[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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