[Congressional Record Volume 153, Number 106 (Thursday, June 28, 2007)]
[Senate]
[Pages S8700-S8703]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH (for himself, Mr. Conrad, Ms. Stabenow, Ms. Snowe, 
        and Ms. Collins):
  S. 1730. A bill to amend part A of title IV of the Social Security 
Act, to reward States for engaging individuals with disabilities in 
work activities, and for other purposes; to the Committee on Finance.
  Mr. SMITH. Mr. President, I rise today to introduce Pathways to 
Independence Act of 2007, along with Senators Conrad, Stabenow, Snowe, 
and Collins. This legislation includes two important provisions that 
will help States transition Temporary Assistance for Needy Fami1ies, 
TANF, recipients who have disabilities into work.
  States currently face a conflict between the new Federal TANF 
requirements, as reauthorized by the Deficit Reduction Act of 2006, 
DRA, and the nondiscrimination requirements of the Americans with 
Disabilities Act. In order to comply with the ADA, States must make 
modifications to the work requirements they impose on TANF recipients 
with disabilities to ensure that they can participate in the program 
and move toward gainful employment. However, under new Federal TANF 
rules, States only get credit when recipients participate in a narrow 
set of activities for a specific number of hours each week, with 
limited flexibility for people with disabilities.
  Our legislation would allow States to create modified employability 
plans for people with disabilities and get credit toward the TANF 
participation rate if

[[Page S8701]]

recipients comply with the requirements in those plans. This would 
encourage States to engage people with disabilities in appropriate 
employment-focused activities without fear of facing Federal penalties 
for not meeting their TANF work rates. The bill also would allow states 
To exclude people with pending SSI applications and severe temporary 
disabilities from the work rates.
  This legislation allows states to receive full credit when a modified 
employability plan is developed for a family that includes a person 
with a disability. The bill requires States that receive credit for 
families on their caseload with modified employability plans to submit 
annual reports to the Department of Health and Human Services, HHS, on 
the types of modifications made and disabled populations served. It 
also requires HHS to compile this information and send an annual report 
to Congress.
  This approach is appealing to States for many reasons. It allows 
States to design a system and receive credit for moving a person 
progressively over time from rehabilitation toward work. It also 
creates a more realistic work structure for individuals with 
disabilities and/or addictions who otherwise may fall out of the system 
either through sanction or discouragement, despite their need for 
financial assistance.
  In July 2002, the General Accounting Office reported that as many as 
44 percent of TANF families have a parent or child with a physical or 
mental impairment. This is almost three times higher than the rate 
among the non-TANF population in the United States. In 8 percent of 
TANF families, there is both a parent and a child with a disability; 
among non-TANF families, this figure is 1 percent. The GAO's work 
confirmed the findings of earlier studies, including work by the Urban 
Institute and the HHS Inspector General.
  These figures mean that we need to make sure that the TANF program 
gives States the ability and incentives to serve families in their TANF 
programs and help them to move from welfare to work. This is the lesson 
that Oregon and many other States already have learned when they 
developed and refined their TANF programs.
  Most individuals with disabilities who receive TANF are able to 
engage in work activities and move toward employment, and many will 
either need no modifications to standard work activities or only minor 
modifications. Those with more serious conditions may need more 
intensive services and more significant adjustment to the basic work 
requirements. Under the bill, a qualified professional must make a 
determination that an individual has a disability and the state must 
document the types of modifications, if any, that the individual needs 
to succeed in moving toward employment.
  Our bill proposes the creation of a more appropriate path for those 
who have disabling conditions, both short- and long-term, recognizing 
the barriers many of these families face both financially and 
emotionally. The current strategy of rapid employment for all TANF 
recipients is not always feasible. This bill will help families with 
disabilities achieve and maintain stability during the transition from 
welfare to becoming more financially secure and independent of 
Government assistance.
  Over 20 individual States, including Oregon, and the National 
Governors Association, representing all 50 States and five territories 
have identified problems with how the current rules affect their 
ability to serve individuals with disabilities appropriately and meet 
the TANF work requirements. They have asked for modifications to the 
new TANF requirements like the ones proposed in our bill.
  I look forward to working with my cosponsors, Senators Conrad, 
Stabenow, Snowe, and Collins on these important provisions, and I urge 
my colleagues to join us in support of this legislation.
  I ask unanimous consent that the text of the bill and letters of 
support be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

       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 ``Pathways to Independence Act 
     of 2007''.

     SEC. 2. AUTHORIZATION OF MODIFIED EMPLOYABILITY PLAN FOR 
                   INDIVIDUALS WITH DISABILITIES.

       (a) In General.--Section 407(c)(2) of the Social Security 
     Act (42 U.S.C. 607(c)(2)) is amended by adding at the end the 
     following new subparagraph:
       ``(E) Individuals with disabilities complying with a 
     modified employability plan deemed to be meeting work 
     participation requirements.--
       ``(i) Modified employability plan.--A State may develop a 
     modified employability plan for an adult or minor child head 
     of household recipient of assistance who has been determined 
     by a qualified medical, mental health, addiction, or social 
     services professional (as determined by the State) to have a 
     disability, or who is caring for a family member with a 
     disability (as so determined). The modified employability 
     plan shall--

       ``(I) include a determination that, because of the 
     disability of the recipient or the individual for whom the 
     recipient is caring, reasonable modification of work 
     activities, hourly participation requirements, or both, is 
     needed in order for the recipient to participate in work 
     activities;
       ``(II) set forth the modified work activities in which the 
     recipient is required to participate;
       ``(III) set forth the number of hours per week for which 
     the recipient is required to participate in such modified 
     work activities based on the State's evaluation of the 
     family's circumstances;
       ``(IV) set forth the services, supports, and modifications 
     that the State will provide to the recipient or the 
     recipient's family;
       ``(V) be developed in cooperation with the recipient; and
       ``(VI) be reviewed not less than every 6 months.

       ``(ii) Inclusion in monthly participation rates.--For the 
     purpose of determining monthly participation rates under 
     subsection (b)(1)(B)(i), and notwithstanding paragraphs (1), 
     (2)(A), (2)(B), (2)(C), and (2)(D) of this subsection and 
     subsection (d) of this section, a recipient is deemed to be 
     engaged in work for a month in a fiscal year if--

       ``(I) the State has determined that the recipient is in 
     substantial compliance with activities and hourly 
     participation requirements set forth in a modified 
     employability plan that meets the requirements set forth in 
     clause (i); and
       ``(II) the State complies with the reporting requirement 
     set forth in clause (iii) for the fiscal year in which the 
     month occurs.

       ``(iii) Reports.--

       ``(I) Report by state.--With respect to any fiscal year for 
     which a State counts a recipient as engaged in work pursuant 
     to a modified employability plan, the State shall submit a 
     report entitled `Annual State Report on TANF Recipients 
     Participating in Work Activities Pursuant to Modified 
     Employability Plans Due to Disability' to the Secretary not 
     later than March 31 of the succeeding fiscal year. The report 
     shall provide the following information:

       ``(aa) The aggregate number of recipients with modified 
     employability plans due to a disability.
       ``(bb) The percentage of all recipients with modified 
     employability plans who substantially complied with 
     activities set forth in the plans each month of the fiscal 
     year.
       ``(cc) Information regarding the most prevalent types of 
     physical and mental impairments that provided the basis for 
     the disability determinations.
       ``(dd) The percentage of cases with a modified 
     employability plan in which the recipient had a disability, 
     was caring for a child with a disability, or was caring for 
     another family member with a disability.
       ``(ee) A description of the most prevalent types of 
     modification in work activities or hours of participation 
     that were included in the modified employability plans.
       ``(ff) A description of the qualifications of the staff who 
     determined whether individuals had a disability, of the staff 
     who determined that individuals needed modifications to their 
     work requirements, and of the staff who developed the 
     modified employability plans.

       ``(II) Report by secretary.--The Secretary shall submit an 
     annual report to Congress entitled `Efforts in State TANF 
     Programs to Promote and Support Employment for Individuals 
     with Disabilities' not later than July 31 of each fiscal year 
     that includes information on State efforts to engage 
     individuals with disabilities in work activities for the 
     preceding fiscal year. The report shall include the 
     following:

       ``(aa) The number of individuals for whom each State has 
     developed a modified employability plan.
       ``(bb) The types of physical and mental impairments that 
     provided the basis for the disability determination, and 
     whether the individual with the disability was an adult 
     recipient or minor child head of household, a child, or a 
     non-recipient family member.
       ``(cc) The types of modifications that States have included 
     in modified employability plans.
       ``(dd) The extent to which individuals with a modified 
     employability plan are participating in work activities.
       ``(ee) An analysis of the extent to which the option to 
     establish such modified employability plans was a factor in 
     States' achieving or not achieving the minimum participation 
     rates under subsection (a) for the fiscal year.
       ``(iv) Definitions.--

[[Page S8702]]

       ``(I) Disability.--For purposes of this subparagraph, the 
     term `disability' means a mental or physical impairment, 
     including substance abuse or addiction, that--

       ``(aa) constitutes or results in a substantial impediment 
     to employment; or
       ``(bb) substantially limits 1 or more major life 
     activities.

       ``(II) Modified work activities.--For purposes of this 
     subparagraph, the term `modified work activities' means 
     activities the State has determined will help the recipient 
     become employable and which are not subject to and do not 
     count against the limitations and requirements under the 
     preceding provisions of this subsection and of subsection 
     (d).''.

       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007.

     SEC. 3. STATE OPTION TO EXCLUDE SSI APPLICANTS IN WORK 
                   PARTICIPATION RATE.

       (a) In General.--Section 407(b)(5) of the Social Security 
     Act (42 U.S.C. 607(b)(5)) is amended by striking ``at its 
     option, not require an individual'' and all that follows and 
     inserting ``at its option--
       ``(A) not require an individual who is a single custodial 
     parent caring for a child who has not attained 12 months of 
     age to engage in work, and may disregard such an individual 
     in determining the participation rates under subsection (a) 
     of this section for not more than 12 months;
       ``(B) disregard for purposes of determining such rates for 
     any month, on a case-by-case basis, an individual who is an 
     applicant for or a recipient of supplemental security income 
     benefits under title XVI or of social security disability 
     insurance benefits under title II, if--
       ``(i) the State has determined that an application for such 
     benefits has been filed by or on behalf of the individual;
       ``(ii) the State has determined that there is a reasonable 
     basis to conclude that the individual meets the disability or 
     blindness criteria applied under title II or XVI;
       ``(iii) there has been no final decision (including a 
     decision for which no appeal is pending at the administrative 
     or judicial level or for which the time period for filing 
     such an appeal has expired) denying benefits; and
       ``(iv) not less than every 6 months, the State reviews the 
     status of such application and determines that there is a 
     reasonable basis to conclude that the individual continues to 
     meet the disability or blindness criteria under title II or 
     XVI; and
       ``(C) disregard for purposes of determining such rates for 
     any month, on a case-by-case basis, an individual who the 
     State has determined would meet the disability criteria for 
     supplemental security income benefits under title XVI or 
     social security disability insurance benefits under title II 
     but for the requirement that the disability has lasted or is 
     expected to last for a continuous period of not less than 12 
     months.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2007.
                                  ____



                                        Mental Health America,

                                    Alexandria, VA, June 28, 2007.
     Hon. Gordon Smith,
     Hon. Debbie Stabenow,
     Hon. Susan Collins,
     Hon. Kent Conrad,
     Hon. Olympia Snowe,
     U.S. Senate,
     Washington, DC.
       Dear Senators Smith, Conrad, Stabenow, Snowe, and Collins: 
     I am writing to commend you for introducing the ``Pathways to 
     Independence Act of 2007''. This legislation will enable 
     States to engage individuals with mental health and substance 
     use conditions in programs to help them successfully move 
     from welfare to work.
       Mental Health America is dedicated to helping all people 
     live mentally healthier lives. Our network of over 320 State 
     and local affiliates nationwide includes advocates, consumers 
     of mental health services, family members of consumers, 
     providers of mental health care, and other concerned 
     citizens--all dedicated to improving mental health care and 
     promoting mental wellness.
       A large percentage of individuals who need and rely on the 
     Temporary Assistance for Needy Families (TANF) program have 
     significant mental health conditions and substance use 
     disorders. Studies indicate that one-fourth to one-third of 
     TANF recipients has serious mental health conditions, and 
     some studies show that up to one-fifth of TANF recipients 
     have substance use disorders. Moreover, more than one-fifth 
     have learning disabilities and more than one-fifth have 
     physical impairments. As you know, these rates are well above 
     those for the general population and indicate a pressing need 
     for access to care.
       We are very concerned about changes made to the TANF 
     program in reauthorizing legislation included in the Deficit 
     Reduction Act (DRA). Individuals with mental health 
     conditions, substance use disorders, or other disabling 
     conditions will need assistance meeting the work requirements 
     of the TANF program that were significantly tightened by the 
     DRA. However, the regulations issued by the Department of 
     Health and Human Services implementing the new DRA 
     requirements provide such narrow definitions of the types of 
     activities that can count toward a state's work participation 
     rate (which determines Federal funding), we fear States will 
     be discouraged from providing the services these individuals 
     need in order to be engaged in the program and able to work. 
     We are particularly alarmed that States are only allowed to 
     count individuals receiving mental health or substance abuse 
     treatment or rehabilitation activities as job readiness 
     activities for 4 consecutive weeks and 6 weeks total per year 
     before requiring that these individuals be engaged in full-
     time employment.
       States are required under the Americans with Disabilities 
     Act (ADA) and Section 504 of the Rehabilitation Act of 1973 
     (Rehab Act) to make modifications to Federal programs, 
     including TANF, to enable individuals with disabilities to 
     participate. However, if States provide ADA-required 
     modifications to the work requirements for individuals with 
     disabilities, including those with serious mental health 
     conditions, they may not meet their work participation rates 
     even if these TANF recipients are actively engaged in 
     activities designed to help them secure full-time jobs.
       Your bill would give States the flexibility they need in 
     order to fully engage individuals with serious mental health 
     conditions or substance use disorders in activities designed 
     to move them successfully into employment. Specifically, your 
     bill would allow States to develop ``modified employability 
     plans'' for TANF recipients who are determined by qualified 
     medical, mental health, or social services professionals 
     either to have a disability or to be caring for a family 
     member with a disability. These provisions would also enable 
     States to meet the ADA and Rehab Act requirements to provide 
     reasonable accommodations to these families without losing 
     Federal TANF funds.
       We greatly appreciate your on-going leadership in working 
     to ensure that individuals with mental health conditions, 
     substance use disorders, and other disabling conditions are 
     able to fully participate in and benefit from the TANF 
     program. We look forward to working with you toward swift 
     enactment of the ``Pathways to Independence Act of 2007''.
           Sincerely,
                                                      David Shern,
                                                  President & CEO.
                                      Consortium for Citizens with


                                                 Disabilities,

                                    Washington, DC, June 28, 2007.
     Hon. Gordon Smith,
     Hon. Debbie Stabenow,
     Hon. Susan Collins,
     Hon. Kent Conrad,
     Hon. Olympia Snowe,
     U.S. Senate,
     Washington, DC.
       Dear Senators Smith, Conrad, Stabenow, Snowe, and Collins: 
     We are writing to thank you for introducing legislation that 
     will allow States to more effectively serve families that 
     include a person with a disability in the Temporary 
     Assistance to Needy Families (TANF) program. We believe this 
     legislation, if enacted, will significantly improve the 
     ability of States to help families successfully move from 
     welfare toward work while also ensuring that the needs of 
     family members with disabilities are met. The undersigned 
     organizations enthusiastically support this legislation.
       The Consortium for Citizens with Disabilities (CCD) is a 
     coalition of national consumer, advocacy, provider and 
     professional organizations headquartered in Washington, DC. 
     We work together to advocate for national public policy that 
     ensures the self determination, independence, empowerment, 
     integration, and inclusion of children and adults with 
     disabilities in all aspects of society. The CCD TANF Task 
     Force seeks to ensure that families that include persons with 
     disabilities are afforded equal opportunities and appropriate 
     accommodations under the TANF block grant.
       Congress explicitly stated in the Personal Responsibility 
     and Work Opportunity Reconciliation Act that, in implementing 
     TANF, States are to comply with the Americans with 
     Disabilities Act (ADA) and Section 504 of the Rehabilitative 
     Services Act of 1973. The expectation, therefore, is that 
     States will provide individualized treatment and an effective 
     and meaningful opportunity to fully participate in the 
     program. To achieve this, States must provide appropriate 
     services, modify as necessary policies, practices, and 
     procedures, and adopt non-discriminatory methods of 
     administering the program. This expectation is also conveyed 
     in guidance to the States issued by the Office of Civil 
     Rights in the Department of Health and Human Services.
       Under the Deficit Reduction Act (DRA), Congress 
     reauthorized the TANF block grant program. The legislation 
     retained States' obligation to comply fully with the ADA and 
     Section 504 of the Rehabilitation Act of 1973, as amended 
     while hindering States' ability to fully engage families that 
     include a person with a disability. The DRA effectively 
     increases the work participation rate for the TANF program 
     and imposes penalties on States that fail to meet the 
     participation rates. It does not allow States to receive 
     credit toward the work participation rate for families whose 
     employability plan has been modified to accommodate a person 
     with a disability. It fails to ensure that States receive 
     adequate credit for providing rehabilitative services to 
     parents with disabilities to help them prepare for a 
     successful transition to work. In short, existing policies do 
     not provide States with credit for offering appropriate 
     accommodation and services to families that include a person 
     with a disability. Instead it increases the likelihood States 
     offering such accommodations and services that ``do not 
     count'' will face financial penalties.

[[Page S8703]]

       HHS received comments from TANF administrators across the 
     country who argued that the TANF provisions adopted under the 
     DRA and reflected in HHS interim regulations severely impedes 
     their ability to appropriately serve families that include a 
     person with a disability. In a letter to Secretary Leavitt in 
     response to the interim proposed regulations, the National 
     Governor's Association stated that:
       Governors continue to believe that States should have 
     maximum flexibility in receiving credit for key 
     rehabilitative and supportive services such as substance 
     abuse, behavioral/mental health and domestic violence 
     treatments in one or more work activity. These services are 
     an imperative part of moving recipients, with barriers, to 
     work and retaining employment. States need credit for these 
     services in work activities that are fully countable for all 
     hours of participation without time limit.
       We believe your legislation provides appropriate 
     flexibility for families who require accommodation due to a 
     disability. Under this bill, States will receive credit, not 
     face penalties, for investing in the supports necessary to 
     help individuals with disabilities succeed in the labor 
     market and achieve a higher degree of self-reliance. The 
     flexibility provided in this bill can improve the overall 
     performance of the TANF program by helping families at 
     greatest risk move toward employment. To date, studies have 
     demonstrated that a disproportionate number of families who 
     exit the program without employment or other sources of 
     financial assistance include a person with a disability. 
     States can and must serve these families better and Congress 
     should provide them with the tools to do so by supporting 
     this legislation.
       Thank you again for introducing this legislation and your 
     leadership on this very important issue. We are grateful for 
     your leadership on behalf of families that include an adult 
     or child with a disability. We look forward to working with 
     you and your staffs to ensure that this provision becomes 
     law.
           Sincerely,
       American Dance Therapy Association.
       American Music Therapy Association.
       American Association on Intellectual & Developmental 
     Disabilities.
       American Psychological Association.
       Association of University Centers on Disabilities (AUCD).
       Bazelon Center for Mental Health Law.
       Easter Seals, Inc.
       Epilepsy Foundation.
       Goodwill Industries International, Inc.
       Learning Disabilities Association of America.
       Mental Health America.
       National Alliance on Mental Illness.
       National Alliance to End Homelessness.
       National Association of Councils on Developmental 
     Disabilities.
       National Association of County Behavioral Health and 
     Developmental Disability Directors.
       National Association of State Directors of Special 
     Education.
       National Association of State Head Injury Administrators.
       National Association of State Mental Health Program 
     Directors.
       National Council for Community Behavioral Healthcare.
       National Disability Rights Network.
       The Arc of the United States.
       United Cerebral Palsy.
       United Spinal Association.
                                 ______