underwrote that welfare reform initiative of the mid-1990s. The first 
was work first. We should not place emphasis on finding people for jobs 
that may not exist. We ought to help people to go to work first.
  The second principle was, work ought to pay more than welfare. People 
actually ought to be better off because somebody in that family is 
going to work every day.
  The third principle was really a tough love principle. There ought to 
be limits on the amount of time that people could be on welfare. States 
could make it more stringent but a 5-year cap on the amount of time 
people spent on welfare should be the law of the land. We should have a 
tough love approach. There ought to be a certain toughness in what we 
are doing.
  People should show up for job interviews. They should take the jobs 
offered. They should not be able to walk away from the jobs. If they do 
those kinds of things, they would face, in a number of States, the 
likelihood of being sanctioned for their refusal or inability to go to 
work and continue to work.
  We also said that we realize there are some people on welfare who 
will never come off. For reasons physiological, they are going to be 
dependent forever. We allowed the States to recognize some percentage--
I think 20 percent--of the caseload of people who will not go to work.

[[Page S9719]]

  We said that it might be a smart idea to have a rainy day fund, in 
case the economy falls off a cliff or we have a lot more people who 
show up and need a welfare payment. So we provided for a rainy day 
fund.
  Finally, we said there are really four critical elements that need to 
be addressed in order for people to get off welfare and stay off 
welfare for an extended period of time. No. 1, there had to be a job to 
go to. No. 2, they have to have a way to get to the job. No. 3, there 
has to be health care for the kids. If the kids get sick, parents are 
not going to go to work. There has to be minimal health care for the 
family. People will not go to work if there is nobody to take care of 
their kids. So there needs to be some assistance given for childcare.
  By most standards, the welfare reforms we began a half dozen years 
ago are regarded as a success. The rolls are down by roughly half 
across the country, including Delaware. Many families who used to be on 
welfare are now working and those families are, for the most part, 
better off. In those families where somebody is going to work every 
day, that parent sets an example for their children that there is an 
expectation to go to work, that there is dignity with work, and we are 
expected to be self-aligned and self-sufficient, if we are 
psychologically able to do that.
  I have heard the old adage, ``If it ain't broke, don't fix it.'' Some 
people said that about the welfare reforms to be adopted in 1996--that 
they were not broke and we ought not to fix them. Other people said we 
ought to change it substantially, which is what we did in 1996. Some 
would like to go back to a situation that existed prior to that time. 
Others would like to go to an even tougher love arrangement, with the 
emphasis on toughness and not a whole lot of love involved.
  Rather than saying if it ain't broke, don't fix it, I think the 
better approach is to say this: If it is not perfect, make it better. 
The reforms we adopted 6 years ago can be improved upon and we can make 
it better.
  I want to talk about a proposal Senator Nelson and I will be 
offering. As former Governors of our States, we believe it will build 
on the changes adopted in 1996. It would make the system better and 
make it one that is more likely to help people get off welfare and stay 
off for an extended period of time, and hopefully forever.
  When we adopted the welfare reforms of 1996, we decided to take 
welfare, which had been an entitlement program, and make it a block 
grant program. I believe it provided that $16.5 million would be 
distributed to States in block grants and States could apportion that 
money out, to be used for a variety of things, including cash welfare 
payments, childcare assistance, health care, and other things. They 
could also use the money for transportation assistance. We put a 5-year 
limit on the amount of time people, under Federal law, could be 
eligible for welfare benefits. We also said in that law that we want 
States to eventually increase their work participation rates.
  If you look at the welfare caseload, the percentage of people doing 
work or work-like activities, we wanted that to increase so by 2002 the 
work participation would have gone up 50 percent from wherever it 
started. That is where it is today; the work participation rate is 50 
percent.
  We give a credit to States that moved people off of welfare since the 
mid to late 1990s. So if they have moved people off welfare, States can 
get a credit toward the work participation rate, with the 50-percent 
mandate.
  As it turned out, when they moved half of the people off of the 
welfare rolls and the work participation rate is 50 percent effectively 
by moving people off welfare to work, in most of the States we have 
eliminated de facto the work participation rate. Most States have a 
zero work participation rate as a result.

  Our bill changes that in a couple of ways. It gradually raises from 
50 percent to 70 percent, in 5-percent increments each year, the work 
participation rate, so that by 2008, today's rate would go up to 70 
percent.
  We provide for something called an employment credit. The employment 
credit provides a credit to States against its work participation rate 
for doing a couple of things. One, for moving people to work. Two, they 
get bonus credit for moving people to work at better paying jobs. Also, 
States can earn partial credit against the work participation rate if 
people are doing at least 16 hours of core work activities.
  Under the current Federal law, a workweek for people who have kids 
over the age of 6 is 30 hours in order to count toward the work 
participation rate. Under current law, if a person has a child under 6, 
they need to be working 20 hours in order to count toward the States' 
work participation requirement.
  Senator Nelson and I would change that a little bit. We say that--
there is one thing we don't change. If you have a child under the age 
of 6, it is still 20 hours. If they are over the age of 6, we expect 
them to be working 32 hours, 8 of which can be activities other than 
core work activities. An example would be assistance for substance 
abuse, or anything that is deemed to be eliminating the barrier toward 
employment. If a person doesn't have a high school degree, they can be 
working toward their GED, and that counts as part of that 8 hours. But 
24 hours of the 32 would have to be a core work activity. I will give 
you some examples: private sector work, public sector work, community 
service, and vocational education.
  Senator Nelson and I also made a modification with respect to 
education and training. Under current law, vocational education counts 
up to--I believe you count it toward your work participation rate for 
12 months. We make that 24 months. We put in a cap. If you had 100 
people on your caseload, no more than 30 percent of that 100 people who 
are involved in vocational education training or postsecondary can be 
counted toward a State's work participation rate. We extend from 12 
months to 24 months those who are participating in vocational credit.
  If you want people to go to work, you have to make sure there is help 
on the childcare side. If we are going to raise the hours, we expect 
the people to do work or work-like activities. If we are going to raise 
the work participation rate, we have to provide additional assistance. 
There is an extra $6 billion that we provide for childcare over the 5-
year period.
  In addition, we raise the social service block grant to a fully 
authorized level over a 5-year period of time. On the transportation 
side, as I mentioned earlier, unless people can get to work--we can 
have all the caps and participation rates we want but unless people can 
get to work, they are not going to be able to get off welfare and stay 
off of welfare.
  In our legislation, we provide under current law where States can use 
the TANF block grant for transportation assistance. We provide 
authorizing language for another $15 million in authorization for 
transportation. If you live in a rural area and there is no 
transportation, States can help people buy cheaper but working cars to 
get where they need to go.
  We make a change with respect to transitional health care. Under 
current law, if I am on welfare and then I go to work, I lose my health 
care. I can get 12 months of transitional assistance from Medicaid. We 
raise that. We give States the discretion to raise that to 24 months.
  I see Senator Grassley has risen to speak. I will finish my remarks. 
I say this to him. I appreciate very much his effort in leading the 
Finance Committee. Senator Nelson and I have actually been privileged 
to be Governors of our States--8 years apiece--at the time we launched 
welfare reform. We learned a lot from those experiences. We think it is 
germane to the debate that is coming soon in the next steps in welfare 
reform. We hope to be part of the debate--maybe not in your committee 
but certainly when we get the bill to the floor. As much as I 
understand what is taking shape here, I think there are common elements 
in what Senator Grassley is seeking to do and what Senator Nelson and I 
propose to do. We look very much forward to engaging with the chairman 
in the work he is doing now and with that which is going to be brought 
to the floor later this year.
  Mr. President, I ask unanimous consent that the text of this bill 
that Senator Nelson and I are introducing be printed in the Record.

[[Page S9720]]

  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1443

       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 ``Building on Welfare Success 
     Act of 2003''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Findings.

                             TITLE I--WORK

Sec. 101. Increase in minimum participation rates.
Sec. 102. Increase in number of hours required for work and work-
              related activities.
Sec. 103. Treatment of rehabilitative services as an additional work 
              activity.
Sec. 104. Education and training.
Sec. 105. Authority to establish parents as scholars programs.
Sec. 106. Replacement of caseload reduction credit with employment 
              credit.
Sec. 107. Elimination of separate work participation rate for 2-parent 
              families.
Sec. 108. State option to count a caregiver of a family member with a 
              disability or chronic illness as engaged in work.

                 TITLE II--FAMILY PROMOTION AND SUPPORT

 Subtitle A--Family Formation Fund and Teen Pregnancy Prevention Grants

Sec. 201. Promotion of family formation.
Sec. 202. Ban on imposition of stricter eligibility criteria for 2-
              parent families.
Sec. 203. Teen pregnancy prevention grants.
Sec. 204. Teen pregnancy prevention resource center.
Sec. 205. Establishing national goals to prevent teen pregnancy.

        Subtitle B--Child Support Distribution to Families First

                Chapter 1--Distribution Of Child Support

Sec. 211. Distribution of child support collected by States on behalf 
              of children receiving certain welfare benefits.

                    Chapter 2--Expanded Enforcement

Sec. 221. Decrease in amount of child support arrearage triggering 
              passport denial.
Sec. 222. Use of tax refund intercept program to collect past-due child 
              support on behalf of children who are not minors.
Sec. 223. Garnishment of compensation paid to veterans for service-
              connected disabilities in order to enforce child support 
              obligations.
Sec. 224. Mandatory review and adjustment of child support orders for 
              families receiving TANF.
Sec. 225. Improved interstate enforcement.

                        Chapter 3--Miscellaneous

Sec. 231. Report on undistributed child support payments.
Sec. 232. Use of new hire information to assist in administration of 
              unemployment compensation programs.
Sec. 233. Immigration provisions.
Sec. 234. Increase in payment rate to States for expenditures for 
              short-term training of staff of certain child welfare 
              agencies.

                   Subtitle C--Responsible Fatherhood

Sec. 241. Responsible fatherhood grants.
Sec. 242. National clearinghouse for responsible fatherhood programs.
Sec. 243. Block grants to States to encourage media campaigns.

                      TITLE III--STATE FLEXIBILITY

Sec. 301. State option to assist legal immigrant families.
Sec. 302. Optional coverage of legal immigrants under the medicaid 
              program and title XXI.
Sec. 303. 5-year extension and simplification of the transitional 
              medical assistance program (TMA).
Sec. 304. Definition of assistance.
Sec. 305. Clarification of authority of States to use TANF funds 
              carried over from prior years to provide TANF benefits 
              and services.
Sec. 306. Authority to use TANF funds for housing benefits.

                 TITLE IV--RESOURCES AND ACCOUNTABILITY

Sec. 401. Reauthorization of State family assistance grants.
Sec. 402. Reauthorization of supplemental grants for population 
              increases.
Sec. 403. Contingency fund.
Sec. 404. Child care.
Sec. 405. Restoration of funding for the social services block grant.
Sec. 406. Competitive grants for public-private partnerships for 
              educational opportunities for career advancement.
Sec. 407. Grants to improve access to transportation.
Sec. 408. Pathway to self-sufficiency grants to improve coordination of 
              assistance for low-income families.
Sec. 409. Transitional jobs programs.
Sec. 410. GAO study on impact of ban on SSI benefits for legal 
              immigrants.
Sec. 411. Ensuring TANF funds are not used to displace public 
              employees; application of workplace laws to welfare 
              recipients.
Sec. 412. Data collection and reporting.

                         TITLE V--MISCELLANEOUS

Sec. 501. Effective date.

     SEC. 3. REFERENCES.

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

     SEC. 4. FINDINGS.

       Congress makes the following findings:
       (1) The Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
     2105) was a fundamental change to reform the Federal welfare 
     system to shift it from an entitlement program into a 
     transition program to help families move from welfare to work 
     and personal responsibility.
       (2) Since enactment of the 1996 welfare reform law, welfare 
     cash assistance caseloads have dropped dramatically, by 
     approximately 50 percent, and approximately \2/3\ of welfare 
     recipients who have left the cash assistance rolls have left 
     for work.
       (3) Another sign of reform and progress is that funding has 
     shifted from providing monthly cash assistance for parents to 
     stay at home to over \1/2\ of the funding targeted to pay for 
     work supports, such as child care, transportation, job 
     placement, limited job training, or other priorities.
       (4) Investments in child care and transportation, and 
     health care access will help continue this success and move 
     more people from welfare to work.
       (5) While many families have moved from welfare to work, 
     many families struggle in low-wage jobs and have trouble 
     getting promised supports such as medicaid, child care, food 
     stamps, and other supports available under programs intended 
     to help families.
       (6) Child poverty rates in the United States have improved 
     but they could be lower and they remain high when compared to 
     the rates of other developed countries. More must be done to 
     reduce child poverty in our Nation.
       (7) State flexibility has been critical to the success of 
     the 1996 welfare reform law and will be important for States 
     to provide a broad range of services to address parents on 
     welfare with barriers to employment. State flexibility also 
     is important for States to continue successful welfare 
     programs that have cut the caseload in half since 1996.
       (8) Children deserve to be raised in supportive homes, 
     preferably with 2 loving parents. It is crucial to end 
     policies that discriminate against serving 2-parent families 
     within the welfare system. It is also important to support 
     innovative programs to encourage full participation in child 
     support and child rearing by noncustodial parents.
       (9) Despite declining national and State rates, 35 percent 
     of 10 girls in the United States get pregnant at least once 
     by age 20, nearly 900,000 girls get pregnant each year, and 
     there are nearly 500,000 teen births each year. The national 
     teen birth rate for Hispanic teen girls - the fastest growing 
     group - is declining the slowest.
       (10) If teen birth rates had stayed at the 1991 peak level, 
     there would have been at least 800,000 additional babies born 
     to teenagers.

                             TITLE I--WORK

     SEC. 101. INCREASE IN MINIMUM PARTICIPATION RATES.

       The table set forth in section 407(a)(1) (42 U.S.C. 
     607(a)(1)) is amended--
       (1) in the item relating to fiscal year 2002--
       (A) by striking ``or thereafter'' and inserting ``2003, or 
     2004''; and
       (B) by striking the period; and
       (2) by adding at the end the following:

      ``2005......................................................55   
       2006.......................................................60   
       2007.......................................................65   
       2008 or thereafter......................................70.''.  

     SEC. 102. INCREASE IN NUMBER OF HOURS REQUIRED FOR WORK AND 
                   WORK-RELATED ACTIVITIES.

       Section 407(c)(1) (42 U.S.C. 607(c)(1)), as amended by 
     section 107(3), is amended--
       (1) in the matter preceding the table set forth in that 
     paragraph, by striking ``20 hours'' and inserting ``24 
     hours''; and
       (2) in the table--
       (A) in the item relating to fiscal year 2000, by striking 
     ``or thereafter'' and inserting ``, 2001, 2002, or 2003'';
       (B) by striking the period at the end; and
       (C) by adding at the end the following:

       2004 or thereafter......................................32.''.  

     SEC. 103. TREATMENT OF REHABILITATIVE SERVICES AS AN 
                   ADDITIONAL WORK ACTIVITY.

       (a) In General.--Section 407(d) (42 U.S.C. 607(d)) is 
     amended--
       (1) in paragraph (11), by striking ``and'' at the end;
       (2) in paragraph (12), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:

[[Page S9721]]

       ``(13)(A) rehabilitative services, such as adult basic 
     education, participation in a program designed to increase 
     proficiency in the English language, or, in the case of an 
     individual determined by a qualified medical, mental health, 
     or social services professional as having a physical or 
     mental disability, substance abuse problem, or other problem 
     that requires rehabilitative services, substance abuse 
     treatment, mental health treatment, or other rehabilitative 
     services, provided that the provision of such services is a 
     requirement of the individual's individual responsibility 
     plan under section 408(b) (not to exceed 3 months out of any 
     24-month period, or, if such services for a longer period of 
     time is a requirement of the individual's plan under section 
     408(b), up to 6 months, but only if, during the last 3 months 
     of such 6 months, such services are combined with work or 
     job-readiness activities); and
       ``(B) for purposes of counting toward the minimum average 
     number of hours per week specified in subsection (c)(1), 
     services described in subparagraph (A), the provision of 
     which is a requirement of the individual's individual 
     responsibility plan under section 408(b), until an individual 
     successfully completes such services (and without regard to 
     the time limits for the receipt of such services for purposes 
     of subparagraph (A).''.
       (b) Conforming Amendments.--Section 407(c)(1) (42 U.S.C. 
     607(c)(1)), as amended by sections 102 and 107(3), is amended 
     by striking ``or (12)'' and inserting ``(12), or (13)(A)''.

     SEC. 104. EDUCATION AND TRAINING.

       (a) Increase in Months for Vocational Educational Training 
     To Count as a Work Activity.--Section 407(d)(8) is amended to 
     read as follows:
       ``(8) vocational educational training (not to exceed 24 
     months with respect to any individual);''.
       (b) State Option To Treat Participants in Postsecondary 
     Education Program Established by the State as Engaged In 
     Work.--Section 407(c)(2) (42 U.S.C. 607(c)(2)) is amended by 
     adding at the end the following:
       ``(E) State option to treat participants in postsecondary 
     education program established by the State as engaged in 
     work.--In the case of a State that elects to establish a 
     postsecondary education program under section 404(l), the 
     State may include, for purposes of determining monthly 
     participation rates under subsection (b)(1)(B)(i), all 
     families that include an individual participating in such 
     program during the month as being engaged in work for the 
     month, so long as each such individual is in compliance with 
     the requirements of that program.''.
       (c) Elimination of Recipients Completing Secondary School 
     From Limit on Number of TANF Recipients Participating in 
     Vocational Educational Training.--
       (1) In general.--Section 407(c)(2)(D) (42 U.S.C. 
     607(c)(2)(D)) is amended to read as follows:
       ``(D) Limitation on number of persons who may be treated as 
     engaged in work by reason of participation in vocational 
     educational training.--For purposes of determining monthly 
     participation rates under subsection (b)(1)(B)(i), not more 
     than 30 percent of the number of individuals in all families 
     in a State who are treated as engaged in work for a month may 
     consist of individuals who are determined to be engaged in 
     work for the month by reason of participation in vocational 
     educational training (determined without regard to 
     individuals described in subparagraph (C) or participating in 
     a program referred to in subparagraph (E)).''.
       (2) Conforming amendment.--Section 407(c)(2)(C)(ii) (42 
     U.S.C. 607(c)(2)(C)(ii) is amended by inserting ``including 
     vocational educational training'' after ``employment''.

     SEC. 105. AUTHORITY TO ESTABLISH PARENTS AS SCHOLARS 
                   PROGRAMS.

       Section 404 (42 U.S.C. 604) is amended by adding at the end 
     the following:
       ``(l) Authority to Establish Parents as Scholars 
     Programs.--
       ``(1) In general.--A State to which a grant is made under 
     section 403 may use the grant to establish a parents as 
     scholars program under which an eligible participant may be 
     provided support services described in paragraph (4) based on 
     the participant's need in order to complete the program.
       ``(2) Definition of eligible participant.--
       ``(A) In general.--In this subsection, the term `eligible 
     participant' means an individual who receives assistance 
     under the State program funded under this part and satisfies 
     the following requirements:
       ``(i) The individual is enrolled as a full-time student in 
     a postsecondary 2- or 4-year degree program.
       ``(ii) The individual does not have a marketable bachelor's 
     degree.
       ``(iii) The individual does not have the skills necessary 
     to earn at least 85 percent of the median wage for the State 
     or locality in which the individual resides.
       ``(iv) The individual is--

       ``(I) pursuing a degree that will improve the individual's 
     ability to support the individual's family, considering the 
     local labor market and employment opportunities; and
       ``(II) demonstrating an ability to succeed in the 
     educational program that has been chosen.

       ``(v) The individual participates in a combination of 
     education, training, study or worksite experience for an 
     average of not less than 20 hours per week (including time 
     spent studying at 150 percent of time spent in class).
       ``(vi) After the first 24 months of participation in the 
     program, the individual--

       ``(I) works not less than 15 hours per week (in addition to 
     school and study time); or
       ``(II) engages in a combination of class hours, study hours 
     (including time spent studying at 150 percent of time spent 
     in class) and work for a total of not less than 32 hours per 
     week.

       ``(vii) During the period the individual participates in 
     the program, the individual--

       ``(I) maintains not less than a 2.0 grade point average;
       ``(II) attends classes as scheduled;
       ``(III) reports to the individual's caseworker for the 
     program any changes that might affect the individual's 
     participation;

       ``(IV) provides the individual's caseworker with a copy of 
     any financial aid award letters; and
       ``(V) provides the individual's caseworker with the 
     individual's semester grades as requested.

       ``(B) Definition of full-time student.--
       ``(i) In general.--For purposes of subparagraph (A)(i), an 
     individual shall be considered a full-time student if such 
     individual is taking courses having the number of hours 
     needed under the requirements of the educational institution 
     in which the individual is enrolled, to complete the 
     requirements of a degree within the usual timeframe of 2 or 4 
     years, as applicable.
       ``(ii) Exception.--The State may, for good cause, modify 
     the number of hours required under clause (i) to allow 
     additional time, not to exceed 150 percent of the usual 
     timeframe required for completion of a 2- or 4-year degree, 
     for an individual to complete a degree and be considered a 
     full-time student under a program established under this 
     subsection.
       ``(3) Modification of eligible participant requirements.--A 
     State may, for good cause, modify the requirements for an 
     eligible participant set forth in paragraph (2)(A).
       ``(4) Support services described.--For purposes of 
     paragraph (1), the support services described in this 
     paragraph include 1 or more of the following during the 
     period the eligible participant is in the program established 
     under this subsection:
       ``(A) Child care for children under age 13 or for children 
     who are physically or mentally incapable of caring for 
     themselves.
       ``(B) Transportation services, including--
       ``(i) mileage at a set rate per mile or reimbursement for 
     public or private transportation;
       ``(ii) payment for automotive repairs, not to exceed $500 
     per academic year on a vehicle registered to the eligible 
     participant; and
       ``(iii) reimbursement for vehicle liability insurance, not 
     to exceed $300, for the eligible participant's vehicle.
       ``(C) Payment for books and supplies to the extent that 
     such items are not covered by grants and loans, not to exceed 
     $750 per academic year.
       ``(D) Such other expenses, not to exceed $500, that the 
     State determines are necessary for the eligible participant 
     to complete the program established under this subsection and 
     that are not covered by any other available support services 
     program.''.

     SEC. 106. REPLACEMENT OF CASELOAD REDUCTION CREDIT WITH 
                   EMPLOYMENT CREDIT.

       (a) Employment Credit to Reward States in Which Families 
     Leave Welfare for Work; Additional Credit for Families With 
     Higher Earnings.--
       (1) In general.--Section 407(b) (42 U.S.C. 607(b)), as 
     amended by section 107(2)(A), is amended by inserting after 
     paragraph (1) the following:
       ``(2) Employment credit.--
       ``(A) In general.--The participation rate determined under 
     paragraph (1) of a State for a fiscal year shall be increased 
     by the lesser of--
       ``(i) the number of percentage points (if any) of the 
     employment credit for the State for the fiscal year; or
       ``(ii) the number of percentage points (if any) by which 
     the participation rate, so determined, is less than 100 
     percent.
       ``(B) Calculation of credit.--
       ``(i) In general.--The employment credit for a State for a 
     fiscal year is an amount equal to--

       ``(I) twice the average quarterly number of families with 
     an adult that ceased to receive assistance under the State 
     program funded under this part during the preceding fiscal 
     year (but only if the adult did not receive such assistance 
     for at least 2 months after the cessation) and that was 
     employed during the calendar quarter immediately succeeding 
     the quarter in which the payments ceased; divided by
       ``(II) the average monthly number of families that include 
     an adult who received cash payments under the State program 
     funded under this part during the preceding fiscal year.

       ``(ii) Special rule for former recipients with higher 
     earnings.--In calculating the employment credit for a State 
     for a fiscal year, a family that,in the quarter in which the 
     wage was examined, earned at least 50 percent of the average 
     quarterly wage in the State (determined on the basis of State 
     unemployment data) shall be considered to be 1.5 families.
       ``(C) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary to carry out this paragraph.
       ``(D) Reports on amount of credit.--Not later than 6 months 
     after the end of each calendar quarter, the Secretary shall 
     report to Congress and each State the amount of the 
     employment credit for the State for the quarter. The 
     Secretary may carry out this

[[Page S9722]]

     subparagraph using funds made available under this part for 
     research.''.
       (2) Authority of secretary to use information in national 
     directory of new hires.--Section 453(i) (42 U.S.C. 653(i)) is 
     amended by adding at the end the following:
       ``(5) Calculation of employment credit for purposes of 
     determining state work participation rates under tanf.--The 
     Secretary may use the information in the National Directory 
     of New Hires for purposes of calculating State employment 
     credits pursuant to section 407(b)(2).''.
       (3) Elimination of caseload reduction credit.--Section 
     407(b), as amended by paragraph (1) and section 107(2)(A), is 
     amended by striking paragraph (3) and redesignating 
     paragraphs (4) and (5) as paragraphs (3) and (4), 
     respectively.
       (b) States to Receive Partial Credit Toward Work 
     Participation Rate for Recipients Engaged in Part-Time 
     Work.--Section 407(c)(1) (42 U.S.C. 607(c)(1)), as amended by 
     section 107(3), is amended by adding at the end the following 
     flush sentence: ``For purposes of subsection (b)(1)(B)(i), a 
     family that does not include a recipient who is participating 
     in work activities for an average of 32 hours per week during 
     a month but includes a recipient who is participating in such 
     activities during the month for an average of at least 50 
     percent of the minimum average number of hours per week 
     specified for the month in the table set forth in this 
     subparagraph shall be counted as a percentage of a family 
     that includes an adult or minor child head of household who 
     is engaged in work for the month, which percentage shall be 
     the number of hours for which the recipient participated in 
     such activities during the month divided by the number of 
     hours of such participation required of the recipient under 
     this section for the month.''.
       (c) TANF Recipients Who Qualify for Supplemental Security 
     Income Benefits Removed from Work Participation Rate 
     Calculation for Entire Year.--Section 407(b)(1)(B)(ii) (42 
     U.S.C. 607(b)(1)(B)(ii)) is amended--
       (1) in subclause (I), by inserting ``who has not become 
     eligible for supplemental security income benefits under 
     title XVI during the fiscal year'' before the semicolon; and
       (2) in subclause (II), by inserting ``, and that do not 
     include an adult or minor child head of household who has 
     become eligible for supplemental security income benefits 
     under title XVI during the fiscal year'' before the period.
       (d) Effective Date.--The amendments made by this section 
     take effect on October 1, 2005.

     SEC. 107. ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 
                   2-PARENT FAMILIES.

       Section 407 (42 U.S.C. 607) is amended--
       (1) in subsection (a)--
       (A) in the heading of paragraph (1), by striking ``All 
     families'' and inserting ``In general''; and
       (B) by striking paragraph (2);
       (2) in subsection (b)--
       (A) by striking paragraph (2);
       (B) in paragraph (4), by striking ``paragraphs (1)(B) and 
     (2)(B)'' and inserting ``paragraph (1)(B)''; and
       (C) in paragraph (5), by striking ``rates'' and inserting 
     ``rate''; and
       (3) in subsection (c)(1)--
       (A) by striking ``General rules.--'' and all that follows 
     through ``For purposes'' in subparagraph (A) and inserting 
     ``General rule.--For purposes''; and
       (B) by striking subparagraph (B).

     SEC. 108. STATE OPTION TO COUNT A CAREGIVER OF A FAMILY 
                   MEMBER WITH A DISABILITY OR CHRONIC ILLNESS AS 
                   ENGAGED IN WORK.

       Section 407(c)(2) (42 U.S.C. 607(c)(2)) is amended by 
     adding at the end the following:
       ``(E) State option to count a caregiver of a family member 
     with a disability or chronic illness as engaged in work.--
       ``(i) In general.--If a State determines that a recipient 
     is needed to provide care for a child with a physical or 
     mental disability or chronic illness (as defined by the 
     State), or an adult relative with a physical or mental 
     disability or chronic illness (as so defined), the State may 
     deem the recipient to be engaged in work for purposes of 
     determining the monthly participation rate under subsection 
     (b)(1)(B)(i).
       ``(ii) Inclusion in individual responsibility plan; annual 
     review.--The need to provide care described in clause (i) 
     shall be specified in the recipient's individual 
     responsibility plan established under section 408(b) and 
     reviewed not less than annually.
       ``(iii) Engagement in other activity.--Nothing in clause 
     (i) or (ii) shall be construed as prohibiting a State from 
     determining that, taking into consideration the needs of the 
     child or adult relative with a physical or mental disability 
     or chronic illness, an adult recipient who provides care for 
     such child or adult relative can engage in some other 
     additional work activity, or another activity that may lead 
     to work, for all or a portion of the time required to meet 
     the work requirement under the State program funded under 
     this part.''.

                 TITLE II--FAMILY PROMOTION AND SUPPORT

 Subtitle A--Family Formation Fund and Teen Pregnancy Prevention Grants

     SEC. 201. PROMOTION OF FAMILY FORMATION.

       Section 403(a) (42 U.S.C. 603(a)) is amended by adding at 
     the end the following:
       ``(6) Family formation grants.--
       ``(A) Authority.--
       ``(i) In general.--The Secretary shall award competitive 
     grants to States, Indian tribes, nonprofit entities, and 
     charitable or religious organizations for the cost of 
     developing and implementing healthy marriage promotion 
     programs.
       ``(ii) Application.--A State, Indian tribe, nonprofit 
     entity, or a charitable or religious organization desiring a 
     grant under this paragraph shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(B) Permissible activities.--Funds provided under a grant 
     awarded under this paragraph may be used for programs or 
     activities that are designed to promote healthy and stable 
     marriage, including the following:
       ``(i) Voluntary marriage and relationship skills education 
     programs for nonmarried pregnant women and nonmarried 
     expectant fathers.
       ``(ii) Voluntary premarital education and marriage and 
     relationship skills education for engaged couples and for 
     couples interested in marriage.
       ``(iii) Voluntary marriage enhancement and marriage and 
     relationship skills education programs for married couples 
     including mediation services and couples counseling.
       ``(iv) Teen pregnancy prevention programs, including the 
     prevention of repeat pregnancies.
       ``(v) Domestic violence prevention programs for training 
     and technical assistance activities to be provided to other 
     entities funded under this subparagraph.
       ``(C) Grants selection criteria.--
       ``(i) In general.--The Secretary shall promulgate for 
     public comment criteria for selecting grant proposals to be 
     funded under subparagraph (B). Such criteria shall--

       ``(I) set forth a grant review process that includes 
     independent experts, including individuals with expertise in 
     programs for low-income families, programs addressing teen 
     pregnancy prevention, programs addressing teen parenting or 
     youth development, programs addressing domestic violence, 
     program research, and program administration, and shall be 
     designed to ensure that an individual shall not be involved 
     in the grant selection process if such involvement would pose 
     a conflict of interest for the individual;
       ``(II) specify grantee qualifications and requirements, 
     including a requirement that grant applications provide 
     financial information, including a copy of the applicant's 
     most recent audit report, and shall require grantees to agree 
     to maintain such records, make such reports, and cooperate 
     with such reviews or audits as the Secretary may find 
     necessary for purposes of oversight of project activities and 
     expenditures;
       ``(III) require grant proposals to identify community 
     support and include a plan to collaborate with appropriate 
     public and community-based organizations and service 
     providers; and
       ``(IV) require grant proposals to describe the methods the 
     applicant plans to use to recruit project participants and 
     the applicant's plan to evaluate project implementation, 
     operation, and outcomes, and to demonstrate that there is a 
     sufficient number of potential participants to conduct the 
     evaluation.

       ``(ii) Oversight of evaluations.--The Secretary shall 
     ensure that there is an appropriate evaluation for all grant 
     proposals funded under subparagraph (B), including use of 
     random assignment in appropriate instances.
       ``(D) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, there is 
     appropriated for making grants under this paragraph--
       ``(i) for fiscal year 2004, $75,000,000;
       ``(ii) for fiscal year 2005, $100,000,000;
       ``(iii) for fiscal year 2006, $150,000,000;
       ``(iv) for fiscal year 2007, $175,000,000; and
       ``(v) for fiscal year 2008, $200,000,000.''.

     SEC. 202. BAN ON IMPOSITION OF STRICTER ELIGIBILITY CRITERIA 
                   FOR 2-PARENT FAMILIES.

       (a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)) is 
     amended by adding at the end the following:
       ``(12) Ban on imposition of stricter eligibility criteria 
     for 2-parent families.--In determining the eligibility of a 
     2-parent family for assistance under a State program funded 
     under this part, the State shall not impose a requirement 
     that does not apply in determining the eligibility of a 1-
     parent family for such assistance.''.
       (b) Penalty.--Section 409(a) (42 U.S.C. 609(a)) is amended 
     by adding at the end the following:
       ``(15) Penalty for imposition of stricter eligibility 
     criteria for 2-parent families.--
       ``(A) In general.--If the Secretary determines that a State 
     to which a grant is made under section 403 for a fiscal year 
     has violated section 408(a)(12) during the fiscal year, the 
     Secretary shall reduce the grant payable to the State under 
     section 403(a)(1) for the immediately succeeding fiscal year 
     by an amount equal to 5 percent of the State family 
     assistance grant.
       ``(B) Penalty based on severity of failure.--The Secretary 
     shall impose reductions under subparagraph (A) with respect 
     to a fiscal year based on the degree of noncompliance.''.

[[Page S9723]]

     SEC. 203. TEEN PREGNANCY PREVENTION GRANTS.

       Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read 
     as follows:
       ``(2) Grants to prevent teen pregnancy.--
       ``(A) Submission of plan.--
       ``(i) In general.--Each State that submits a plan that 
     meets the requirements of clause (ii) shall be entitled to 
     receive from the Secretary a teen pregnancy prevention grant 
     in the amount determined under subparagraph (B) for each of 
     fiscal years 2004 through 2008.
       ``(ii) Plan requirements.--A plan meets the requirements of 
     this clause if the plan--

       ``(I) describes the State's numerical goal for reducing 
     teen pregnancy and teen births;
       ``(II) identifies the strategies to be used to achieve such 
     goal; and
       ``(III) describes the efforts the State will make to 
     involve young men, as well as young women, in delaying 
     pregnancy and parenting.

       ``(iii) Set-aside for grants to indian tribes.--Not less 
     than an amount equal to 1.5 percent of the amount 
     appropriated under subparagraph (G) for a fiscal year shall 
     be used for the purpose of awarding grants to Indian tribes 
     under this paragraph in such manner, and subject to such 
     requirements, as the Secretary, in consultation with such 
     tribes, determines appropriate.
       ``(B) Grant amount.--
       ``(i) In general.--The Secretary shall allot to each State 
     with a plan approved under subparagraph (A) an amount equal 
     to--

       ``(I) with respect to fiscal year 2004, the amount that 
     bears the same ratio to the amount of funds appropriated 
     under subparagraph (G) for such fiscal year as the proportion 
     of births in the State to teens under age 20 bears to the 
     number of such births in all States; and
       ``(II) with respect to each of fiscal years 2005 through 
     2008, the amount that bears the same ratio to 50 percent of 
     the amount of funds appropriated under subparagraph (G) for 
     each such fiscal year as the proportion of births in the 
     State to teens under age 20 bears to the number of such 
     births in all States.

       ``(ii) Incentive funds.--In addition to the amount 
     determined for a State under clause (i)(II), in the case of a 
     State that is a high achieving State (as defined in clause 
     (iii)), the Secretary shall allot to such high achieving 
     State with respect to each of fiscal years 2005 through 2008, 
     the amount that bears the same ratio to 50 percent of the 
     amount of funds appropriated under subparagraph (G) for each 
     such fiscal year as the proportion of teens under age 20 in 
     the high achieving State bears to the number of such teens in 
     all such high achieving States.
       ``(iii) Definition of high achieving state.--In this 
     paragraph, the term `high achieving State' means a State that 
     has achieved an annual decline in the teen birth rate for the 
     State as compared to the preceding year (or the most recent 
     year for which data is available) of at least 2.5 percent.
       ``(iv) Determination of teen birth rates.--For purposes of 
     this subparagraph, the teen birth rate for a State shall be 
     determined on the basis of the birth rate per 1,000 women, 
     ages 15 through 19, who reside in the State.
       ``(C) Use of funds.--
       ``(i) In general.--A State shall use funds provided under a 
     grant made under this paragraph to implement teen pregnancy 
     prevention strategies that--

       ``(I) are abstinence-first, as defined in clause (ii)(I);
       ``(II) replicate or substantially incorporate the elements 
     of 1 or more teen pregnancy prevention programs, including 
     certain youth development programs and service learning 
     programs, that have been proven effective (on the basis of 
     rigorous scientific research as defined in clause (ii)(III));
       ``(III) delay or decrease sexual activity, increase 
     contraceptive use among sexually active teens, or reduce 
     teenage pregnancies without increasing risky behaviors; and
       ``(IV) incorporate outreach or media programs.

       ``(ii) Design and implementation flexibility.--States and 
     Indian tribes receiving a grant under this paragraph shall 
     have flexibility to determine how to use funds made available 
     under the grant to design and implement the teen pregnancy 
     prevention strategies described in clause (i).
       ``(iii) Definitions.--In this paragraph:

       ``(I) Abstinence-first.--The term `abstinence-first' means 
     a strategy that strongly emphasizes abstinence as the best 
     and only certain way to avoid pregnancy and sexually 
     transmitted infections and that discusses the scientifically 
     proven effectiveness, benefits, and limitations of 
     contraception and other approaches in a manner that is 
     medically accurate, as defined in subclause (II).
       ``(II) Medically accurate.--The term `medically accurate' 
     means information that is supported by research recognized as 
     accurate and objective by leading medical, psychological, 
     psychiatric, or public health organizations and agencies and, 
     where relevant, is published in a peer-reviewed journal (as 
     defined by the American Medical Association).
       ``(III) Rigorous scientific research.--The term `rigorous 
     scientific research' means research that typically uses 
     randomized control trials and other similar strong 
     experimental designs.

       ``(D) Subgrant or contract recipients.--A State to which a 
     grant is made under this paragraph for a fiscal year may 
     award subgrants or contracts to--
       ``(i) State or local nonprofit coalitions working to 
     prevent teenage pregnancy;
       ``(ii) State, local, or tribal agencies;
       ``(iii) schools;
       ``(iv) entities that provide after school programs;
       ``(v) nonprofit community or faith-based organizations; or
       ``(vi) other organizations designated by the State.
       ``(E) Supplementation of funds.--A State to which a grant 
     is made under this paragraph for a fiscal year shall use 
     funds provided under the grant to supplement and not supplant 
     funds that would otherwise be available to the State for 
     preventing teen pregnancy.
       ``(F) Data reporting.--A State to which a grant is made 
     under this paragraph for a fiscal year shall cooperate with 
     the Secretary to collect information and report on outcomes 
     of programs funded under the grant, as specified by the 
     Secretary.
       ``(G) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, there are 
     appropriated for making grants under this paragraph--
       ``(i) for fiscal year 2004, $50,000,000; and
       ``(ii) for each of fiscal years 2005 through 2008, 
     $100,000,000.''.

     SEC. 204. TEEN PREGNANCY PREVENTION RESOURCE CENTER.

       (a) Authority To Establish.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall make 
     a grant to a nationally recognized, nonpartisan, nonprofit 
     organization that meets the requirements described in 
     paragraph (2) to establish and operate a national teen 
     pregnancy prevention resource center (in this section 
     referred to as the ``Resource Center'') to carry out the 
     purposes and activities described in subsection (b).
       (2) Contractor requirements.--The requirements described in 
     this paragraph are the following:
       (A) The organization has at least 7 years of experience in 
     working with diverse sectors of society to reduce teen 
     pregnancy.
       (B) The organization has a demonstrated ability to work 
     with and provide assistance to a broad range of individuals 
     and entities, including teens, parents, the entertainment and 
     news media, State, tribal, and local organizations, networks 
     of teen pregnancy prevention practitioners, businesses, faith 
     and community leaders, and researchers.
       (C) The organization is research-based and has capabilities 
     in scientific analysis and evaluation.
       (D) The organization has comprehensive knowledge and data 
     about teen pregnancy prevention strategies.
       (E) The organization has experience carrying out activities 
     similar to the activities described in subsection (b)(2).
       (b) Purposes and Activities.--
       (1) Purposes.--The purposes of the Resource Center are to--
       (A) provide information and technical assistance to States, 
     Indian tribes, local communities, and other public or private 
     organizations seeking to reduce rates of teen pregnancy;
       (B) support parents in their essential role in preventing 
     teen pregnancy by equipping parents with information and 
     resources to promote and strengthen communication with their 
     children; and
       (C) assist the entertainment media industry by providing 
     information and helping that industry develop content and 
     messages for teens and adults that can help prevent teen 
     pregnancy.
       (2) Activities.--The Resource Center shall carry out the 
     purposes described in paragraph (1) through the following 
     activities:
       (A) Synthesizing and disseminating research and information 
     regarding effective and promising practices to prevent teen 
     pregnancy.
       (B) Developing and providing information on how to design 
     and implement effective programs to prevent teen pregnancy.
       (C) Helping States, local communities, and other 
     organizations increase their knowledge of existing resources 
     that can be used to advance teen pregnancy prevention 
     efforts, build their capacity to access such resources, and 
     develop partnerships with other programs and funding streams.
       (D) Linking organizations working to reduce teen pregnancy 
     with experts and peer groups, including the creation of 
     technical assistance networks.
       (E) Providing consultation and resources on how to reduce 
     teen pregnancy through a broad array of strategies, including 
     enlisting the help of various sectors of society such as 
     parents, other adults (such as coaches, teachers, and 
     mentors), community or faith-based groups, the entertainment 
     and news media, business, and teens themselves.
       (F) Assisting organizations seeking to reduce teen 
     pregnancy in their efforts to work with all forms of media 
     and to reach a variety of audiences (such as teens, parents, 
     and ethnically diverse groups) to communicate effective 
     messages about preventing teen pregnancy, including messages 
     that focus on abstinence, responsible behavior, family 
     communication, relationships, and values.
       (G) Providing resources for parents and other adults that 
     help to foster strong connections with children, which has 
     been proven effective in reducing sexual activity and teen 
     pregnancy, including online access to research, parent 
     guides, tips, and alerts

[[Page S9724]]

     about upcoming opportunities to use the entertainment media 
     as a discussion starter.
       (H) Working directly with individuals and organizations in 
     the entertainment industry to provide consultation and serve 
     as a source of factual information on issues related to teen 
     pregnancy prevention.
       (c) Media Campaigns.--
       (1) In general.--The organization operating the Resource 
     Center may use a portion of the funds appropriated to carry 
     out this section to develop and implement media campaigns 
     directly or through grants, contracts, or cooperative 
     agreements with other entities. Such campaigns may include 
     the production and distribution of printed materials and 
     messages for print media, television and radio broadcast 
     media, the Internet, or such other media as may be 
     appropriate for reaching large numbers of young people, 
     parents, and community leaders.
       (2) Matching.--To the extent possible, funds used to 
     develop and implement media campaigns under this subsection 
     should be matched with non-Federal resources, including in-
     kind contributions, from public and private entities.
       (d) Collaboration With Other Organizations.--The 
     organization operating the Resource Center shall collaborate 
     with other organizations that have expertise and interest in 
     teen pregnancy prevention and that can help to reach out to 
     diverse audiences.
       (e) Evaluation.--
       (1) Reservation and availability of funds.--Of the amount 
     appropriated under subsection (f) for fiscal year 2004, 
     $5,000,000 shall be reserved for use by the Secretary of 
     Health and Human Services to prepare an interim and final 
     report summarizing and synthesizing outcomes and lessons 
     learned from the activities funded under this section. Funds 
     reserved under the preceding sentence shall remain available 
     for expenditure through fiscal year 2008.
       (2) Required information.--Each report required under 
     paragraph (1) shall include--
       (A) a rigorous scientific evaluation of at least 3 such 
     activities that are selected to represent a diversity of 
     strategies; and
       (B) an assessment of the ability to replicate and expand 
     activities that have proven effective on a smaller scale.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Health and Human 
     Services to carry out this section, $10,000,000 for each of 
     fiscal years 2004 through 2008.

     SEC. 205. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN 
                   PREGNANCY.

       Section 905 of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (42 U.S.C. 710 note) 
     is amended to read as follows:

     ``SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN 
                   PREGNANCY.

       ``(a) In General.--Not later than January 1, 2004, the 
     Secretary of Health and Human Services shall establish a 
     national goal of reducing teen pregnancy by at least 25 
     percent by January 1, 2014.
       ``(b) Report.--Not later than June 30, 2004, and annually 
     thereafter, the Secretary of Health and Human Services shall 
     report to Congress with respect to the progress that has been 
     made in meeting the national goal established under 
     subsection (a).''.

        Subtitle B--Child Support Distribution to Families First

                CHAPTER 1--DISTRIBUTION OF CHILD SUPPORT

     SEC. 211. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES 
                   ON BEHALF OF CHILDREN RECEIVING CERTAIN WELFARE 
                   BENEFITS.

       (a) Modification of Rule Requiring Assignment of Support 
     Rights as a Condition of Receiving TANF.--Section 408(a)(3) 
     (42 U.S.C. 608(a)(3)) is amended to read as follows:
       ``(3) No assistance for families not assigning certain 
     support rights to the state.--A State to which a grant is 
     made under section 403 shall require, as a condition of 
     paying assistance to a family under the State program funded 
     under this part, that a member of the family assign to the 
     State any right the family member may have (on behalf of the 
     family member or of any other person for whom the family 
     member has applied for or is receiving such assistance) to 
     support from any other person, not exceeding the total amount 
     of assistance so paid to the family, which accrues during the 
     period that the family receives assistance under the 
     program.''.
       (b) Increasing Child Support Payments to Families and 
     Simplifying Child Support Distribution Rules.--
       (1) Distribution rules.--
       (A) In general.--Section 457(a) (42 U.S.C. 657(a)) is 
     amended to read as follows:
       ``(a) In General.--Subject to subsections (e) and (f), the 
     amounts collected on behalf of a family as support by a State 
     pursuant to a plan approved under this part shall be 
     distributed as follows:
       ``(1) Families receiving assistance.--In the case of a 
     family receiving assistance from the State, the State shall--
       ``(A) pay to the Federal Government the Federal share of 
     the amount collected, subject to paragraph (3)(A);
       ``(B) retain, or pay to the family, the State share of the 
     amount collected, subject to paragraph (3)(B); and
       ``(C) pay to the family any remaining amount.
       ``(2) Families that formerly received assistance.--In the 
     case of a family that formerly received assistance from the 
     State:
       ``(A) Current support.--To the extent that the amount 
     collected does not exceed the current support amount, the 
     State shall pay the amount to the family.
       ``(B) Arrearages.--Except as otherwise provided in an 
     election made under 434(34), to the extent that the amount 
     collected exceeds the current support amount, the State--
       ``(i) shall first pay to the family the excess amount, to 
     the extent necessary to satisfy support arrearages not 
     assigned pursuant to section 408(a)(3);
       ``(ii) if the amount collected exceeds the amount required 
     to be paid to the family under clause (i), shall--

       ``(I) pay to the Federal Government, the Federal share of 
     the excess amount described in this clause, subject to 
     paragraph (3)(A); and
       ``(II) retain, or pay to the family, the State share of the 
     excess amount described in this clause, subject to paragraph 
     (3)(B); and

       ``(iii) shall pay to the family any remaining amount.
       ``(3) Limitations.--
       ``(A) Federal reimbursements.--The total of the amounts 
     paid by the State to the Federal Government under paragraphs 
     (1) and (2) of this subsection with respect to a family shall 
     not exceed the Federal share of the amount assigned with 
     respect to the family pursuant to section 408(a)(3).
       ``(B) State reimbursements.--The total of the amounts 
     retained by the State under paragraphs (1) and (2) of this 
     subsection with respect to a family shall not exceed the 
     State share of the amount assigned with respect to the family 
     pursuant to section 408(a)(3).
       ``(4) Families that never received assistance.--In the case 
     of any other family, the State shall pay the amount collected 
     to the family.
       ``(5) Families under certain agreements.--Notwithstanding 
     paragraphs (1) through (3), in the case of an amount 
     collected for a family in accordance with a cooperative 
     agreement under section 454(33), the State shall distribute 
     the amount collected pursuant to the terms of the agreement.
       ``(6) State financing options.--To the extent that the 
     State's share of the amount payable to a family pursuant to 
     paragraph (2)(B) of this subsection exceeds the amount that 
     the State estimates (under procedures approved by the 
     Secretary) would have been payable to the family pursuant to 
     former section 457(a)(2)(B) (as in effect for the State 
     immediately before the date this subsection first applies to 
     the State) if such former section had remained in effect, the 
     State may elect to use the grant made to the State under 
     section 403(a) to pay the amount, or to have the payment 
     considered a qualified State expenditure for purposes of 
     section 409(a)(7), but not both.
       ``(7) State option to pass through additional support with 
     federal financial participation.--
       ``(A) In general.--Notwithstanding paragraphs (1), a State 
     shall not be required to pay to the Federal Government the 
     Federal share of an amount collected on behalf of a family 
     that is not a recipient of assistance under the State program 
     funded under part A, to the extent that the State pays the 
     amount to the family.
       ``(B) Recipients of tanf for less than 5 years.--
       ``(i) In general.--Notwithstanding paragraphs (1), a State 
     shall not be required to pay to the Federal Government the 
     Federal share of an amount collected on behalf of a family 
     that is a recipient of assistance under the State program 
     funded under part A and, if the family includes an adult, 
     that has received the assistance for not more than 5 years 
     after the date of enactment of this paragraph, to the extent 
     that--

       ``(I) the State pays the amount to the family; and
       ``(II) subject to clause (ii), the amount is disregarded in 
     determining the amount and type of the assistance provided to 
     the family.

       ``(ii) Limitation.--Of the amount disregarded as described 
     in clause (i)(II), the maximum amount that may be taken into 
     account for purposes of clause (i) shall not exceed $400 per 
     month, except that, in the case of a family that includes 2 
     or more children, the State may elect to increase the maximum 
     amount to not more than $600 per month.
       ``(8) States with demonstration waivers.--Notwithstanding 
     the preceding paragraphs, a State with a waiver under section 
     1115, effective on or before October 1, 1997, the terms of 
     which allow pass-through of child support payments, may pass 
     through payments in accordance with such terms with respect 
     to families subject to the waiver.''.
       (B) State plan to include election as to which rules to 
     apply in distributing child support arrearages collected on 
     behalf of families formerly receiving assistance.--Section 
     454 (42 U.S.C. 654) is amended--
       (i) by striking ``and'' at the end of paragraph (32);
       (ii) by striking the period at the end of paragraph (33) 
     and inserting ``; and''; and
       (iii) by inserting after paragraph (33) the following:
       ``(34) include an election by the State to apply section 
     457(a)(2)(B) of this Act or former section 457(a)(2)(B) of 
     this Act (as in effect for the State immediately before the 
     date this paragraph first applies to the State) to the 
     distribution of the amounts

[[Page S9725]]

     which are the subject of such sections, and for so long as 
     the State elects to so apply such former section, the 
     amendments made by subsection (b)(1)(A) of section 211 of the 
     Building on Welfare Success Act of 2003 shall not apply with 
     respect to the State, notwithstanding subsection (f)(1) of 
     such section 211.''.
       (C) Approval of estimation procedures.--Not later than the 
     date that is 6 months after the date of enactment of this 
     Act, the Secretary of Health and Human Services, in 
     consultation with the States (as defined for purposes of part 
     D of title IV of the Social Security Act), shall establish 
     the procedures to be used to make the estimate described in 
     section 457(a)(6) of such Act.
       (2) Current support amount defined.--Section 457(c) (42 
     U.S.C. 657(c)) is amended by adding at the end the following:
       ``(5) Current support amount.--The term `current support 
     amount' means, with respect to amounts collected as support 
     on behalf of a family, the amount designated as the monthly 
     support obligation of the noncustodial parent in the order 
     requiring the support.''.
       (c) Ban on Recovery of Medicaid Costs for Certain Births.--
     Section 454 (42 U.S.C. 654), as amended by subsection 
     (b)(1)(B), is amended--
       (1) by striking ``and'' at the end of paragraph (33);
       (2) by striking the period at the end of paragraph (34) and 
     inserting ``; and''; and
       (3) by inserting after paragraph (34) the following:
       ``(35) provide that the State shall not use the State 
     program operated under this part to collect any amount owed 
     to the State by reason of costs incurred under the State plan 
     approved under title XIX for the birth of a child for whom 
     support rights have been assigned pursuant to section 
     408(a)(3), 471(a)(17), or 1912.''.
       (d) State Option To Discontinue Pre-1997 Support 
     Assignments.--Section 457(b) (42 U.S.C. 657(b)) is amended to 
     read as follows:
       ``(b) Continuation of Assignments.--
       ``(1) State option to discontinue pre-1997 support 
     assignments.--
       ``(A) In general.--Any rights to support obligations 
     assigned to a State as a condition of receiving assistance 
     from the State under part A and in effect on September 30, 
     1997 (or such earlier date on or after August 22, 1996, as 
     the State may choose), may remain assigned after such date.
       ``(B) Distribution of amounts after assignment 
     discontinuation.--If a State chooses to discontinue the 
     assignment of a support obligation described in subparagraph 
     (A), the State may treat amounts collected pursuant to such 
     assignment as if such amounts had never been assigned and may 
     distribute such amounts to the family in accordance with 
     subsection (a)(4).
       ``(2) State option to discontinue post-1997 assignments.--
       ``(A) In general.--Any rights to support obligations 
     accruing before the date on which a family first receives 
     assistance that are assigned to a State under part A and in 
     effect before the implementation date of this section may 
     remain assigned after such date.
       ``(B) Distribution of amounts after assignment 
     discontinuation.--If a State chooses to discontinue the 
     assignment of a support obligation described in subparagraph 
     (A), the State may treat amounts collected pursuant to such 
     assignment as if such amounts had never been assigned and may 
     distribute such amounts to the family in accordance with 
     subsection (a)(4).''.
       (e) Conforming Amendments.--
       (1) Section 404(a) (42 U.S.C. 604(a)) is amended--
       (A) by striking ``or'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(3) to fund payment of an amount pursuant to clause (i) 
     or (ii) of section 457(a)(2)(B), but only to the extent that 
     the State properly elects under section 457(a)(6) to use the 
     grant to fund the payment.''.
       (2) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is 
     amended--
       (A) in subclause (I)(aa), by striking ``457(a)(1)(B)'' and 
     inserting ``457(a)(1)''; and
       (B) by adding at the end the following:

       ``(V) Portions of certain child support payments collected 
     on behalf of and distributed to families no longer receiving 
     assistance.--Any amount paid by a State pursuant to clause 
     (i) or (ii) of section 457(a)(2)(B), but only to the extent 
     that the State properly elects under section 457(a)(6) to 
     have the payment considered a qualified State expenditure.''.

       (3) Tax offset authority.--Section 6402(c) of the Internal 
     Revenue Code of 1986 (relating to authority to make credits 
     or refunds) is amended--
       (A) in the first sentence, by striking ``the Social 
     Security Act'' the second place it appears and inserting 
     ``such Act''; and
       (B) by striking the third sentence and inserting the 
     following: ``The Secretary shall apply a reduction under this 
     subsection first to an amount certified by the State as past 
     due support under section 464 before any other reductions 
     allowed by law.''.
       (f) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on October 1, 2004, and shall apply to payments 
     under parts A and D of title IV of the Social Security Act 
     for calendar quarters beginning on or after such date, and 
     without regard to whether regulations to implement such 
     amendments (in the case of State programs operated under such 
     part D) are promulgated by such date.
       (2) State option to accelerate effective date.--In 
     addition, a State may elect to have the amendments made by 
     this section apply to the State and to amounts collected by 
     the State, on and after such date as the State may select 
     that is after the date of enactment of this Act and before 
     October 1, 2004.

                    CHAPTER 2--EXPANDED ENFORCEMENT

     SEC. 221. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE 
                   TRIGGERING PASSPORT DENIAL.

       Section 452(k) (42 U.S.C. 652(k)) is amended by striking 
     ``$5,000'' and inserting ``$2,500''.

     SEC. 222. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT 
                   PAST-DUE CHILD SUPPORT ON BEHALF OF CHILDREN 
                   WHO ARE NOT MINORS.

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

     SEC. 223. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR 
                   SERVICE-CONNECTED DISABILITIES IN ORDER TO 
                   ENFORCE CHILD SUPPORT OBLIGATIONS.

       Section 459(h) (42 U.S.C. 659(h)) is amended--
       (1) in paragraph (1)(A)(ii)--
       (A) in subclause (IV), by striking ``or'' after the 
     semicolon;
       (B) in subclause (V), by inserting ``or'' after the 
     semicolon; and
       (C) by adding at the end the following:

       ``(VI) subject to paragraph (3), other than periodic 
     benefits or payments described in subclause (V), by the 
     Secretary of Veterans Affairs as compensation for a service-
     connected disability paid by the Secretary to a former member 
     of the Armed Forces;'';

       (2) in paragraph (1)(B)(iii), by striking ``subparagraph 
     (A)(ii)(V)'' and inserting ``subclauses (V) and (VI) of 
     subparagraph (A)(ii)''; and
       (3) by adding at the end the following:
       ``(3) Limitations with respect to compensation paid to 
     veterans for service-connected disabilities.--
       ``(A) Alimony and child support.--Compensation described in 
     paragraph (1)(A)(ii)(VI) shall not be subject to withholding 
     pursuant to this section--
       ``(i) for payment of alimony; or
       ``(ii) for payment of child support if the individual is 
     fewer than 60 days in arrears in payment of the support.
       ``(B) Limitation.--Not more than 50 percent of any payment 
     of compensation described in subparagraph (A) may be withheld 
     pursuant to this section.''.

     SEC. 224. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
                   ORDERS FOR FAMILIES RECEIVING TANF.

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

     SEC. 225. IMPROVED INTERSTATE ENFORCEMENT.

       (a) Adoption of Uniform State Laws.--Section 466(f) (42 
     U.S.C. 666(f)) is amended--
       (1) by striking ``January 1, 1998'' and inserting ``October 
     1, 2004''; and
       (2) by striking ``August 22, 1996'' and inserting ``January 
     1, 2002''.
       (b) Full Faith and Credit for Child Support Orders.--
     Section 1738B of title 28, United States Code, is amended--
       (1) by striking subsection (d) and inserting the following:
       ``(d) Continuing Exclusive Jurisdiction.--
       ``(1) In general.--Subject to paragraph (2), a court of a 
     State that has made a child support order consistently with 
     this section has continuing, exclusive jurisdiction to modify 
     its order if the order is the controlling order and--
       ``(A) the State is the child's State or the residence of 
     any individual contestant; or
       ``(B) if the State is not the residence of the child or an 
     individual contestant, the contestants consent in a record or 
     in open court that the court may continue to exercise 
     jurisdiction to modify its order.
       ``(2) Requirement.--A court may not exercise its 
     continuing, exclusive jurisdiction to modify the order if the 
     court of another State, acting in accordance with subsections 
     (e) and (f), has made a modification of the order.'';
       (2) in subsection (e)(2)--
       (A) in subparagraph (A), by striking ``because'' and all 
     that follows through the semicolon and inserting ``pursuant 
     to paragraph (1) or (2) of subsection (d);'' and
       (B) in subparagraph (B), by inserting ``with jurisdiction 
     over at least 1 of the individual contestants or that is 
     located in the child's State'' after ``another State'';
       (3) in subsection (f)--
       (A) in the subsection heading, by striking ``Recognition of 
     Child Support Orders''

[[Page S9726]]

     and inserting ``Determination of Controlling Child Support 
     Order'';
       (B) in the matter preceding paragraph (1), by striking 
     ``shall apply'' and all that follows through the colon and 
     inserting ``having personal jurisdiction over both individual 
     contestants shall apply the following rules and by order 
     shall determine which order controls:''
       (C) in paragraph (1), by striking ``must be'' and inserting 
     ``controls and must be so'';
       (D) in paragraph (2), by striking ``must be recognized'' 
     and inserting ``controls'';
       (E) in paragraph (3), by striking ``must be recognized'' 
     each place it appears and inserting ``controls'';
       (F) in paragraph (4)--
       (i) by striking ``may'' and inserting ``shall''; and
       (ii) by striking ``must be recognized'' and inserting 
     ``controls''; and
       (G) by striking paragraph (5);
       (4) by striking subsection (g) and inserting the following:
       ``(g) Enforcement of Modified Orders.--If a child support 
     order issued by a court of a State is modified by a court of 
     another State which properly assumed jurisdiction, the 
     issuing court--
       ``(1) may enforce its order that was modified only as to 
     arrears and interest accruing before the modification;
       ``(2) may provide appropriate relief for violations of its 
     order which occurred before the effective date of the 
     modification; and
       ``(3) shall recognize the modifying order of the other 
     State for the purpose of enforcement.'';
       (5) in subsection (h)--
       (A) in paragraph (1), by striking ``and (3)'' and inserting 
     ``, (3), and (4)'';
       (B) in paragraph (2), by inserting ``the computation and 
     payment of arrearages, and the accrual of interest on the 
     arrearages,'' after ``obligations of support,''; and
       (C) by adding at the end the following:
       ``(4) Prospective application.--After a court determines 
     which is the controlling order and issues an order 
     consolidating arrears, if any, a court shall prospectively 
     apply the law of the State issuing the controlling order, 
     including that State's law with respect to interest on 
     arrears, current and future support, and consolidated 
     arrears.''; and
       (6) in subsection (i), by inserting ``and subsection (d)(2) 
     does not apply'' after ``issuing State''.

                        CHAPTER 3--MISCELLANEOUS

     SEC. 231. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

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

     SEC. 232. USE OF NEW HIRE INFORMATION TO ASSIST IN 
                   ADMINISTRATION OF UNEMPLOYMENT COMPENSATION 
                   PROGRAMS.

       Section 453(j) (42 U.S.C. 653(j)) is amended by adding at 
     the end the following:
       ``(7) Information comparisons and disclosure to assist in 
     administration of unemployment compensation programs.--
       ``(A) In general.--If a State agency responsible for the 
     administration of an unemployment compensation program under 
     Federal or State law transmits to the Secretary the name and 
     social security account number of an individual, the 
     Secretary shall, if the information in the National Directory 
     of New Hires indicates that the individual may be employed, 
     disclose to the State agency the name, address, and employer 
     identification number of any putative employer of the 
     individual, subject to this paragraph.
       ``(B) Condition on disclosure.--The Secretary shall make a 
     disclosure under subparagraph (A) only to the extent that the 
     Secretary determines that the disclosure would not interfere 
     with the effective operation of the program under this part.
       ``(C) Use of information.--A State agency may use 
     information provided under this paragraph only for purposes 
     of administering a program referred to in subparagraph 
     (A).''.

     SEC. 233. IMMIGRATION PROVISIONS.

       (a) Nonimmigrant Aliens Ineligible To Receive Visas and 
     Excluded From Admission for Nonpayment of Child Support.--
       (1) In general.--Section 212(a)(10) of the Immigration and 
     Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding 
     at the end the following:
       ``(F) Nonpayment of child support.--
       ``(i) In general.--Any nonimmigrant alien is inadmissible 
     who is legally obligated under a judgment, decree, or order 
     to pay child support (as defined in section 459(i)(2) of the 
     Social Security Act), and whose failure to pay such child 
     support has resulted in an arrearage exceeding $2,500, until 
     child support payments under the judgment, decree, or order 
     are satisfied or the nonimmigrant alien is in compliance with 
     an approved payment agreement.
       ``(ii) Waiver authorized.--The Secretary of Homeland 
     Security may waive the application of clause (i) in the case 
     of an alien, if the Secretary--

       ``(I) has received a request for the waiver from the court 
     or administrative agency having jurisdiction over the 
     judgment, decree, or order obligating the alien to pay child 
     support that is referred to in such clause; or
       ``(II) determines that there are prevailing humanitarian or 
     public interest concerns.''.

       (2) Effective date.--The amendment made by this subsection 
     shall take effect 180 days after the date of enactment of 
     this Act.
       (b) Authorization To Serve Legal Process in Child Support 
     Cases on Certain Arriving Aliens.--
       (1) In general.--Section 235(d) of the Immigration and 
     Nationality Act (8 U.S.C. 1225(d)) is amended by adding at 
     the end the following:
       ``(5) Authority to serve process in child support cases.--
       ``(A) In general.--To the extent consistent with State law, 
     immigration officers are authorized to serve on any alien who 
     is an applicant for admission to the United States legal 
     process with respect to any action to enforce or establish a 
     legal obligation of an individual to pay child support (as 
     defined in section 459(i)(2) of the Social Security Act).
       ``(B) Definition.--For purposes of subparagraph (A), the 
     term `legal process' means any writ, order, summons, or other 
     similar process, which is issued by--
       ``(i) a court or an administrative agency of competent 
     jurisdiction in any State, territory, or possession of the 
     United States; or
       ``(ii) an authorized official pursuant to an order of such 
     a court or agency or pursuant to State or local law.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to aliens applying for admission to the United 
     States on or after 180 days after the date of enactment of 
     this Act.
       (c) Authorization To Share Child Support Enforcement 
     Information To Enforce Immigration and Naturalization Law.--
       (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
     652) is amended by adding at the end the following:
       ``(m) If the Secretary receives a certification by a State 
     agency, in accordance with section 454(36), that an 
     individual who is a nonimmigrant alien (as defined in section 
     101(a)(15) of the Immigration and Nationality Act) owes 
     arrearages of child support in an amount exceeding $2,500, 
     the Secretary may, at the request of the State agency, the 
     Secretary of State, or the Secretary of Homeland Security, or 
     on the Secretary's own initiative, provide the certification 
     to the Secretary of State and the Secretary of Homeland 
     Security in order to enable them to carry out their 
     responsibilities under sections 212(a)(10) and 235(d) of such 
     Act.''.
       (2) State agency responsibility.--Section 454 (42 U.S.C. 
     654), as amended by section 211(c), is amended--
       (A) by striking ``and'' at the end of paragraph (34);
       (B) by striking the period at the end of paragraph (35) and 
     inserting ``; and''; and
       (C) by inserting after paragraph (35) the following:
       ``(36) provide that the State agency will have in effect a 
     procedure for certifying to the Secretary, in such format and 
     accompanied by such supporting documentation as the Secretary 
     may require, determinations that nonimmigrant aliens owe 
     arrearages of child support in an amount exceeding $2,500.''.

     SEC. 234. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES 
                   FOR SHORT-TERM TRAINING OF STAFF OF CERTAIN 
                   CHILD WELFARE AGENCIES.

       Section 474(a)(3)(B) of the Social Security Act (42 U.S.C. 
     674(a)(3)(B)) is amended by inserting ``, or State-licensed 
     or State-approved child welfare agencies providing 
     services,'' after ``child care institutions''.

                   Subtitle C--Responsible Fatherhood

     SEC. 241. RESPONSIBLE FATHERHOOD GRANTS.

       Part D of title IV of the Social Security Act (42 U.S.C. 
     651 et seq.) is amended by adding at the end the following:

     ``SEC. 469C. RESPONSIBLE FATHERHOOD GRANTS.

       ``(a) Grants to States To Conduct Demonstration Programs.--
       ``(1) Authority to award grants.--
       ``(A) In general.--The Secretary shall award grants to up 
     to 10 eligible States to conduct demonstration programs to 
     carry out the purposes described in paragraph (2).
       ``(B) Eligible state.--For purposes of this subsection, an 
     eligible State is a State that submits to the Secretary the 
     following:
       ``(i) Application.--An application for a grant under this 
     subsection, at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(ii) State plan.--A State plan that includes the 
     following:

       ``(I) Project description.--A description of the types of 
     projects the State will fund under the grant, including a 
     good faith estimate of the number and characteristics of 
     clients to be served under such projects and how the State 
     intends to achieve at least 2 of the purposes described in 
     paragraph (2).
       ``(II) Coordination efforts.--A description of how the 
     State will coordinate and cooperate with State and local 
     entities responsible for carrying out other programs that

[[Page S9727]]

     relate to the purposes intended to be achieved under the 
     demonstration program, including as appropriate, entities 
     responsible for carrying out jobs programs and programs 
     serving children and families.
       ``(III) Records, reports, and audits.--An agreement to 
     maintain such records, submit such reports, and cooperate 
     with such reviews and audits as the Secretary finds necessary 
     for purposes of oversight of the demonstration program.

       ``(iii) Certifications.--The following certifications from 
     the chief executive officer of the State:

       ``(I) A certification that the State will use funds 
     provided under the grant to promote at least 2 of the 
     purposes described in paragraph (2).
       ``(II) A certification that the State will return any 
     unused funds to the Secretary in accordance with the 
     reconciliation process under paragraph (4).
       ``(III) A certification that the funds provided under the 
     grant will be used for programs and activities that target 
     low-income participants and that not less than 50 percent of 
     the participants in each program or activity funded under the 
     grant shall be--

       ``(aa) parents of a child who is, or within the past 24 
     months has been, a recipient of assistance or services under 
     a State program funded under this part and is described in 
     section 454(4)(A)(i); or
       ``(bb) parents, including an expectant parent or a married 
     parent, whose income (after adjustment for court-ordered 
     child support paid or received) does not exceed 150 percent 
     of the poverty line.

       ``(IV) A certification that programs or activities funded 
     under the grant will be provided with information regarding 
     the prevention of domestic violence and that the State will 
     consult with representatives of State and local domestic 
     violence centers.
       ``(V) A certification that funds provided to a State under 
     this subsection shall not be used to supplement or supplant 
     other Federal, State, or local funds that are used to support 
     programs or activities that are related to the purposes 
     described in paragraph (2).

       ``(C) Preferences and factors of consideration.--In 
     awarding grants under this subsection, the Secretary shall 
     take into consideration the following:
       ``(i) Diversity of entities used to conduct programs and 
     activities.--The Secretary shall, to the extent practicable, 
     achieve a balance among the eligible States awarded grants 
     under this subsection with respect to the size, urban or 
     rural location, and employment of differing or unique methods 
     of the entities that the States intend to use to conduct the 
     programs and activities funded under the grants.
       ``(ii) Priority for certain states.--The Secretary shall 
     give priority to awarding grants to eligible States that 
     have--

       ``(I) demonstrated progress in achieving at least 1 of the 
     purposes described in paragraph (2) through previous State 
     initiatives; or
       ``(II) demonstrated need with respect to reducing the 
     incidence of out-of-wedlock births or absent fathers in the 
     State.

       ``(2) Purposes.--The purposes described in this paragraph 
     are the following:
       ``(A) Promoting responsible fatherhood through marriage 
     promotion.--To promote marriage or sustain marriage through 
     such activities as counseling, mentoring, disseminating 
     information about the benefits of marriage and 2-parent 
     involvement for children, enhancing relationship skills, 
     education regarding how to control aggressive behavior, 
     disseminating information on the causes of domestic violence 
     and child abuse, marriage preparation programs, premarital 
     counseling, marital inventories, skills-based marriage 
     education, financial planning seminars, including improving a 
     family's ability to effectively manage family business 
     affairs by means such as education, counseling, or mentoring 
     on matters related to family finances, including household 
     management, budgeting, banking, and handling of financial 
     transactions and home maintenance, and divorce education and 
     reduction programs, including mediation and counseling.
       ``(B) Promoting responsible fatherhood through parenting 
     promotion.--To promote responsible parenting through such 
     activities as counseling, mentoring, and mediation, 
     disseminating information about good parenting practices, 
     skills-based parenting education, encouraging child support 
     payments, and other methods.
       ``(C) Promoting responsible fatherhood through fostering 
     economic stability of fathers.--To foster economic stability 
     by helping fathers improve their economic status by providing 
     such activities as work first services, job search, job 
     training, subsidized employment, job retention, job 
     enhancement, and encouraging education, including career-
     advancing education, dissemination of employment materials, 
     coordination with existing employment services such as 
     welfare-to-work programs, referrals to local employment 
     training initiatives, and other methods.
       ``(3) Restriction on use of funds.--No funds provided under 
     this subsection may be used for costs attributable to court 
     proceedings regarding matters of child visitation or custody, 
     or for legislative advocacy.
       ``(4) Reconciliation process.--
       ``(A) 3-year availability of amounts allotted.--Each 
     eligible State that receives a grant under this subsection 
     for a fiscal year shall return to the Secretary any unused 
     portion of the grant for such fiscal year not later than the 
     last day of the second succeeding fiscal year, together with 
     any earnings on such unused portion.
       ``(B) Procedure for redistribution.--The Secretary shall 
     establish an appropriate procedure for redistributing to 
     eligible entities that have expended the entire amount of a 
     grant made under this subsection for a fiscal year any amount 
     that is returned to the Secretary by eligible States under 
     subparagraph (A).
       ``(5) Amount of grants.--
       ``(A) In general.--Subject to subparagraph (B), the amount 
     of each grant awarded under this subsection shall be an 
     amount sufficient to implement the State plan submitted under 
     paragraph (1)(B)(ii).
       ``(B) Minimum amounts.--No eligible State shall--
       ``(i) in the case of the District of Columbia or a State 
     other than the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands, receive a grant for a fiscal 
     year in an amount that is less than $1,000,000; and
       ``(ii) in the case of the Commonwealth of Puerto Rico, the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands, receive a grant 
     for a fiscal year in an amount that is less than $500,000.
       ``(6) Definition of state.--In this subsection the term 
     `State' means each of the 50 States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands.
       ``(7) Authorization of Appropriations.--There is authorized 
     to be appropriated $20,000,000 for each of fiscal years 2004 
     through 2008 for purposes of making grants to States under 
     this subsection.
       ``(b) Grants to Eligible Entities To Conduct Demonstration 
     Programs.--
       ``(1) Authority to award grants.--
       ``(A) In general.--The Secretary shall award grants to 
     eligible entities to conduct demonstration programs to carry 
     out the purposes described in (a)(2).
       ``(B) Eligible entity.--For purposes of this subsection, an 
     eligible entity is a local government, local public agency, 
     community-based or nonprofit organization, or private entity, 
     including any charitable or faith-based organization that 
     submits to the Secretary the following:
       ``(i) Application.--An application for a grant under this 
     subsection, at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(ii) Project description.--A description of the programs 
     or activities the entity intends to carry out with funds 
     provided under the grant, including a good faith estimate of 
     the number and characteristics of clients to be served under 
     such programs or activities and how the entity intends to 
     achieve at least 2 of the purposes described in subsection 
     (a)(2).
       ``(iii) Coordination efforts.--A description of how the 
     entity will coordinate and cooperate with State and local 
     entities responsible for carrying out other programs that 
     relate to the purposes intended to be achieved under the 
     demonstration program, including as appropriate, entities 
     responsible for carrying out jobs programs and programs 
     serving children and families.
       ``(iv) Records, reports, and audits.--An agreement to 
     maintain such records, submit such reports, and cooperate 
     with such reviews and audits as the Secretary finds necessary 
     for purposes of oversight of the demonstration program.
       ``(v) Certifications.--The following certifications:

       ``(I) A certification that the entity will use funds 
     provided under the grant to promote at least 2 of the 
     purposes described in subsection (a)(2).
       ``(II) A certification that the entity will return any 
     unused funds to the Secretary in accordance with the 
     reconciliation process under paragraph (3).
       ``(III) A certification that the funds provided under the 
     grant will be used for programs and activities that target 
     low-income participants and that not less than 50 percent of 
     the participants in each program or activity funded under the 
     grant shall be--

       ``(aa) parents of a child who is, or within the past 24 
     months has been, a recipient of assistance or services under 
     a State program funded under this part and is described in 
     section 454(4)(A)(i); or
       ``(bb) parents, including an expectant parent or a married 
     parent, whose income (after adjustment for court-ordered 
     child support paid or received) does not exceed 150 percent 
     of the poverty line.

       ``(IV) A certification that the entity will consult with 
     representatives of State and local domestic violence centers.
       ``(V) A certification that funds provided to an entity 
     under this subsection shall not be used to supplement or 
     supplant other Federal, State, or local funds provided to the 
     entity that are used to support programs or activities that 
     are related to the purposes described in subsection (a)(2).

       ``(C) Preferences and factors of consideration.--In 
     awarding grants under this subsection, the Secretary shall, 
     to the extent practicable, achieve a balance among the 
     eligible entities awarded grants under this subsection with 
     respect to the size, urban or rural location, and employment 
     of differing or unique methods of the entities.
       ``(2) Restriction on use of funds.--No funds provided under 
     this subsection may be

[[Page S9728]]

     used for costs attributable to court proceedings regarding 
     matters of child visitation or custody, or for legislative 
     advocacy.
       ``(3) Reconciliation process.--
       ``(A) 3-year availability of amounts allotted.--Each 
     eligible entity that receives a grant under this subsection 
     for a fiscal year shall return to the Secretary any unused 
     portion of the grant for such fiscal year not later than the 
     last day of the second succeeding fiscal year, together with 
     any earnings on such unused portion.
       ``(B) Procedure for redistribution.--The Secretary shall 
     establish an appropriate procedure for redistributing to 
     eligible entities that have expended the entire amount of a 
     grant made under this subsection for a fiscal year any amount 
     that is returned to the Secretary by eligible entities under 
     subparagraph (A).
       ``(4) Authorization of Appropriations.--There is authorized 
     to be appropriated $30,000,000 for each of fiscal years 2004 
     through 2008 for purposes of making grants to eligible 
     entities under this subsection.''.

     SEC. 242. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD 
                   PROGRAMS.

       Section 469C of the Social Security Act, as added by 
     section 241, is amended by adding at the end the following:
       ``(c) Media Campaign National Clearinghouse for Responsible 
     Fatherhood.--
       ``(1) Media campaign and national clearinghouse.--
       ``(A) In general.--From any funds appropriated under 
     paragraph (3), the Secretary shall contract with a nationally 
     recognized, nonprofit fatherhood promotion organization 
     described in paragraph (2) to--
       ``(i) develop, promote, and distribute to interested 
     States, local governments, public agencies, and private 
     entities a media campaign that encourages the appropriate 
     involvement of both parents in the life of any child of the 
     parents, with a priority for programs that specifically 
     address the issue of responsible fatherhood; and
       ``(ii) develop a national clearinghouse to assist States 
     and communities in efforts to promote and support marriage 
     and responsible fatherhood by collecting, evaluating, and 
     making available (through the Internet and by other means) to 
     other States information regarding the media campaigns 
     established under subsection (d).
       ``(B) Coordination with domestic violence programs.--The 
     Secretary shall ensure that the nationally recognized 
     nonprofit fatherhood promotion organization with a contract 
     under subparagraph (A) coordinates the media campaign 
     developed under clause (i) of such paragraph and the national 
     clearinghouse developed under clause (ii) of such paragraph 
     with a national, State, or local domestic violence program.
       ``(2) Nationally recognized, nonprofit fatherhood promotion 
     organization described.--The nationally recognized, nonprofit 
     fatherhood promotion organization described in this paragraph 
     is an organization that has at least 4 years of experience 
     in--
       ``(A) designing and disseminating a national public 
     education campaign, as evidenced by the production and 
     successful placement of television, radio, and print public 
     service announcements that promote the importance of 
     responsible fatherhood, a track record of service to Spanish-
     speaking populations and historically underserved or minority 
     populations, the capacity to fulfill requests for information 
     and a proven history of fulfilling such requests, and a 
     mechanism through which the public can request additional 
     information about the campaign; and
       ``(B) providing consultation and training to community-
     based organizations interested in implementing fatherhood 
     outreach, support, or skill development programs with an 
     emphasis on promoting married fatherhood as the ideal.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated $5,000,000 for each of fiscal years 2004 
     through 2008 to carry out this subsection.''.

     SEC. 243. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA 
                   CAMPAIGNS.

       (a) In General.--Section 469C of the Social Security Act, 
     as added by section 241 and amended by section 242, is 
     amended by adding at the end the following:
       ``(d) Block Grants to States for Media Campaigns Promoting 
     Responsible Fatherhood.--
       ``(1) Definitions.--In this subsection:
       ``(A) Broadcast advertisement.--The term `broadcast 
     advertisement' means a communication intended to be aired by 
     a television or radio broadcast station, including a 
     communication intended to be transmitted through a cable 
     channel.
       ``(B) Child at risk.--The term `child at risk' means each 
     young child whose family income does not exceed the poverty 
     line.
       ``(C) Poverty line.--The term `poverty line' has the 
     meaning given such term in section 673(2) of the Omnibus 
     Budget Reconciliation Act of 1981 (including any revision 
     required by such section) that is applicable to a family of 
     the size involved.
       ``(D) Printed or other advertisement.--The term `printed or 
     other advertisement' includes any communication intended to 
     be distributed through a newspaper, magazine, outdoor 
     advertising facility, mailing, or any other type of general 
     public advertising, but does not include any broadcast 
     advertisement.
       ``(E) State.--The term `State' means each of the 50 States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the United States Virgin Islands, Guam, American Samoa, and 
     the Commonwealth of the Northern Mariana Islands.
       ``(F) Young child.--The term `young child' means an 
     individual under age 5.
       ``(2) State certifications.--Not later than October 1 of 
     each of fiscal year for which a State desires to receive an 
     allotment under this subsection, the chief executive officer 
     of the State shall submit to the Secretary a certification 
     that the State shall--
       ``(A) use such funds to promote the formation and 
     maintenance of married 2-parent families, strengthen fragile 
     families, and promote responsible fatherhood through media 
     campaigns conducted in accordance with the requirements of 
     paragraph (4);
       ``(B) return any unused funds to the Secretary in 
     accordance with the reconciliation process under paragraph 
     (5); and
       ``(C) comply with the reporting requirements under 
     paragraph (6).
       ``(3) Payments to states.--For each of fiscal years 2004 
     through 2008, the Secretary shall pay to each State that 
     submits a certification under paragraph (2), from any funds 
     appropriated under paragraph (8), for the fiscal year an 
     amount equal to the amount of the allotment determined for 
     the fiscal year under paragraph (7).
       ``(4) Establishment of media campaigns.--Each State 
     receiving an allotment under this subsection for a fiscal 
     year shall use the allotment to conduct media campaigns as 
     follows:
       ``(A) Conduct of media campaigns.--
       ``(i) Radio and television media campaigns.--

       ``(I) Production of broadcast advertisements.--At the 
     option of the State, to produce broadcast advertisements that 
     promote the formation and maintenance of married 2-parent 
     families, strengthen fragile families, and promote 
     responsible fatherhood.
       ``(II) Air-time challenge program.--At the option of the 
     State, to establish an air-time challenge program under which 
     the State may spend amounts allotted under this section to 
     purchase time from a broadcast station to air a broadcast 
     advertisement produced under clause (i), but only if the 
     State obtains an amount of time of the same class and during 
     a comparable period to air the advertisement using non-
     Federal contributions.

       ``(ii) Other media campaigns.--At the option of the state, 
     to conduct a media campaign that consists of the production 
     and distribution of printed or other advertisements that 
     promote the formation and maintenance of married 2-parent 
     families, strengthen fragile families, and promote 
     responsible fatherhood.
       ``(B) Administration of media campaigns.--A State may 
     administer media campaigns funded under this subsection 
     directly or through grants, contracts, or cooperative 
     agreements with public agencies, local governments, or 
     private entities, including charitable and faith-based 
     organizations.
       ``(C) Consultation with domestic violence assistance 
     centers.--In developing broadcast and printed advertisements 
     to be used in the media campaigns conducted under 
     subparagraph (A), the State or other entity administering the 
     campaign shall consult with representatives of State and 
     local domestic violence centers.
       ``(D) Non-federal contributions.--In this subsection, the 
     term `non-Federal contributions' includes contributions by 
     the State and by public and private entities. Such 
     contributions may be in cash or in kind. Such term does not 
     include any amounts provided by the Federal Government, or 
     services assisted or subsidized to any significant extent by 
     the Federal Government, or any amount expended by a State 
     before October 1, 2003.
       ``(5) Reconciliation process.--
       ``(A) 3-year availability of amounts allotted.--Each State 
     that receives an allotment under this subsection shall return 
     to the Secretary any unused portion of the amount allotted to 
     a State for a fiscal year not later than the last day of the 
     second succeeding fiscal year together with any earnings on 
     such unused portion.
       ``(B) Procedure for redistribution of unused allotments.--
     The Secretary shall establish an appropriate procedure for 
     redistributing to States that have expended the entire amount 
     allotted under this subsection any amount that is--
       ``(i) returned to the Secretary by States under 
     subparagraph (A); or
       ``(ii) not allotted to a State under this section because 
     the State did not submit a certification under paragraph (2) 
     by October 1 of a fiscal year.
       ``(6) Reporting requirements.--
       ``(A) Monitoring and evaluation.--Each State receiving an 
     allotment under this subsection for a fiscal year shall 
     monitor and evaluate the media campaigns conducted using 
     funds made available under this subsection in such manner as 
     the Secretary, in consultation with the States, determines 
     appropriate.
       ``(B) Annual reports.--Not less frequently than annually, 
     each State receiving an allotment under this subsection for a 
     fiscal year shall submit to the Secretary reports on the 
     media campaigns conducted under this subsection at such time, 
     in such manner, and containing such information as the 
     Secretary may require.
       ``(7) Amount of allotments.--

[[Page S9729]]

       ``(A) In general.--Except as provided in subparagraph (B), 
     of the amount appropriated for the purpose of making 
     allotments under this subsection for a fiscal year, the 
     Secretary shall allot to each State that submits a 
     certification under paragraph (2) for the fiscal year an 
     amount equal to the sum of--
       ``(i) the amount that bears the same ratio to 50 percent of 
     such funds as the number of young children in the State (as 
     determined by the Secretary based on the most recent March 
     supplement to the Current Population Survey of the Bureau of 
     the Census before the beginning of the calendar year in which 
     such fiscal year begins) as bears to the number of such 
     children in all States; and
       ``(ii) the amount that bears the same ratio to 50 percent 
     of such funds as the number of children at risk in the State 
     (as determined by the Secretary based on the most recent 
     March supplement to the Current Population Survey of the 
     Bureau of the Census before the beginning of the calendar 
     year in which such fiscal year begins) bears to the number of 
     such children in all States.
       ``(B) Minimum allotments.--No allotment for a fiscal year 
     under this subsection shall be less than--
       ``(i) in the case of the District of Columbia or a State 
     other than the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands, 1 percent of the amount 
     appropriated for the fiscal year under paragraph (8); and
       ``(ii) in the case of the Commonwealth of Puerto Rico, the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands, 0.5 percent of 
     such amount.
       ``(C) Pro rata reductions.--The Secretary shall make such 
     pro rata reductions to the allotments determined under 
     subparagraph (A) as are necessary to comply with the 
     requirements of subparagraph (B).
       ``(8) Authorization of Appropriations.--There is authorized 
     to be appropriated $20,000,000 for each of fiscal years 2004 
     through 2008 for purposes of making allotments to States 
     under this subsection.''.
       (b) Evaluation.--
       (1) In general.--The Secretary of Health and Human Services 
     shall conduct an evaluation of the impact of the media 
     campaigns funded under section 469C(d) of the Social Security 
     Act, as added by subsection (a).
       (2) Report.--Not later than December 31, 2006, the 
     Secretary of Health and Human Services shall report to 
     Congress the results of the evaluation under paragraph (1).
       (3) Funding.--Of the amount appropriated in accordance with 
     section 469C(d)(8) of the Social Security Act (as added by 
     subsection (a)) for fiscal year 2004, $1,000,000 of such 
     amount shall be transferred and made available for purposes 
     of conducting the evaluation required under this subsection, 
     and shall remain available until expended.

                      TITLE III--STATE FLEXIBILITY

     SEC. 301. STATE OPTION TO ASSIST LEGAL IMMIGRANT FAMILIES.

       (a) State Option.--
       (1) In general.--Section 403(c)(2) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1613(c)(2)) is amended by adding at the end 
     the following:
       ``(M) At State option, assistance, benefits, or services 
     under a State program funded under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.).''.
       (2) Conforming amendment.--Section 408(e) (42 U.S.C. 
     608(e)) is amended to read as follows:
       ``(e) Eligibility of Certain Aliens.--Except as provided in 
     subsection (f), at State option, a State may provide 
     assistance, benefits, or services to a qualified alien (as 
     defined in subsections (b) and (c) of section 431 of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (8 U.S.C. 1641)) under the State program funded 
     under this part in the same manner and to the same extent as 
     a citizen of the United States would be provided such 
     assistance, benefits, or services.''.
       (b) Attribution of Sponsor's Income and Resources to 
     Aliens.--
       (1) In general.--Section 408(f) (42 U.S.C. 608(f)) is 
     amended--
       (A) in the heading, by striking ``Non-213A'' and inserting 
     ``Sponsored'';
       (B) by striking ``The following'' and all that follows 
     through the colon and inserting ``The following rules shall 
     apply in determining whether an alien sponsored under section 
     213A of the Immigration and Nationality Act (and, at the 
     option of the State, a non-213A alien) is eligible for cash 
     assistance under the State program funded under this part, or 
     in determining the amount of such assistance to be provided 
     to a sponsored alien:'';
       (C) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``non-213A'' and inserting ``sponsored'';
       (ii) in subparagraph (B), by inserting ``(or, a greater 
     amount as determined by the State)'' before the period; and
       (iii) in the heading of subparagraph (C), by striking 
     ``non-213a'' and inserting ``sponsored'';
       (D) by striking paragraph (5) and inserting the following:
       ``(5) Exceptions.--This subsection shall not apply to an 
     alien who is--
       ``(A) a minor child if the sponsor of the alien or any 
     spouse of the sponsor is a parent of the alien child; or
       ``(B) described in subsection (e) or (f) of section 421 of 
     the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (8 U.S.C. 1631).''; and
       (E) by adding at the end the following:
       ``(7) Inapplicability to family members who are not 
     sponsored aliens.--Income and resources of a sponsor which 
     are deemed under this subsection to be the income and 
     resources of any alien individual in a family shall not be 
     considered in determining the need of other family members 
     except to the extent such income or resources are actually 
     available to such other family members.
       ``(8) Rule of construction.--For purposes of section 421 of 
     the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (8 U.S.C. 1631), the State program 
     funded under this part is not a Federal means-tested public 
     benefits program.''.
       (2) Conforming amendments.--Section 423(d) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1183a note) is amended by adding at the end 
     the following:
       ``(12) Assistance, benefits, or services under part A of 
     title IV of the Social Security Act except for cash 
     assistance provided to a sponsored alien who is subject to 
     deeming pursuant to section 408(f) of that Act.''.
       (c) State Authority To Provide State and Local Public 
     Benefits for Certain Aliens.--Section 411(d) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1621(d)) is amended--
       (1) in the heading, by inserting ``and Other'' before 
     ``Aliens''; and
       (2) by inserting ``or who otherwise is not a qualified 
     alien (as defined in subsections (b) and (c) of section 
     431)'' after ``United States''.

     SEC. 302. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE 
                   MEDICAID PROGRAM AND TITLE XXI.

       (a) Medicaid Program.--Section 1903(v) (42 U.S.C. 1396b(v)) 
     is amended--
       (1) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (4)''; and
       (2) by adding at the end the following:
       ``(4)(A) A State may elect (in a plan amendment under this 
     title) to provide medical assistance under this title for 
     aliens who are lawfully residing in the United States 
     (including battered aliens described in section 431(c) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996) and who are otherwise eligible for such 
     assistance, within any of the following eligibility 
     categories:
       ``(i) Pregnant women.--Women during pregnancy (and during 
     the 60-day period beginning on the last day of the 
     pregnancy).
       ``(ii) Children.--Children (as defined under such plan), 
     including optional targeted low-income children described in 
     section 1905(u)(2)(B).
       ``(B)(i) In the case of a State that has elected to provide 
     medical assistance to a category of aliens under subparagraph 
     (A), no debt shall accrue under an affidavit of support 
     against any sponsor of such an alien on the basis of 
     provision of assistance to such category and the cost of such 
     assistance shall not be considered as an unreimbursed cost.
       ``(ii) The provisions of sections 401(a), 402(b), 403, and 
     421 of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 shall not apply to a State that 
     makes an election under subparagraph (A).''.
       (b) Title XXI.--Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) 
     is amended by adding at the end the following:
       ``(E) Section 1903(v)(4) (relating to optional coverage of 
     permanent resident alien children), but only if the State has 
     elected to apply such section to that category of children 
     under title XIX.''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2003, and apply to medical 
     assistance and child health assistance furnished on or after 
     such date.

     SEC. 303. 5-YEAR EXTENSION AND SIMPLIFICATION OF THE 
                   TRANSITIONAL MEDICAL ASSISTANCE PROGRAM (TMA).

       (a) Option of Continuous Eligibility for 12 Months; Option 
     of Continuing Coverage for Up To an Additional Year.--
       (1) Option of continuous eligibility for 12 months by 
     making reporting requirements optional.--Section 1925(b) (42 
     U.S.C. 1396r-6(b)) is amended--
       (A) in paragraph (1), by inserting ``, at the option of a 
     State,'' after ``and which'';
       (B) in paragraph (2)(A), by inserting ``Subject to 
     subparagraph (C):'' after ``(A) Notices.--'';
       (C) in paragraph (2)(B), by inserting ``Subject to 
     subparagraph (C):'' after ``(B) Reporting requirements.--'';
       (D) by adding at the end the following new subparagraph:
       ``(C) State option to waive notice and reporting 
     requirements.--A State may waive some or all of the reporting 
     requirements under clauses (i) and (ii) of subparagraph (B). 
     Insofar as it waives such a reporting requirement, the State 
     need not provide for a notice under subparagraph (A) relating 
     to such requirement.''; and
       (E) in paragraph (3)(A)(iii), by inserting ``the State has 
     not waived under paragraph (2)(C) the reporting requirement 
     with respect to such month under paragraph (2)(B) and if'' 
     after ``6-month period if''.

[[Page S9730]]

       (2) State option to extend eligibility for low-income 
     individuals for up to 12 additional months.--Section 1925 (42 
     U.S.C. 1396r-6) is further amended--
       (A) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively; and
       (B) by inserting after subsection (b) the following new 
     subsection:
       ``(c) State Option of Up To 12 Months of Additional 
     Eligibility.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, each State plan approved under this title may 
     provide, at the option of the State, that the State shall 
     offer to each family which received assistance during the 
     entire 6-month period under subsection (b) and which meets 
     the applicable requirement of paragraph (2), in the last 
     month of the period the option of extending coverage under 
     this subsection for the succeeding period not to exceed 12 
     months.
       ``(2) Income restriction.--The option under paragraph (1) 
     shall not be made available to a family for a succeeding 
     period unless the State determines that the family's average 
     gross monthly earnings (less such costs for such child care 
     as is necessary for the employment of the caretaker relative) 
     as of the end of the 6-month period under subsection (b) does 
     not exceed 185 percent of the official poverty line (as 
     defined by the Office of Management and Budget, and revised 
     annually in accordance with section 673(2) of the Omnibus 
     Budget Reconciliation Act of 1981) applicable to a family of 
     the size involved.
       ``(3) Application of extension rules.--The provisions of 
     paragraphs (2), (3), (4), and (5) of subsection (b) shall 
     apply to the extension provided under this subsection in the 
     same manner as they apply to the extension provided under 
     subsection (b)(1), except that for purposes of this 
     subsection--
       ``(A) any reference to a 6-month period under subsection 
     (b)(1) is deemed a reference to the extension period provided 
     under paragraph (1) and any deadlines for any notices or 
     reporting and the premium payment periods shall be modified 
     to correspond to the appropriate calendar quarters of 
     coverage provided under this subsection; and
       ``(B) any reference to a provision of subsection (a) or (b) 
     is deemed a reference to the corresponding provision of 
     subsection (b) or of this subsection, respectively.''.
       (b) State Option To Waive Receipt of Medicaid for 3 of 
     Previous 6 Months To Qualify for TMA.--Section 1925(a)(1) (42 
     U.S.C. 1396r-6(a)(1)) is amended by adding at the end the 
     following: ``A State may, at its option, also apply the 
     previous sentence in the case of a family that was receiving 
     such aid for fewer than 3 months, or that had applied for and 
     was eligible for such aid for fewer than 3 months, during the 
     6 immediately preceding months described in such sentence.''.
       (c) 5-Year Extension of Sunset for TMA.--
       (1) In general.--Subsection (g) of section 1925 (42 U.S.C. 
     1396r-6), as redesignated under subsection (a)(2)(A), and as 
     amended by section 7 of the Welfare Reform Extension Act of 
     2003 (Public Law 108-040), is amended by striking ``2003'' 
     and inserting ``2008''.
       (2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C. 
     1396a(e)(1)(B)), as so amended, is amended by striking 
     ``2003'' and inserting ``2008''.
       (d) CMS Report on Enrollment and Participation Rates Under 
     TMA.--Section 1925 (42 U.S.C. 1396r-6), as amended by 
     subsections (a)(2)(A) and (c), is amended by inserting after 
     subsection (f) the following:
       ``(g) Additional Provisions.--
       ``(1) Collection and reporting of participation 
     information.--Each State shall--
       ``(A) collect and submit to the Secretary, in a format 
     specified by the Secretary, information on average monthly 
     enrollment and average monthly participation rates for adults 
     and children under this section; and
       ``(B) make such information publicly available.
     Such information shall be submitted under subparagraph (A) at 
     the same time and frequency in which other enrollment 
     information under this title is submitted to the Secretary. 
     Using such information, the Secretary shall submit to 
     Congress annual reports concerning such rates.''.
       (e) Coordination of Work.--Section 1925(g) (42 U.S.C. 
     1396r-6(g)), as added by subsection (d), is amended by adding 
     at the end the following new paragraph:
       ``(2) Coordination with administration for children and 
     families.--The Administrator of the Centers for Medicare & 
     Medicaid Services, in carrying out this section, shall work 
     with the Assistant Secretary for the Administration for 
     Children and Families to develop guidance or other technical 
     assistance for States regarding best practices in 
     guaranteeing access to transitional medical assistance under 
     this section.''.
       (f) Elimination of TMA Requirement for States That Extend 
     Coverage to Children and Parents Through 185 Percent of 
     Poverty.--
       (1) In general.--Section 1925 (42 U.S.C. 1396r-6) is 
     further amended by inserting after subsection (g), as added 
     by subsection (d), the following:
       ``(h) Provisions Optional for States That Extend Coverage 
     to Children and Parents Through 185 Percent of Poverty.--A 
     State may meet (but is not required to meet) the requirements 
     of subsections (a) and (b) if it provides for medical 
     assistance under section 1931 to families (including both 
     children and caretaker relatives) the average gross monthly 
     earning of which (less such costs for such child care as is 
     necessary for the employment of a caretaker relative) is at 
     or below a level that is at least 185 percent of the official 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Omnibus Budget Reconciliation Act of 1981) 
     applicable to a family of the size involved.''.
       (2) Conforming amendments.--Section 1925 (42 U.S.C. 1396r-
     6) is further amended, in subsections (a)(1) and (b)(1), by 
     inserting ``, but subject to subsection (h),'' after 
     ``Notwithstanding any other provision of this title,'' each 
     place it appears.
       (g) Requirement of Notice for All Families Losing TANF.--
     Subsection (a)(2) of section 1925 (42 U.S.C. 1396r-6) is 
     amended by adding at the end the following flush sentences:
     ``Each State shall provide, to families whose aid under part 
     A or E of title IV has terminated but whose eligibility for 
     medical assistance under this title continues, written notice 
     of their ongoing eligibility for such medical assistance. If 
     a State makes a determination that any member of a family 
     whose aid under part A or E of title IV is being terminated 
     is also no longer eligible for medical assistance under this 
     title, the notice of such determination shall be supplemented 
     by a 1-page notification form describing the different ways 
     in which individuals and families may qualify for such 
     medical assistance and explaining that individuals and 
     families do not have to be receiving aid under part A or E of 
     title IV in order to qualify for such medical assistance. 
     Such notice shall further be supplemented by information on 
     how to apply for child health assistance under the State 
     children's health insurance program under title XXI and how 
     to apply for medical assistance under this title.''.
       (h) Extending Use of Outstationed Workers To Accept 
     Applications for Transitional Medical Assistance.--Section 
     1902(a)(55) (42 U.S.C. 1396a(a)(55)) is amended by inserting 
     ``and under section 1931'' after ``(a)(10)(A)(ii)(IX)''.
       (i) Effective Dates.--
       (1) In general.--Except as provided in this subsection, the 
     amendments made by this section shall apply to calendar 
     quarters beginning on or after October 1, 2003.
       (2) Notice.--The amendment made by subsection (g) shall 
     take effect 6 months after the date of enactment of this Act.
       (3) Delay permitted for state plan amendment.--In the case 
     of a State plan for medical assistance under title XIX of the 
     Social Security Act which the Secretary of Health and Human 
     Services determines requires State legislation (other than 
     legislation appropriating funds) in order for the plan to 
     meet the additional requirements imposed by the amendments 
     made by this section, the State plan shall not be regarded as 
     failing to comply with the requirements of such title solely 
     on the basis of its failure to meet these additional 
     requirements before the first day of the first calendar 
     quarter beginning after the close of the first regular 
     session of the State legislature that begins after the date 
     of enactment of this Act. For purposes of the previous 
     sentence, in the case of a State that has a 2-year 
     legislative session, each year of such session shall be 
     deemed to be a separate regular session of the State 
     legislature.

     SEC. 304. DEFINITION OF ASSISTANCE.

       Section 419 (42 U.S.C. 619) is amended by adding at the end 
     the following:
       ``(6) Assistance.--
       ``(A) In general.--The term `assistance' means cash 
     benefits and does not include child care or other support 
     services.
       ``(B) Exception.--The term `assistance' does not include a 
     payment to or for an individual or family on a short-term, 
     nonrecurring basis (as defined by the State in accordance 
     with regulations prescribed by the Secretary) or any other 
     benefit or service excluded from the definition of assistance 
     under section 260.31 of title 45 of the Code of Federal 
     Regulations (as in effect on June 1, 2002).''.

     SEC. 305. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF 
                   FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE 
                   TANF BENEFITS AND SERVICES.

       Section 404(e) (42 U.S.C. 604(e)) is amended to read as 
     follows:
       ``(e) Authority To Carry Over Certain Amounts for Benefits 
     or Services or for Future Contingencies.--A State or tribe 
     may use a grant made to the State or tribe under this part 
     for any fiscal year to provide, without fiscal year 
     limitation, any benefit or service that may be provided under 
     the State or tribal program funded under this part.''.

     SEC. 306. AUTHORITY TO USE TANF FUNDS FOR HOUSING BENEFITS.

       (a) In General.--Section 404 (42 U.S.C. 604) is amended by 
     inserting at the end the following:
       ``(l) Use of Funds for Supplemental Housing Benefits.--
       ``(1) In general.--The provision by a State of supplemental 
     housing benefits to or on behalf of an individual eligible 
     for assistance under the State program funded under this 
     part, using funds from a grant made under section 403(a) of 
     this title, shall not be considered to be the provision of 
     assistance to the individual under the State program funded 
     under this part for any purpose except in determining the 
     allowability of the expenditure under section 401(a)(1).
       ``(2) Permitted use of funds.--A State may not use any part 
     of the funds from a

[[Page S9731]]

     grant made under section 403 to supplant rather than 
     supplement State expenditures on housing-related programs.
       ``(3) Definition of supplemental housing benefits.--In this 
     subsection, the term `supplemental housing benefits' means 
     payments made to or on behalf of an individual to reduce or 
     reimburse the costs incurred by the individual for housing 
     accommodations, and the receipt of which does not reduce the 
     amount of assistance, benefits, or services an individual 
     would otherwise receive 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)).''.
       (b) State Plan.--Section 402(a)(1)(B) (42 U.S.C. 
     602(a)(1)(B)) is amended by adding at the end the following:
       ``(v) The document shall describe--

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

                 TITLE IV--RESOURCES AND ACCOUNTABILITY

     SEC. 401. REAUTHORIZATION OF STATE FAMILY ASSISTANCE GRANTS.

       (a) In General.--Section 403(a)(1) (42 U.S.C. 603(a)(1)), 
     as amended by section 3(a) of the Welfare Reform Extension 
     Act of 2003 (Public Law 108-040), is amended--
       (1) in subparagraph (A), by striking ``1996'' and all that 
     follows through ``2003'' and inserting ``2004 through 2008''; 
     and
       (2) in subparagraph (C), by striking ``for fiscal year 
     2003'' and inserting ``for each of fiscal years 2004 through 
     2008''.
       (b) Direct Funding and Administration By Indian Tribes.--
       (1) Tribal family assistance grant.--Section 412(a)(1)(A) 
     (42 U.S.C. 612(a)(1)(A)), as amended by section 3(h) of the 
     Welfare Reform Extension Act of 2003 (Public Law 108-040), is 
     amended by striking ``1997, 1998, 1999, 2000, 2001, 2002, and 
     2003'' and inserting ``2004 through 2008''.
       (2) Grants for indian tribes that received jobs funds.--
     Section 412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)), as so amended, 
     is amended by striking ``1997, 1998, 1999, 2000, 2001, 2002, 
     and 2003'' and inserting ``2004 through 2008''.
       (c) Matching Grants for the Territories.--Section 
     1108(b)(2) (42 U.S.C. 1308(b)(2)), as so amended, is amended 
     by striking ``1997 through 2003'' and inserting ``2004 
     through 2008''.
       (d) Maintenance of Effort Penalty.--Section 409(a)(7) (42 
     U.S.C. 609(a)(7)), as amended by section 3(g) of the Welfare 
     Reform Extension Act of 2003 (Public Law 108-040) is 
     amended--
       (1) in subparagraph (A) by striking ``fiscal year 1998, 
     1999, 2000, 2001, 2002, 2003, or 2004'' and inserting 
     ``fiscal year 2004, 2005, 2006, 2007, 2008, or 2009''; and
       (2) in subparagraph (B)(ii), by striking ``1997 through 
     2003'' and inserting ``2004 through 2008''.
       (e) Federal Loans for State Welfare Programs.--Section 
     406(d) (42 U.S.C. 606(d), as amended by section 3(f) of the 
     Welfare Reform Extension Act of 2003 (Public Law 108-040) is 
     amended by striking ``1997 through 2003'' and inserting 
     ``2004 through 2008''.

     SEC. 402. REAUTHORIZATION OF SUPPLEMENTAL GRANTS FOR 
                   POPULATION INCREASES.

       Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)), as amended 
     by section 3(d) of the Welfare Reform Extension Act of 2003 
     (Public Law 108-040), is amended--
       (1) in clause (i), by striking ``2002 and 2003'' is 
     amended--
       (1) in the subparagraph heading, by striking ``of grants 
     for fiscal year 2002'';
       (2) in clause (i), by striking ``2002 and 2003'' and 
     inserting ``2004 through 2008'';
       (3) in clause (ii), by striking ``2003'' and inserting 
     ``2008''; and
       (4) in clause (iii), by striking ``2002 and 2003'' and 
     inserting ``2004 through 2008''.

     SEC. 403. CONTINGENCY FUND.

       (a) Contingency Funding Available to Needy States.--Section 
     403(b) (42 U.S.C. 603(b)) is amended--
       (1) by striking paragraphs (1) through (3) and inserting 
     the following:
       ``(1) Contingency fund grants.--
       ``(A) Payments.--Subject to subparagraph (C), each State 
     shall receive a contingency fund grant for each eligible 
     month in which the State is a needy State under paragraph 
     (3).
       ``(B) Monthly contingency fund grant amount.--For each 
     eligible month in which a State is a needy State, the State 
     shall receive a contingency fund grant equal to the higher of 
     $0 and the applicable percentage (as defined in subparagraph 
     (D)(i)) of the product of--
       ``(i) the estimated cost of an additional recipient family 
     (as defined in subparagraph (D)(ii)); and
       ``(ii) the increase in the number of families receiving 
     assistance under the State program funded under this part or 
     a program funded with qualified State expenditures (as 
     defined in subparagraph (D)(iv)).
       ``(C) Limitation.--The total amount paid to a single State 
     under subparagraph (A) during a fiscal year shall not exceed 
     the amount equal to 15 percent of the State family assistance 
     grant (as defined under subparagraph (B) of subsection (a)(1) 
     and increased under subparagraph (E) of that subsection).
       ``(D) Definitions.--In this paragraph:
       ``(i) Applicable percentage.--The term `applicable 
     percentage' means the higher of--

       ``(I) 75 percent; and
       ``(II) the sum of the Federal medical assistance percentage 
     for the State (as defined in section 1905(b)) plus 8 
     percentage points.

       ``(ii) Estimated cost of an additional recipient family.--
     The term `estimated cost of an additional recipient family' 
     means the amount equal to 120 percent of the basic assistance 
     cost (as defined under clause (iii)) for families 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)).
       ``(iii) Basic assistance cost.--

       ``(I) In general.--The term `basic assistance cost' means 
     the amount equal to the maximum cash assistance grant for a 
     family consisting of 3 individuals under the State program 
     funded under this part.
       ``(II) Rule for states with more than 1 maximum level.--In 
     the case of a State that has more than 1 maximum cash 
     assistance grant level for families consisting of 3 
     individuals, the basic assistance cost shall be the amount 
     equal to the maximum cash assistance grant level applicable 
     to the largest number of families consisting of 3 individuals 
     receiving assistance under the State program funded under 
     this part or a State program funded with qualified State 
     expenditures (as defined in section 409(a)(7)(B)(i)).

       ``(iv) Increase in the number of families receiving 
     assistance under the state program funded under this part or 
     a program funded with qualified state expenditures.--The term 
     `increase in the number of families receiving assistance 
     under the State program funded under this part or a program 
     funded with qualified State expenditures' means the increase 
     in--

       ``(I) the number of families receiving assistance under the 
     State program funded under this part and under a program 
     funded with qualified State expenditures (as defined in 
     section 409(a)(7)(B)(i)) in the most recent month for which 
     data from the State are available; as compared to
       ``(II) the lower of the average monthly number of families 
     receiving such assistance in either of the 2 completed fiscal 
     years immediately preceding the fiscal year in which the 
     State qualifies as a needy State.

       ``(E) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, there are 
     appropriated for the period of fiscal years 2004 through 
     2008, such sums as are necessary for making contingency fund 
     grants under this subsection in a total amount not to exceed 
     $2,000,000,000.'';
       (2) by redesignating paragraph (4) as paragraph (2); and
       (3) in paragraph (2), as so redesignated--
       (A) by striking ``(3)(A)'' and inserting ``(1)''; and
       (B) by striking ``2-month'' and inserting ``3-month''.
       (b) Modification of Definition of Needy State.--Section 
     403(b) (42 U.S.C. 603(b)) is further amended--
       (1) by striking paragraphs (5) through (7);
       (2) by redesignating paragraph (8) as paragraph (5); and
       (3) by inserting after paragraph (2) (as redesignated by 
     subsection (a)(2)) the following:
       ``(3) Initial determination of whether a state qualifies as 
     a needy state.--
       ``(A) In general.--For purposes of paragraph (1), a State 
     will be initially determined to be a needy State for a month 
     if the State satisfies at least 2 of the following:
       ``(i) The--

       ``(I) average rate of total unemployment in the State for 
     the period consisting of the most recent 3 months for which 
     data are available has increased by the lesser of 1.5 
     percentage points or by 50 percent over the corresponding 3-
     month period in either of the 2 most recent preceding fiscal 
     years; or
       ``(II) average insured unemployment rate for the most 
     recent 3 months for which data are available has increased by 
     1 percentage point over the corresponding 3-month period in 
     either of the 2 most recent preceding fiscal years.

       ``(ii) As determined by the Secretary of Agriculture, the 
     monthly average number of households (as of the last day of 
     each month) that participated in the food stamp program in 
     the State in the then most recently concluded 3-month period 
     for which data are available exceeds by at least 10 percent 
     the monthly average number of households (as of the last day 
     of each month) in the State that participated in the food 
     stamp program in the corresponding 3-month period in either 
     of the 2 most recent preceding fiscal years, provided that 
     the Secretary makes a determination that the State's increase 
     in the

[[Page S9732]]

     number of such households was due, in large measure, to 
     economic conditions rather than an expansion of program 
     eligibility requirements.
       ``(iii) As determined by the Secretary, the monthly average 
     number of families that received 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)) in the most recently concluded 3-month 
     period for which data are available from the State increased 
     by at least 10 percent over the number of such families that 
     received such benefits in the corresponding 3-month period in 
     either of the 2 most recent preceding fiscal years, provided 
     that the Secretary makes a determination that the State's 
     increased caseload was due, in large measure, to economic 
     conditions rather than an expansion of program eligibility 
     requirements.
       ``(B) Duration.--
       ``(i) In general.--A State that qualifies as a needy 
     State--

       ``(I) under subparagraph (A)(i), shall be considered a 
     needy State until the factor which was used to meet the 
     definition of needy State under that subparagraph for the 
     most recently concluded 3-month period for which data are 
     available, falls below the level attained for such factor in 
     the 3-month period in which the State first qualified as a 
     needy State under that subparagraph;
       ``(II) under subparagraph (A)(ii), shall be considered a 
     needy State until the average monthly number of households 
     participating in the food stamp program for the most recently 
     concluded 3-month period for which data are available 
     nationally falls below the food stamp base period level; and
       ``(III) under subparagraph (A)(iii), shall be considered a 
     needy State until the number of families 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 the most recently concluded 
     3-month period for which data are available falls below the 
     TANF base period level.

       ``(ii) Seasonal variations.--Notwithstanding subclauses 
     (II) and (III) of clause (i), a State shall be considered a 
     needy State--

       ``(I) under subparagraph (A)(ii), if with respect to the 
     State, the monthly average number of households participating 
     in the food stamp program for the most recent 3-month period 
     for which data are available nationally falls below the food 
     stamp base period level and the Secretary determines that 
     this is due to expected seasonal variations in food stamp 
     receipt in the State; and
       ``(II) under subparagraph (A)(iii), if, with respect to a 
     State, the monthly average number of families 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 the most recently 
     concluded 3-month period for which data are available 
     nationally falls below the TANF base period level and the 
     Secretary determines that this is due to expected seasonal 
     variations in assistance receipt in the State.

       ``(iii) Food stamp base period level.--In this 
     subparagraph, the term `food stamp base period level' means 
     the monthly average number of households participating in the 
     food stamp program that corresponds to the most recent 3-
     month period for which data are available at the time when 
     the State first was determined to be a needy State under this 
     paragraph.
       ``(iv) TANF base period level.--In this subparagraph, the 
     term `TANF base period level' means the monthly average 
     number of families 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)) that corresponds to the most recent 3 months 
     for which data are available at the time when the State first 
     was determined to be a needy State under this paragraph.
       ``(4) Exception.--
       ``(A) In general.--Notwithstanding paragraph (3), a State 
     that has unobligated TANF reserves from prior fiscal years 
     that equal more than 25 percent of the total amount of grants 
     received by the State under subsection (a) (other than 
     welfare-to-work grants made under paragraph (5) of that 
     subsection prior to fiscal year 1999) but not yet obligated 
     as of the end of the preceding fiscal year shall not be a 
     needy State under this subsection.
       ``(B) Definition of unobligated tanf reserves.--In 
     subparagraph (A), the term `unobligated TANF reserves' means 
     the lessor of--
       ``(i) the total amount of grants made to the State 
     (regardless of the fiscal year in which such funds were 
     awarded) under subsection (a) (other than welfare-to-work 
     grants made under paragraph (5) of that subsection prior to 
     fiscal year 1999) but not yet obligated as of the end of the 
     preceding fiscal year; and
       ``(ii) the total amount of grants made to the State under 
     subsection (a) (other than welfare-to-work grants made under 
     paragraph (5) of that subsection prior to fiscal year 1999) 
     but not yet obligated as of the end of the preceding fiscal 
     year, plus the difference between--

       ``(I) the pro rata share of the fiscal year grants to be 
     made under subsection (a) to the State (other than such 
     welfare-to-work grants); and
       ``(II) current year obligations of the total amount of 
     grants made to all States under subsection (a) (regardless of 
     the fiscal year in which such funds were awarded) (other than 
     such welfare-to-work grants) through the end of the most 
     recent calendar quarter.''.

       (c) Clarification of Reporting Requirements.--Paragraph (5) 
     of section 403(b) (42 U.S.C. 603(b)), as redesignated by 
     subsection (b)(2), is amended by striking ``on the status of 
     the Fund'' and inserting ``on the States that qualified for 
     contingency funds and the amount of funding awarded under 
     this subsection''.

     SEC. 404. CHILD CARE.

       Section 418(a) (42 U.S.C. 618(a)), as amended by section 4 
     of the Welfare Reform Extension Act of 2003, is amended--
       (1) in paragraph (1), in the matter preceding subparagraph 
     (A), by inserting ``and remaining after the reservation 
     described in paragraph (4),'' after ``paragraph (3)'';
       (2) in paragraph (3)--
       (A) by striking ``and'' at the end of subparagraph (E);
       (B) in subparagraph (F), by striking ``2002 and 2003'' and 
     inserting ``2002 through 2006;''; and
       (C) by adding at the end the following:
       ``(G) $3,217,000,000 for fiscal year 2007;
       ``(H) $3,717,000,000 and 2008.'';
       (3) by redesignating paragraph (5) as paragraph (7); and
       (4) by inserting after paragraph (4) the following:
       ``(5) Additional general entitlement grants.--
       ``(A) Appropriation.--
       ``(i) In general.--For additional grants under paragraph 
     (1), there is appropriated--

       ``(I) $750,000,000 for each of fiscal years 2004 and 2005; 
     and
       ``(II) $1,000,000,000 for each of fiscal years 2006 through 
     2008.

       ``(ii) Amounts in addition to other amounts appropriated; 
     availability.--Amounts appropriated under this subparagraph 
     for a fiscal year shall be in addition to amounts 
     appropriated under paragraph (3) for such fiscal year and 
     shall remain available without fiscal year limitation.
       ``(B) Additional grant.--In addition to the grant paid to a 
     State under paragraph (1) for each of fiscal years 2004 
     through 2008, the Secretary, after reserving the amount 
     described in paragraph (4) and subject to the requirement 
     described in paragraph (6), shall pay each State an amount 
     equal to the same proportion of such amount as the proportion 
     of the State's grant under paragraph (1) to the total amount 
     appropriated for State grants under paragraph (1) for such 
     fiscal year.
       ``(6) Requirement for grant increase.--Notwithstanding 
     paragraphs (1), (2), or (5), the aggregate amount paid to a 
     State under this section for each of fiscal years 2004 
     through 2008 may not exceed the aggregate amount paid to the 
     State under this section for fiscal year 2003 unless the 
     State ensures that the level of State expenditures for child 
     care for such fiscal year is not less than the sum of the 
     level of State expenditures for child care that were matched 
     under a grant made to the State under paragraph (2) and that 
     the State expended to meet its maintenance of effort 
     obligation under paragraph (2) for fiscal year 2003.''.

     SEC. 405. RESTORATION OF FUNDING FOR THE SOCIAL SERVICES 
                   BLOCK GRANT.

       (a) Restoration of Funds for the Social Services Block 
     Grant.--Section 2003(c) (42 U.S.C. 1379b(c)) is amended--
       (1) in paragraph (10), by striking ``and'';
       (2) in paragraph (11), by striking ``and each fiscal year 
     thereafter.'' and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(12) $1,750,000,000 for fiscal year 2004;
       ``(13) $1,800,000,000 for fiscal year 2005;
       ``(14) $1,900,000,000 for fiscal year 2006;
       ``(15) $2,100,000,000 for fiscal year 2007; and
       ``(16) $2,800,000,000 for fiscal year 2008 and each fiscal 
     year thereafter.''.
       (b) Restoration of Authority To Transfer up to 10 Percent 
     of TANF Funds.--Section 404(d)(2) (42 U.S.C. 604(d)(2)) is 
     amended to read as follows:
       ``(2) Limitation on amount transferable to title xx 
     programs.--A State may use not more than 10 percent of the 
     amount of any grant made to the State under section 403(a) 
     for a fiscal year to carry out State programs pursuant to 
     title XX.''.

     SEC. 406. COMPETITIVE GRANTS FOR PUBLIC-PRIVATE PARTNERSHIPS 
                   FOR EDUCATIONAL OPPORTUNITIES FOR CAREER 
                   ADVANCEMENT.

       (a) Authority To Award Grants.--
       (1) In general.--The Secretary of Health and Human Services 
     and the Secretary of Labor (in this section referred to as 
     the ``Secretaries'') jointly shall award grants in accordance 
     with the requirements of this section for each fiscal year 
     for which an amount is appropriated to carry out this section 
     for projects proposed by eligible applicants to encourage the 
     formation of public-private partnerships to provide 
     educational opportunities for individuals who receive 
     assistance under the temporary assistance to needy families 
     program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) and for individuals who 
     have ceased to receive assistance under that program.
       (2) Criteria.--The Secretaries shall award grants under 
     this section based on the following:
       (A) The potential effectiveness of the proposed project in 
     carrying out the activities described in subsection (e).

[[Page S9733]]

       (B) Evidence of the ability of the eligible applicant to 
     leverage private, State, and local resources to carry out 
     such activities.
       (C) Evidence of the ability of the eligible applicant to 
     coordinate with other organizations at the State and local 
     level in carrying out such activities.
       (b) Definition of Eligible Applicant.--In this section, the 
     term ``eligible applicant'' means--
       (1) a public educational institution;
       (2) an employer; or
       (3) a local or regional consortium that includes employers 
     or employer associations, education and training providers, 
     local chambers of commerce, or providers of social services.
       (c) Application.--Each eligible applicant desiring a grant 
     under this section shall submit an application to the 
     Secretaries at such time, in such manner, and that includes--
       (1) evidence, including letters of support, demonstrating 
     that the applicant will work with the State in carrying out 
     the activities described in subsection (e); and
       (2) such other information as the Secretaries may 
     reasonably require.
       (d) Determination of Amount of Grants; Availability of 
     Funds.--
       (1) In general.--In determining the appropriate amount of a 
     grant to be awarded under this section, the Secretaries shall 
     provide an eligible applicant with an approved application an 
     amount sufficient to ensure that the project has a reasonable 
     opportunity to be successful, taking into account--
       (A) the number and characteristics of the individuals to be 
     served by the project;
       (B) the job opportunities and job growth in the area to be 
     served by the project;
       (C) the poverty rate for such area; and
       (D) such other factors as the Secretaries deem appropriate.
       (2) Maximum amount.--No eligible applicant shall receive a 
     grant of more than $5,000,000 per year.
       (3) Availability of funds.--Funds provided under a grant 
     awarded under this section for a fiscal year shall remain 
     available for use by the eligible applicant through the end 
     of the succeeding fiscal year.
       (e) Use of Funds.--An eligible applicant awarded a grant 
     under this section shall enter into an agreement with the 
     State or local agency responsible for administering the 
     temporary assistance to needy families program in the area 
     where the eligible applicant is located to provide 
     individuals described in subsection (a) with--
       (1) educational credits or opportunities based upon the 
     length of the individual's employment;
       (2) educational credits or opportunities based upon the 
     individual's commitment to becoming employed; or
       (3) education and training opportunities for career 
     advancement.
       (f) Reports.--
       (1) Project reports.--Each eligible applicant awarded a 
     grant under this section shall submit to the Secretaries such 
     information and data regarding the recipients participating 
     in the project funded under such grant and outcomes for such 
     recipients as the Secretaries may require.
       (2) Report to congress.--The Secretaries shall submit 
     annual reports to Congress on the information and data 
     submitted under paragraph (1).
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section, $25,000,000 for 
     each of fiscal years 2004 through 2008.

     SEC. 407. GRANTS TO IMPROVE ACCESS TO TRANSPORTATION.

       (a) In General.--Section 403(a) (42 U.S.C. 603(a)), as 
     amended by section 201, is amended by adding at the end the 
     following:
       ``(7) Grant to improve access to transportation.--
       ``(A) Purposes.--The purposes of this paragraph are to--
       ``(i) assist low-income families with children obtain 
     dependable, affordable automobiles to improve their 
     employment opportunities and access to training; and
       ``(ii) provide incentives to States, Indian tribes, local 
     governments, and nonprofit entities to develop and administer 
     programs that provide assistance with automobile ownership 
     for low-income families.
       ``(B) Definitions.--In this paragraph:
       ``(i) Locality.--The term `locality' means a municipality 
     that does not administer a State program funded under this 
     part.
       ``(ii) Low-income family with children.--The term `low-
     income family with children' means a household that is 
     eligible for benefits or services funded under the State 
     program funded under this part or under a program funded with 
     qualified State expenditures (as defined in section 
     409(a)(7)(B)(i)).
       ``(iii) Nonprofit entity.--The term `nonprofit entity' 
     means a school, local agency, organization, or institution 
     owned and operated by 1 or more nonprofit corporations or 
     associations, no part of the net earnings of which inures, or 
     may lawfully inure, to the benefit of any private shareholder 
     or individual.
       ``(C) Authority to award grants.--The Secretary may award 
     grants to States, Indian tribes, counties, localities, and 
     nonprofit entities to promote improving access to dependable, 
     affordable automobiles by low-income families with children.
       ``(D) Grant approval criteria.--The Secretary shall 
     establish criteria for approval of an application for a grant 
     under this paragraph that include consideration of--
       ``(i) the extent to which the proposal, if funded, is 
     likely to improve access to training and employment 
     opportunities and child care services by low-income families 
     with children by means of car ownership;
       ``(ii) the level of innovation in the applicant's grant 
     proposal; and
       ``(iii) any partnerships between the public and private 
     sector in the applicant's grant proposal.
       ``(E) Use of funds.--
       ``(i) In general.--A grant awarded under this paragraph 
     shall be used to administer programs that assist low-income 
     families with children with dependable automobile ownership, 
     and maintenance of, or insurance for, the purchased 
     automobile.
       ``(ii) Supplement not supplant.--Funds provided to a State, 
     Indian tribe, county, or locality under a grant awarded under 
     this paragraph shall be used to supplement and not supplant 
     other State, county, or local public funds expended for car 
     ownership programs.
       ``(iii) General rules governing use of funds.--The rules of 
     section 404, other than subsection (b) of that section, shall 
     not apply to a grant made under this paragraph.
       ``(F) Application.--Each applicant desiring a grant under 
     this paragraph shall submit an application to the Secretary 
     at such time, in such manner, and accompanied by such 
     information as the Secretary may reasonably require.
       ``(G) Reversion of funds.--Any funds not expended by a 
     grantee within 3 years after the date the grant is awarded 
     under this paragraph shall be available for redistribution 
     among other grantees in such manner and amount as the 
     Secretary may determine, unless the Secretary extends by 
     regulation the time period to expend such funds.
       ``(H) Limitation on administrative costs of the 
     secretary.--Not more than an amount equal to 5 percent of the 
     funds appropriated to make grants under this paragraph for a 
     fiscal year shall be expended for administrative costs of the 
     Secretary in carrying out this paragraph.
       ``(I) Evaluation.--The Secretary shall, by grant, contract, 
     or interagency agreement, conduct an evaluation of the 
     programs administered with grants awarded under this 
     paragraph.
       ``(J) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to make grants under this 
     paragraph, $20,000,000 for each of fiscal years 2004 through 
     2008.''.
       (b) Improving Use of TANF Funds for Car Ownership Matching 
     Funds.--Section 404(h)(2)(B) of the Social Security Act (42 
     U.S.C. 608(h)(2)(B)) is amended by adding at the end the 
     following:
       ``(iv) Automobile purchase or maintenance.--At the option 
     of the State, costs with respect to the purchase or 
     maintenance of an automobile.''.

     SEC. 408. PATHWAY TO SELF-SUFFICIENCY GRANTS TO IMPROVE 
                   COORDINATION OF ASSISTANCE FOR LOW-INCOME 
                   FAMILIES.

       (a) Definitions.--In this section:
       (1) Eligible applicant.--The term ``eligible applicant'' 
     means a State or local government agency or a nonprofit 
     entity.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (3) State.--The term ``State'' means each of the 50 States 
     of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, American Samoa, Guam, and the 
     United States Virgin Islands.
       (4) Support program for low-income families.--The term 
     ``support program for low-income families'' means a program 
     designed to provide low-income families and noncustodial 
     parents who need help with obtaining employment and 
     fulfilling child support obligations to children receiving 
     assistance under the temporary assistance to needy families 
     program established under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) with assistance or 
     benefits to enable the family or noncustodial parent to 
     become self-sufficient and includes--
       (A) the temporary assistance to needy families program 
     established under part A of title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.);
       (B) the food stamp program established under the Food Stamp 
     Act of 1977 (7 U.S.C. 2011 et seq.);
       (C) the medicaid program funded under title XIX of the 
     Social Security Act (42 U.S.C. 1396 et seq.);
       (D) the State children's health insurance program (SCHIP) 
     funded under title XXI of the Social Security Act (42 U.S.C. 
     1397aa et seq.);
       (E) the child care program funded under the Child Care 
     Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.);
       (F) the child support program funded under part D of title 
     IV of the Social Security Act (42 U.S.C. 651 et seq.);
       (G) the earned income tax credit under section 32 of the 
     Internal Revenue Code of 1986;
       (H) the low-income home energy assistance program (LIHEAP) 
     established under the Low-Income Home Energy Assistance Act 
     of 1981 (42 U.S.C. 8621 et seq.);
       (I) the special supplemental nutrition program for women, 
     infants, and children (WIC) established under section 17 of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786);
       (J) programs under the Workforce Investment Act of 1998 (29 
     U.S.C. 2801 et seq.);
       (K) programs supporting low-income housing assistance 
     programs; and
       (L) any other Federal, State, or locally funded program 
     designed to provide family and work support to low-income 
     families.

[[Page S9734]]

       (b) Authority To Award Grants.--
       (1) In general.--The Secretary may award grants to eligible 
     applicants to--
       (A) improve the coordination of support programs for low-
     income families and noncustodial parents described in 
     subsection (a)(4); and
       (B) conduct outreach to such families and noncustodial 
     parents to promote enrollment in such programs.
       (2) Preference.--In awarding grants under this section, the 
     Secretary shall give preference to eligible applicants that 
     include in the application submitted under subsection (c) 
     documentation demonstrating that the eligible applicant will 
     collaborate with other Federal, State, or local agencies or 
     nonprofit entities in carrying out activities under the 
     grant.
       (c) Application.--Each eligible applicant desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       (d) Annual Reports.--
       (1) In general.--The Secretary shall submit an interim and 
     final report to Congress describing the uses of grant funds 
     awarded under this section.
       (2) Dates for submission.--With respect to the reports 
     required under paragraph (1), the Secretary shall submit--
       (A) the interim report, not later than December 31, 2006; 
     and
       (B) the final report, not later than December 31, 2009.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     the period of fiscal years 2004 through 2008.
       (f) Annual Assessment of Regional Labor Markets To Target 
     Higher Entry Level Wage Opportunities in Industries 
     Experiencing Labor Shortages.--
       (1) In general.--An State to which a grant is made under 
     this section annually shall conduct an assessment of its 
     regional labor markets that includes the following:
       (A) Labor market.--The assessment shall--
       (i) identify industries or occupations that have or expect 
     growth, the loss of skilled workers, or that have a demand 
     for a subset of workers;
       (ii) identify the entry-level education and skills 
     requirements for the industries or occupations that have or 
     anticipate 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 of 
     the characteristics of the unemployed and underemployed 
     residents of the State, including educational attainment, 
     barriers to employment, geographic concentrations, and access 
     to needed support services.
       (C) Education and training infrastructure.--The assessment 
     shall create a profile of the State's available education, 
     training, and support services to prepare workers for the 
     identified industries or occupations.
       (D) Aligning industries and job seeker needs.--The 
     assessment shall compare the characteristics of the 
     identified industries or occupations to the profiles created 
     under subparagraphs (B) and (C).
       (2) Provision of information to localities.--The State 
     shall share with local political subdivisions of the State--
       (A) information regarding the existence of higher entry-
     wage job opportunities in industries experiencing labor 
     shortages; and
       (B) opportunities for collaboration with institutions of 
     higher education, community-based organizations, and economic 
     development and welfare agencies.
       (3) Data.--A State may use data available as of the date 
     the State begins an assessment under paragraph (1) to conduct 
     such assessment if such data provides the information 
     necessary to conduct the assessment described in that 
     paragraph.
       (4) Reports.--
       (A) State reports.--Each State to which a grant is made 
     under this section annually shall submit a report to the 
     Secretary that contains the assessment required under 
     paragraph (1).
       (B) Report to congress.--The Secretary annually shall 
     submit a report to Congress compiling the State reports 
     submitted under subparagraph (A).

     SEC. 409. TRANSITIONAL JOBS PROGRAMS.

       Section 403(a) (42 U.S.C. 603(a)), as amended by section 
     407(a), is amended by adding at the end the following:
       ``(8) Transitional jobs grants.--
       ``(A) Purpose.--The purpose of this paragraph is to provide 
     funding so that States and localities can create and expand 
     transitional jobs programs that--
       ``(i) combine time-limited employment that is subsidized 
     with public funds, with skill development and barrier removal 
     activities, pursuant to an individualized plan;
       ``(ii) provide job development and placement assistance to 
     individual program participants to help them move from 
     subsidized employment in transitional jobs into unsubsidized 
     employment, as well as retention services after the 
     transition to unsubsidized employment; and
       ``(iii) serve recipients of assistance under the State 
     program funded under this part and other low-income 
     individuals who have been unable to secure employment through 
     job search or other employment-related services because of 
     limited skills, experience, or other barriers to employment.
       ``(B) Limitations on use of funds.--
       ``(i) Allowable activities.--An entity to which funds are 
     provided under this paragraph shall use the funds to operate 
     transitional jobs programs consistent with the following:

       ``(I) An entity which secures a grant to operate a 
     transitional jobs program (in this subparagraph referred to 
     as a `program operator'), under this paragraph shall place 
     eligible individuals in temporary, publicly subsidized jobs. 
     Individuals placed in such jobs shall perform work directly 
     for the program operator, or at other public and nonprofit 
     organizations (in this subparagraph referred to as `worksite 
     employers') within the community. Funds provided under this 
     paragraph shall be used to subsidize 100 percent of the wages 
     paid to program participants as well as employer-paid payroll 
     costs for such participants.
       ``(II) Transitional jobs programs shall provide paid 
     employment for not less than 30, nor more than 40 hours per 
     week, except that a parent with a child under the age of 6, a 
     child who is disabled, or a child with other special needs, 
     or an individual who for other reasons cannot successfully 
     participate for 30 to 40 hours per week, may, at State 
     discretion, be allowed to participate for more limited hours, 
     but not less than 20 hours per week.
       ``(III) Program operators shall provide case management 
     services and ensure that appropriate education, training, and 
     other services are available to program participants 
     consistent with an individual plan developed for each such 
     participant.
       ``(IV) Program operators shall provide job placement 
     assistance to help program participants obtain unsubsidized 
     employment, and shall provide retention services for 12 
     months after entry into unsubsidized employment.

       ``(V) In any work week in which a program participant is 
     employed at least 30 hours, not less than 20 percent, nor 
     more than 50 percent of scheduled hours shall involve 
     participation in education or training activities designed to 
     improve the participant's employability and potential 
     earnings, or other services designed to reduce or eliminate 
     any barriers that may impede the participant's ability to 
     secure unsubsidized employment.
       ``(VI) The maximum duration of any placement in a 
     transitional jobs program shall not be less than 6 months, 
     nor more than 24 months. Nothing in this subclause shall be 
     construed to bar a program participant from moving into 
     unsubsidized employment at a point prior to the maximum 
     duration of the program. States may approve programs of 
     varying durations consistent with this subclause.
       ``(VII) Program participants shall be paid at the rate paid 
     to unsubsidized employees of the worksite employer (or 
     program operator where work is performed directly for the 
     program operator) who perform comparable work at the worksite 
     where the individual is placed. If no other employees perform 
     the same or comparable work then wages shall be set, at a 
     minimum, at 50 percent of the Lower Living Standard Income 
     Level (in this subparagraph referred to as the `LLSIL'), as 
     specified in section 101(24) of the Workforce Investment Act 
     of 1998, for a family of 3 based on 35 hours per week.
       ``(VIII) Program participants shall receive supervision 
     from the worksite employer or program operator consistent 
     with the goal of addressing the limited work experience and 
     skills of program participants.

       ``(ii) Consultation.--An application submitted by an entity 
     seeking to become a program operator shall include an 
     assurance by the applicant that the transitional jobs program 
     carried out by the applicant shall--

       ``(I) provide in the design, recruitment, and operation of 
     the program for broad-based input from the community served 
     and potential participants in the program and community-based 
     agencies with a demonstrated record of experience in 
     providing services, prospective worksite employers, local 
     labor organizations representing employees of prospective 
     worksite employers, if these entities exist in the area to be 
     served by the program, and employers, and membership-based 
     groups that represent low-income individuals; and
       ``(II) prior to the placement of program participants, 
     consult with the appropriate local labor organization, if 
     any, representing employees in the area who are engaged in 
     the same or similar work as that proposed to be carried out 
     by such program.

       ``(iii) Eligibility for other work supports.--Program 
     participants shall be eligible for subsidized child care, 
     transportation assistance, and other needed support services 
     on the same basis as other recipients of cash assistance 
     under the State program funded under this part.
       ``(iv) Wages not considered assistance.--Wages paid to 
     program participants shall not be considered to be assistance 
     for purposes of section 408(a)(7).
       ``(v) Private sector placements.--Not more than 50 percent 
     of the total number of such participants in transitional jobs 
     in a State at any time may be placed at worksite employers 
     which are private, for-profit entities.
       ``(C) General eligibility.--
       ``(i) In general.--Not less than \2/3\ of the participants 
     in a transitional jobs program funded under a grant made 
     under this paragraph during a fiscal year shall be 
     individuals who are, at the time they enter the program--

[[Page S9735]]

       ``(I) receiving assistance under the State program funded 
     under this part;
       ``(II) not receiving assistance under the State program 
     funded under this part, but who are unemployed, and who were 
     recipients of such assistance within the immediately 
     preceding 12-month period;
       ``(III) custodial parents of a minor child who meet the 
     financial eligibility criteria for assistance under the State 
     program funded under this part; or
       ``(IV) noncustodial parents with income below 150 percent 
     of the poverty line (as defined in 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).

       ``(ii) Limitation.--Not more than \1/3\ of all participants 
     in a transitional jobs program funded under this paragraph 
     during a fiscal year shall be individuals who have attained 
     at least age 18 with an income below 150 percent of the 
     poverty line (as defined in 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) who are not eligible under clause (i). An 
     individual who is an ex-offender shall be eligible to 
     participate in a transitional jobs program funded under this 
     paragraph.
       ``(iii) Methodology.--The Secretary may use any reasonable 
     methodology in calculating whether program participants 
     satisfying the requirements of clause (i), constitute \2/3\ 
     or more of all participants, and whether program participants 
     satisfying the requirements of clause (ii) constitute not 
     more than \1/3\ of all such participants in a fiscal year.
       ``(iv) Authority to provide work-related services to 
     individuals who have reached the 5-year limit.--A program 
     operator under this paragraph may use the funds to provide 
     transitional job program participation to individuals who, 
     but for section 408(a)(7), would be eligible for assistance 
     under the program funded under this part of the State in 
     which the program operator is located.
       ``(D) Relationship to other provisions of this part.--
       ``(i) Rules governing use of funds.--The provisions of 
     section 404 (other than subsection (f) thereof) shall not 
     apply to a grant made under this paragraph.
       ``(ii) Administration.--Section 416 shall not apply to the 
     programs under this paragraph.
       ``(iii) Prohibition against use of grant funds for any 
     other fund matching requirement.--An entity to which funds 
     are provided under this paragraph shall not use any part of 
     the funds to fulfill any obligation of any State or political 
     subdivision under subsection (b) or section 418 or any other 
     provision of this Act or other Federal law.
       ``(iv) Deadline for expenditure.--An entity to which funds 
     are provided under this paragraph shall remit to the 
     Secretary of Labor any part of the funds that are not 
     expended within 3 years after the date on which the funds are 
     so provided.
       ``(v) Regulations.--Within 90 days after the date of 
     enactment of this paragraph, the Secretary of Labor, after 
     consultation with the Secretary of Health and Human Services, 
     shall prescribe such regulations as may be necessary to 
     implement this paragraph.
       ``(vi) Reporting requirements.--The Secretary of Labor, in 
     consultation with the Secretary of Health and Human Services, 
     shall establish requirements for the collection and 
     maintenance of financial and program participant information 
     and the reporting of such information by entities carrying 
     out activities under this paragraph. Such reporting 
     requirements shall include, at a minimum, that States report 
     disaggregated data on individual program participants that 
     include the following:

       ``(I) Demographic information about the program participant 
     including education level, literacy level, and prior work 
     experience.
       ``(II) Identity of the program operator that provides or 
     provided services to the program participant, and the 
     duration of participation.
       ``(III) The nature of education, training or other services 
     received by the program participant.
       ``(IV) Reasons for the program participant's leaving the 
     program.
       ``(V) Whether the program participant secured unsubsidized 
     employment during or within 60 days after the employment of 
     the participant in a transitional job, and if so, details 
     about the participant's unsubsidized employment including 
     industry, occupation, starting wages and hours, and 
     availability of employer sponsored health insurance and sick 
     and vacation leave.

       ``(vii) Additional reporting requirements.--States shall 
     collect and report followup data for a sampling of program 
     participants reflecting their employment and earning status 
     12 months after entering unsubsidized employment.
       ``(E) National competitive grants.--
       ``(i) In general.--The Secretary of Labor shall award 
     grants in accordance with this paragraph, in fiscal years 
     2003 through 2007, for transitional jobs programs proposed by 
     eligible applicants, based on the following:

       ``(I) The extent to which the proposal seeks to provide 
     services in multiple sites that include sites in more than 1 
     State.
       ``(II) The extent to which the proposal seeks to provide 
     services in a labor market area or region that includes 
     portions of more than 1 State.
       ``(III) The extent to which the proposal seeks to provide 
     transitional jobs in a State.
       ``(IV) The extent to which the applicant proposes to 
     provide transitional jobs in either rural areas or areas 
     where there are a high concentration of residents with income 
     that is less than the poverty line.
       ``(V) The effectiveness of the proposal in helping 
     individuals who are least job ready move into unsubsidized 
     jobs that provide pathways to stable employment and livable 
     wages.

       ``(ii) Eligible applicants.--In this paragraph, the term 
     `eligible applicant' means--

       ``(I) a Workforce Investment Board for a local workforce 
     area in a State;
       ``(II) a political subdivision of a State;
       ``(III) a State;
       ``(IV) an Indian tribe; or
       ``(V) a private entity.

       ``(iii) Funding.--Subject to subparagraphs (F) and (G), of 
     the amount appropriated in subparagraph (H) for a fiscal 
     year, $25,000,000 of such amount shall be used to make grants 
     under this paragraph for that fiscal year.
       ``(F) Funding for indian tribes.--1.5 percent of the amount 
     appropriated in subparagraph (H) for each fiscal year shall 
     be reserved for grants to Indian tribes.
       ``(G) Funding for evaluations of transitional jobs 
     programs.--1.5 percent of the amount appropriated in 
     subparagraph (H) for each fiscal year shall be reserved for 
     use by the Secretary to carry out subparagraph (I).
       ``(H) Appropriations.--
       ``(i) In general.--Out of any money in the Treasury of the 
     United States not otherwise appropriated, there are 
     appropriated for grants under this paragraph, $25,000,000 for 
     each of fiscal years 2004 through 2008.
       ``(ii) Availability.--The amounts made available pursuant 
     to clause (i) shall remain available for such period as is 
     necessary to make the grants provided for in this paragraph.
       ``(I) Evaluation of transitional jobs programs.--The 
     Secretary, in consultation with the Secretary of Labor--
       ``(i) shall develop a plan to evaluate the extent to which 
     transitional jobs programs funded under this paragraph have 
     been effective in promoting sustained, unsubsidized 
     employment for each group of eligible participants;
       ``(ii) may evaluate the use of such grants by such 
     grantees/ as the Secretary deems appropriate, in accordance 
     with an agreement entered into with the grantees after good-
     faith negotiations; and
       ``(iii) should include the following outcome measures in 
     the plan developed under clause (i):

       ``(I) Placements in unsubsidized employment.
       ``(II) Placements in unsubsidized employment that last for 
     at least 12 months, and the extent to which individuals are 
     employed continuously for at least 12 months.
       ``(III) Earnings of individuals who obtain employment at 
     the time of placement.
       ``(IV) Earnings of individuals 1 year after placement.
       ``(V) The occupations and industries in which wage growth 
     and retention performance is greatest.
       ``(VI) Average expenditures per participant.''.

     SEC. 410. GAO STUDY ON IMPACT OF BAN ON SSI BENEFITS FOR 
                   LEGAL IMMIGRANTS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study to determine the impact of the 
     prohibition under section 402 of the Personal Responsibility 
     and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612) with respect to the eligibility of qualified aliens (as 
     defined in section 431 of such Act (8 U.S.C. 1641)) for 
     benefits under the supplemental security income program under 
     title XVI of the Social Security Act (42 U.S.C. 1381 et 
     seq.), including supplementary payments pursuant to an 
     agreement for Federal administration under section 1616(a) of 
     such Act (42 U.S.C. 1382e) and payments pursuant to an 
     agreement entered into under section 212(b) of Public Law 93-
     66.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit a 
     report to Congress on the study conducted under subsection 
     (a) that includes such recommendations for legislative action 
     as the Comptroller General determines appropriate.

     SEC. 411. ENSURING TANF FUNDS ARE NOT USED TO DISPLACE PUBLIC 
                   EMPLOYEES; APPLICATION OF WORKPLACE LAWS TO 
                   WELFARE RECIPIENTS.

       (a) Welfare-to-Work Worker Protections.--
       (1) In general.--Section 403(a)(5)(I) (42 U.S.C. 
     603(a)(5)(I)) is amended--
       (A) by striking clauses (i) and (iv);
       (B) by redesignating clauses (v) and (vi) as clauses (iv) 
     and (v), respectively; and
       (C) by inserting before clause (ii), the following:
       ``(i) Nondisplacement.--

       ``(I) In general.--An adult in a family receiving 
     assistance under a State program funded under this part, in 
     order to engage in a work activity, shall not displace any 
     employee or position (including partial displacement, such as 
     a reduction in the hours of nonovertime work, wages, or 
     employment benefits) or fill any unfilled vacancy.
       ``(II) Prohibitions.--A work activity engaged in under a 
     program operated with funds provided under this paragraph 
     shall not impair any existing contract for services, be 
     inconsistent with any existing law, regulation, or collective 
     bargaining agreement, or infringe upon the recall rights or 
     promotional opportunities of any worker.

[[Page S9736]]

       ``(III) No supplanting of other hires.--A work activity 
     engaged in under a program operated with funds provided under 
     this paragraph shall be in addition to any activity that 
     otherwise would be available and shall not supplant the 
     hiring of an employed worker not funded under such program.
       ``(IV) Enforcing antidisplacement protections.--

       ``(aa) In general.--The State shall establish and maintain 
     an impartial grievance procedure to resolve any complaints 
     alleging violations of the requirements of subclause (I), 
     (II), or (III) within 60 days of receipt of the complaint 
     and, if a decision is adverse to the party who filed such 
     grievance or no decision has been reached, provide for the 
     completion of an arbitration procedure within 75 days of 
     receipt of the complaint or the adverse decision or 
     conclusion of the 60-day period, whichever is earlier.
       ``(bb) Appeals.--Appeals may be made to the Secretary who 
     shall make a decision within 75 days.
       ``(cc) Remedies.--Remedies for a violation of the 
     requirements of subclause (I), (II), or (III) shall include 
     termination or suspension of payments, prohibition of the 
     placement of the participant, reinstatement of an employee, 
     and other relief to make an aggrieved employee whole.
       ``(dd) Limitation on placement.--If a grievance is filed 
     regarding a proposed placement of a participant, such 
     placement shall not be made unless such placement is 
     consistent with the resolution of the grievance pursuant to 
     this subclause.''.
       (2) State plan requirement.--Section 402(a)(1)(A) (42 
     U.S.C. 602(a)(1)(A)) is amended by adding at the end the 
     following:
       ``(vii) In the case of a State that receives a welfare-to-
     work grant under section 403(a)(5), ensure compliance with 
     the nondisplacement requirements of subparagraph (I)(i) of 
     that section.''.
       (b) Application of Workplace Laws to Welfare Recipients.--
     Notwithstanding any other provision of law, workplace laws, 
     including the Fair Labor Standards Act of 1938 (29 U.S.C. 201 
     et seq.), the Occupational Safety and Health Act of 1970 (29 
     U.S.C. 651 et seq.), title VII of the Civil Rights Act of 
     1964 (42 U.S.C. 2000e et seq.), and the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), shall 
     apply to an individual who is a recipient of assistance under 
     the temporary assistance to needy families program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.) in the same manner as such laws apply to 
     other workers. The fact that an individual who is a recipient 
     of assistance under the temporary assistance to needy 
     families program is participating in, or seeking to 
     participate in work activities under that program in 
     satisfaction of the work activity requirements of the 
     program, shall not deprive the individual of the protection 
     of any Federal, State, or local workplace law.

     SEC. 412. DATA COLLECTION AND REPORTING.

       Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended in 
     the matter preceding clause (i), by striking ``(except for 
     information relating to activities carried out under section 
     403(a)(5))'' and inserting `` (and in complying with this 
     requirement, the Secretary shall require not more than 10 
     States to ensure that the following case record information 
     is reported in a manner that permits analysis of such 
     information by race, ethnicity or national origin, primary 
     language, gender, and educational level, including analysis 
     using a combination of these factors, and shall submit an 
     annual report to Congress containing such data)''.

                         TITLE V--MISCELLANEOUS

     SEC. 501. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided, the 
     amendments made by this Act shall take effect on the date of 
     enactment of this Act, and shall apply to payments under 
     parts A and D of title IV of the Social Security Act for 
     calendar quarters beginning on or after such date, 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) or 454 of the 
     Social Security Act (42 U.S.C. 602(a), 654) 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) or 454 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.
                                 ______
                                 
      By Mr. HARKIN:
  S. 1444. A bill to amend the Head Start Act to increase the 
reservation of funds for programs for low-income families with very 
young children, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. HARKIN. Mr. President, most Americans are very familiar with Head 
Start. This popular preschool program was created in 1965 to provide 
education, health, nutrition and family support services to low-income, 
4- and 5-year old children. Head Start enjoys strong bipartisan support 
and is widely recognized as a success.
  In response to the growing body of research about the critical 
development which occurs during the first 3 years of a child's life, 
Head Start was expanded in 1995 to serve infants and toddlers. The 
Early Head Start Program provides comprehensive child development and 
family support services to infants and toddlers from birth through age 
3 and pregnant women. Currently, 10 percent of Head Start funds are set 
aside for Early Head Start. An estimated 60,000 children currently 
receive services nationwide. In Iowa, 1,259 children are served by 
Early Head Start.
  Numerous research findings, including a 7-year national evaluation, 
show that Early Head Start is a success. Early Head Start made positive 
impacts in children's cognitive, language, and social-emotional 
development. It was also found that compared to a control group, 
parents in Early Head Start not only read to their children more often 
but also provided additional resources to support greater language and 
literacy development.
  These types of outcomes for our Nation's most vulnerable infants and 
toddlers are tremendous considering how critical the early years are 
for children's development. Data from the National Academy of Sciences 
shows that the first 3 years of a child's life are the most important--
80 percent of brain development occurs by age 3. Children have 
unlimited potential to learn many things during this critical time. 
Research conducted over the last several years shows how important it 
is for parents to read to their young children, talk with them, and 
stimulate learning through play. Children who do not have enriched 
learning experiences during these important years can be stunted for 
life. Babies and toddlers living in high-risk environments need 
additional supports to foster necessary intellectual, social, and 
emotional development that lays the foundation for later success in 
school and life.
  Early Head Start provides this proven effective, targeted care, yet 
only 3 percent of those eligible are being served. As a result, today I 
am introducing legislation that would increase the current set-aside to 
20 percent in 2008--to double the number of participants.
  Investments in early intervention programs must become a national 
priority. This is the right thing to do for the young children of our 
Nation, but it is also the most cost-effective thing for us to do. 
Every dollar invested in quality pre-school programs saves $7 in future 
costs for special education, welfare or corrections.
  In 1991, the Committee for Economic Development, CED, called on the 
Nation to rethink how we view education. This group of business leaders 
urged Federal policy makers to view education as a process that begins 
at birth, with preparations beginning before birth. I strongly support 
this objective and have always been a strong advocate in early 
intervention activities such as Head Start, the WIC nutrition program 
and early intervention programs for infants and toddlers with 
disabilities.

  We must dedicate ourselves to making the CED vision a reality and 
build a strong foundation for education in this country. That begins 
with ensuring that all children get off to a good, strong start and 
enter school ready to learn.
  The legislation I am introducing today takes another step toward 
building this foundation by doubling the set-aside for the Early Head 
Start Program for children ages zero to three by the year 2008. This 
action will continue to improve access to education and development 
services for our youngest children to provide a good start in life. I 
urge my colleagues to support this legislation.

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