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108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                      108-9

======================================================================



 
 PROVIDING FOR CONSIDERATION OF H.R. 4, PERSONAL RESPONSIBILITY, WORK, 
                    AND FAMILY PROMOTION ACT OF 2003

                                _______
                                

 February 12, 2003.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

Ms. Pryce of Ohio, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 69]

    The Committee on Rules, having had under consideration 
House Resolution 69, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of H.R. 4, 
the Personal Responsibility, Work and Family Promotion Act of 
2003, under a modified closed rule. The rule waives all points 
of order against consideration of the bill.
    The rule provides two hours of general debate, with 50 
minutes equally divided and controlled by the chairman and 
ranking minority member of the Committee on Ways and Means, 40 
minutes equally divided and controlled by the chairman and 
ranking minority member of the Committee on Education and the 
Workforce, and 30 minutes equally divided and controlled by the 
chairman and ranking minority member of the Committee on Energy 
and Commerce. The rule provides that the bill shall be 
considered as read for amendment.
    The rule makes in order only those amendments printed in 
this report, which may be offered only in the order printed in 
this report, may be offered only by a Member designated in this 
report, shall be considered as read, shall be debatable for the 
times specified in this report equally divided and controlled 
by the proponent and an opponent, and shall not be subject to 
amendment.
    The rule waives all points of order against the amendments 
printed in the report, except that the adoption of an amendment 
in the nature of a substitute shall constitute the conclusion 
of consideration of the bill for amendment.
    Finally, the rule provides one motion to recommit with or 
without instructions.

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee record vote No. 2

    Date: February 12, 2003.
    Measure: H.R. 4.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order the amendment offered 
by Representative Jackson-Lee, which would grant states the 
option to waive the 5 year ineligibility of qualified aliens 
for benefits under TANF.
    Results: Defeated 1 to 6.
    Vote by Members: Linder--Nay; Pryce--Nay; Hastings (WA)--
Nay; Myrick--Nay; Reynolds--Nay; McGovern--Yea; Dreier--Nay.

                SUMMARY OF THE AMENDMENTS MADE IN ORDER

    (Summaries derived from information provided by amendment 
sponsor.)
    1. Kucinich/Lee/McGovern/Lantos--Amendment in the nature of 
a substitute. Adds poverty reduction as a purpose of TANF and 
provides states with a poverty reduction bonus. Increases the 
block grant by inflation. Maintains current work requirements. 
Removes the cap on the number of recipients who can pursue 
vocational education. Lifts the time limit on education to give 
recipients an opportunity to earn a degree. Provides $20 
billion for the Child Care Development Block Grant. Requires 
states to address barriers to work, including domestic 
violence, by providing for trained caseworkers to screen 
recipients. Restores eligibility to immigrants. (40 minutes)
    2. Cardin/Kind/Woolsey--Amendment in the nature of a 
substitute. Expands state flexibility to provide training and 
education to welfare recipients (such activities would count 
for up to 24 months against a state's participation 
requirement). Increases to 70% the number of welfare recipients 
that are required to be engaged in work-related activities 
(including education and training). Provides states with an 
employment credit that would reduce a state's participation 
requirement according to the number of welfare recipients that 
have left welfare for work over the last six months. Maintains 
the current-law requirement on total participation hours (30 
per week with a State option to go higher) with a requirement 
that 24 hours be in core activities. Maintains the current 20-
hour requirement for mothers. Maintains the current five-year 
time limit on TANF benefits. Increases mandatory funding for 
child care by $11 billion over the next five years and 
increases TANF for inflation. Removes various barriers to 
serving legal immigrants, including the current ban on states 
providing federally-funded TANF benefits to immigrant families. 
Includes reducing poverty and increasing self-sufficiency as a 
new purpose of the TANF program and provides financial bonuses 
to states reducing child poverty. (40 minutes)

                  TEXT OF THE AMENDMENTS MADE IN ORDER

 1. An Amendment To Be Offered by Representative Kucinich of Ohio, or 
                 His Designee, Debatable for 40 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Patsy Mink Memorial TANF 
Reauthorization Act''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
Sec. 4. Amendment of Social Security Act.

                       TITLE I--GENERAL PROVISIONS

Sec. 101. Purposes.
Sec. 102. State plan.
Sec. 103. Funding.
Sec. 104. Use of funds.

                       TITLE II--WORK REQUIREMENTS

Sec. 201. Reduced work requirement for parents of school-age children 
          who cannot find adequate child care.
Sec. 202. Conforming the number of weeks to the unemployment insurance 
          compensation standard.
Sec. 203. Revision of work activities.
Sec. 204. Penalties against individuals for unjustified refusal to work; 
          additional justifications.
Sec. 205. Elimination of miscellaneous provisions.

                  TITLE III--PROHIBITIONS; REQUIREMENTS

Sec. 301. Replacement of requirement to sanction individual for 
          noncooperation in establishing paternity or obtaining child 
          support with prohibition on requiring such cooperation.
Sec. 302. Prohibition on requiring assignment of support rights to the 
          State; return of support rights assigned to the State.
Sec. 303. Elimination of sanction against teenage parents not attending 
          high school or other equivalent training program.
Sec. 304. Requirements relating to disregard of child support.
Sec. 305. Elimination of sanction against teenage parents not living in 
          adult-supervised settings.
Sec. 306. Protection for children.
Sec. 307. 5-year time limit.
Sec. 308. Requirement to provide notice of rights of recipients, and 
          train program personnel in carrying out program consistent 
          with the rights.
Sec. 309. Requirement to provide information to individuals who are, or 
          are at risk of being, sanctioned.
Sec. 310. Ban on counting income, scholarship, or gift received by 
          dependent minors.
Sec. 311. Ban on diversion of potential applicants for assistance.
Sec. 312. Prohibition on requiring recipients to respond to surveys 
          conducted to obtain information for quarterly reports.
Sec. 313. Confidentiality of program information.
Sec. 314. Nondiscrimination.
Sec. 315. Requirement to provide opportunity to appeal adverse decision.
Sec. 316. Clarification of penalty for failure to comply with individual 
          responsibility plan.
Sec. 317. Applicability of civil rights laws.
Sec. 318. Elimination of special rules relating to treatment of aliens.

                           TITLE IV--PENALTIES

Sec. 401. Increase in penalty for failure to submit required report.
Sec. 402. Replacement of penalty against State for failure to comply 
          with paternity establishment and child support enforcement 
          requirements with penalty for requiring cooperation in 
          establishing paternity or obtaining child support (including 
          assigning support rights to the State).
Sec. 403. Extension of maintenance of effort requirement.
Sec. 404. Penalty for failure of State to comply with child support 
          disregard requirements.
Sec. 405. Penalty for penalizing birth of child.
Sec. 406. Penalty for failure to notify recipients of rights, or train 
          program personnel in respecting rights of recipients.
Sec. 407. Penalty for failure to provide information to individuals who 
          are, or are at risk of being, sanctioned.
Sec. 408. Penalty for counting income, scholarship, or gift received by 
          dependent minor.
Sec. 409. Penalty for diverting potential applicant for assistance.
Sec. 410. Penalty for requiring recipient to respond to survey conducted 
          to obtain information for quarterly report.
Sec. 411. Penalty for unauthorized disclosure of information provided by 
          recipient.
Sec. 412. Penalty for discrimination.
Sec. 413. Penalty for failure to provide opportunity to appeal adverse 
          decision.
Sec. 414. Penalty for failure to comply with minimum benefit rules.
Sec. 415. Penalty for failure to provide individual child care 
          entitlement.
Sec. 416. Failure to submit report on welfare access and outcomes.
Sec. 417. Elimination of reasonable cause exception.
Sec. 418. Modification of availability of corrective compliance plan 
          option.
Sec. 419. Repeal of ban on assistance for persons convicted of a drug 
          felony.

                      TITLE V--STUDIES AND REPORTS

Sec. 501. Additional information to be included in quarterly State 
          reports.
Sec. 502. Elimination from secretarial report to the Congress of 
          information on out-of-wedlock pregnancies.
Sec. 503. Access to welfare; welfare outcomes.
Sec. 504. Assessment of regional economies to identify higher entry 
          level wage opportunities in industries experiencing labor 
          shortages.
Sec. 505. Research, evaluations, and national studies.
Sec. 506. Study by the Census Bureau.

                            TITLE VI--WAIVERS

Sec. 601. Waivers.

          TITLE VII--REPEAL OF LIMITATION ON FEDERAL AUTHORITY

Sec. 701. Repeal of limitation on Federal authority.

                    TITLE VIII--MINIMUM BENEFIT RULES

Sec. 801. Minimum benefit rules.

                          TITLE IX--CHILD CARE

Sec. 901. Individual entitlement to child care.

                   TITLE X--DEFINITION OF POVERTY LINE

Sec. 1001. Definition of poverty line.

                       TITLE XI--SERVICE PROVIDERS

Sec. 1101. Protection for beneficiaries.

                        TITLE XII--EFFECTIVE DATE

Sec. 1201. Effective date.

SEC. 3. FINDINGS.

  The Congress finds the following:
          (1) Welfare reform has reduced the welfare caseload 
        but has failed to move families out of poverty. More 
        than 40 percent of former welfare recipients continued 
        to live below the poverty line in 1999. Employed former 
        recipients earn a median hourly wage of $7.15. Because 
        challenges to economic opportunity and well-being are 
        not adequately addressed by current welfare programs, 
        existing law must be changed to ensure that welfare 
        policy effectively promotes the reduction of poverty.
          (2) Between 1995 and 1999, a strong economy reduced 
        poverty by about 2 percent. Reductions in Government 
        transfer payments during this period, however, 
        eliminated almost all of the antipoverty effectiveness 
        of economic growth. Prior to welfare reform, between 
        1993 and 1995, Government transfer payments had 
        produced the opposite effect, reducing poverty among 
        American families.
          (3) About \1/3\ of people who have left welfare say 
        they have had to cut the size of meals or skip meals 
        because they did not have enough food in the house.
          (4) Over 40 percent of welfare leavers report that 
        they have had trouble paying housing and utility bills 
        since leaving welfare.
          (5) Since welfare reform was enacted in 1996, and 
        despite a strong economy, there have been sharp 
        increases in the rates at which single mothers with 
        children have had to rely on food pantries and homeless 
        shelters.
          (6) An estimated \1/3\ to \1/2\ of all families 
        leaving welfare for work do not receive medical 
        assistance, food stamps, or child care to which they 
        are entitled.
          (7) Only 1,500,000 of the 9,900,000 children who are 
        eligible for child care subsidies under their States' 
        eligibility guidelines receive child care assistance.
          (8) Between 1997 and 1999, over 500,000 families were 
        sanctioned off welfare and these families have been 
        more likely to experience poverty than have other 
        families leaving welfare. On a variety of measures, 
        families who have been sanctioned off welfare tend to 
        fare worse than other leavers.
          (9) States in which African Americans make up a 
        higher proportion of recipients are statistically more 
        likely to adopt full-family sanctions. African American 
        recipients are statistically more likely than white 
        recipients to participate in a TANF program that 
        employs full-family sanctions. African-American 
        families have, in fact, been sanctioned more frequently 
        than their white counterparts.
          (10) States in which African Americans make up a 
        higher proportion of recipients are statistically more 
        likely to adopt family cap policies. African American 
        recipients are statistically more likely than white 
        recipients to participate in a TANF program that 
        employs a family cap policy.
          (11) States in which African Americans make up a 
        higher proportion of recipients are statistically more 
        likely to adopt time limits shorter than the Federal 
        Government requires. Approximately \2/3\ of all 
        families that will exhaust their allowable time on 
        welfare are families of color.
          (12) Overall, 78 percent of children with immigrant 
        parents are themselves born in the United States and 
        are therefore eligible for services if poor. Nearly \1/
        4\ of all children of immigrants live in poor families 
        and 23 percent of all poor children in the United 
        States are either first- or second-generation 
        immigrants. Immigrants whose children are eligible for 
        public benefits often don't know about the services, 
        are afraid to access them, or are incorrectly turned 
        away.
          (13) About 25 percent of former welfare recipients 
        have no paid employment and have either no partner or a 
        partner who is unemployed.
          (14) Under welfare reform, single mothers have been 
        forced to work at unsafe and hazardous job sites and to 
        be subject to sexual harassment and racial 
        discrimination.
          (15) Most single mothers who leave welfare for work 
        do not earn enough in wages to lift their families out 
        of poverty, even several years after leaving welfare. 
        55 percent remain poor 1 year after leaving welfare; 49 
        percent 3 years after and 42 percent 5 years after. 
        Only about \1/3\ of all leavers have incomes above 150 
        percent of the poverty line years after going off 
        welfare.
          (16) Adolescent children of single mothers who have 
        left welfare for work have school performance rates 
        below those of other low-income children. Early studies 
        of families in welfare-to-work programs in Florida, 
        Minnesota, and Canada have found unexpected evidence 
        that their adolescent children have lower academic 
        achievement and more behavioral problems than the 
        children of other welfare households. The researchers 
        hypothesized that parents in the programs might have 
        less time and energy to monitor their adolescents' 
        behavior once they were employed; that under the stress 
        of working, they might adopt harsher parenting styles; 
        or that the adolescents' assuming more responsibilities 
        at home when parents got jobs was creating too great a 
        burden.
          (17) Under welfare reform, when families lost income 
        regardless of the reason, children were more likely to 
        experience bad outcomes such as increased school 
        suspensions, behavior and mental health problems 
        including symptoms of depression, an increase in the 
        number of children removed from their mother's care, 
        increased enrollment in special classes for behavioral 
        or emotional problems, and health problems such as 
        increased trips to the emergency room. In programs 
        where both employment and income were increased, the 
        impact on children was more positive.
          (18) Most single mothers on welfare who are eligible 
        for the exemption from cooperating in establishing 
        paternity are not made aware of this option.
          (19) 35 percent of low-income families reported 
        mental health problems according to a 1999 study. 
        Similar rates of mental health problems have been found 
        among welfare recipients. Among California welfare 
        program participants, more than \1/3\ had at least 1 
        diagnosable mental health problem in the previous 12 
        months, and about 20 percent had 2 or more. Nationally, 
        between 70 and 90 percent of working-age adults with 
        serious mental health problems are unemployed. 
        According to a 2001 study, major depression 
        significantly decreases the likelihood that a woman 
        receiving welfare will be employed and the presence of 
        1 or more of 4 psychiatric disorders increases the 
        likelihood of receiving cash assistance by 32 percent.
          (20) Over half of women receiving welfare have been 
        victims of domestic violence as adults. According to 
        several studies, a quarter to a third of welfare 
        recipients report having been abused within the last 
        year. Abusive partners often interfere with women's 
        attempts to work or to obtain education.

SEC. 4. AMENDMENT OF SOCIAL SECURITY ACT.

  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.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. PURPOSES.

  Section 401(a)(1) (42 U.S.C. 601(a)(1)) is amended to read as 
follows:
          ``(1) In general.--The purpose of this part is to end 
        child and family poverty by--
                  ``(A) supporting caregivers so that children 
                may be cared for in their own homes;
                  ``(B) promoting education, training, work 
                supports, and access to jobs that pay a living 
                wage;
                  ``(C) assuring access to Medicaid, Food 
                Stamps, child care, and such other assistance 
                for which the family is eligible;
                  ``(D) providing access to services to address 
                barriers to leaving poverty, including mental 
                health, disability, substance abuse, domestic 
                violence, and sexual assault; and
                  ``(E) reducing poverty of families with 
                children.''.

SEC. 102. STATE PLAN.

  (a) In General.--Section 402(a) (42 U.S.C. 602(a)) is 
amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A)--
                          (i) by striking clause (ii) and 
                        redesignating clauses (iii) and (iv) as 
                        clauses (ii) and (iii), respectively; 
                        and
                          (ii) by striking clauses (v) and 
                        (vi); and
                  (B) in subparagraph (B)--
                          (i) in clause (iii), by inserting 
                        ``and will notify recipients of 
                        assistance under the program of the 
                        rights of individuals under all laws 
                        applicable to program activities'' 
                        before the period;
                          (ii) by striking clauses (i) and (iv) 
                        and redesignating clauses (ii) and 
                        (iii) as clauses (i) and (ii), 
                        respectively;
          (2) in paragraph (7), by striking subparagraph (B) 
        and inserting the following:
                  ``(B) Domestic or sexual violence defined.--
                In this title, the term `domestic or sexual 
                violence' has the same meaning as `battered or 
                subject to extreme cruelty' in section 
                402(a)(7)(C)(ii).''; and
          (3) by adding at the end the following:
          ``(7) Certifications regarding domestic and sexual 
        violence, mental illness, disability, and substance 
        abuse.--
                  ``(A) Standards and procedures.--A 
                certification by the chief executive officer of 
                the State that the State has established and is 
                enforcing standards and procedures to ensure 
                that the State will do the following:
                          ``(i) Address recipient's barriers to 
                        leaving poverty.--Address the needs of 
                        a recipient who has a mental health 
                        problem, disability, or substance abuse 
                        addiction, or who is dealing with 
                        domestic or sexual violence, including 
                        how the State will, at the time of 
                        application, at a recipient's request, 
                        and before imposing any sanction or 
                        penalty for noncompliance--
                                  ``(I) have trained 
                                caseworkers screen, and, at the 
                                option of the recipient, 
                                qualified professionals assess 
                                and identify individuals who 
                                are dealing with a mental 
                                health problem, disability, 
                                substance abuse addiction, or 
                                domestic or sexual violence;
                                  ``(II) in the case of an 
                                individual who is so 
                                identified, at the option of 
                                the individual, refer the 
                                individual and affected 
                                children or other close family 
                                members for appropriate 
                                treatment, counseling, 
                                vocational rehabilitation, job 
                                training, and other services;
                                  ``(III) coordinate, contract, 
                                or hire appropriate licensed 
                                qualified professionals, 
                                including licensed qualified 
                                mental health service 
                                providers, licensed qualified 
                                physicians or medical service 
                                providers, licensed qualified 
                                substance abuse professionals, 
                                domestic violence coalitions, 
                                sexual assault coalitions, or 
                                victim services organizations;
                                  ``(IV) ensure the strict 
                                confidentiality of such 
                                information; and
                                  ``(V) pursuant to a 
                                determination of good cause, 
                                waive, without time limit, any 
                                State or Federal program 
                                requirement for so long as 
                                necessary in every case in 
                                which the requirement--
                                          ``(aa) makes it more 
                                        difficult for the 
                                        individual to manage 
                                        his or her mental 
                                        health problem, 
                                        disability, substance 
                                        abuse addiction, or 
                                        domestic or sexual 
                                        violence situation;
                                          ``(bb) unfairly 
                                        penalizes the 
                                        individual; or
                                          ``(cc) makes the 
                                        individual unsafe.
                          ``(ii) Use of qualified 
                        professionals.--Enter into contracts 
                        with or employ qualified professionals 
                        for the provision of services in each 
                        of the fields of mental health, 
                        substance abuse, disability, and 
                        domestic or sexual violence, and that 
                        the contracts will require that, in the 
                        case of an individual who has multiple 
                        such barriers, the qualified 
                        professionals assigned to the case will 
                        collaborate to provide the individual 
                        with integrated, comprehensive 
                        services.
                  ``(B) Definitions.--In this paragraph:
                          ``(i) Domestic violence coalition.--
                        The term `domestic violence coalition' 
                        means a nonprofit, nongovernmental 
                        membership organization that--
                                  ``(I) consists of the 
                                entities carrying out a 
                                majority of the domestic 
                                violence programs carried out 
                                in a State;
                                  ``(II) collaborates and 
                                coordinates activities with 
                                Federal, State, and local 
                                entities to further the 
                                purposes of domestic violence 
                                intervention and prevention; 
                                and
                                  ``(III) among other 
                                activities, provides training 
                                and technical assistance to 
                                entities carrying out domestic 
                                violence programs in a State, 
                                territory, political 
                                subdivision, or area under 
                                Federal authority.
                          ``(ii) Sexual assault coalition.--The 
                        term `sexual assault coalition' means a 
                        nonprofit, nongovernmental membership 
                        organization that--
                                  ``(I) consists of the 
                                entities carrying out a 
                                majority of the sexual assault 
                                programs carried out in a 
                                State;
                                  ``(II) collaborates and 
                                coordinates activities with 
                                Federal, State, and local 
                                entities to further the 
                                purposes of sexual assault 
                                intervention and prevention; 
                                and
                                  ``(III) among other 
                                activities, provides training 
                                and technical assistance to 
                                entities carrying out sexual 
                                assault programs in a State, 
                                territory, political 
                                subdivision, or area under 
                                Federal authority.
                          ``(iii) Victim services 
                        organization.--The term `victim 
                        services organization' means a 
                        nonprofit, nongovernmental organization 
                        that provides assistance to victims of 
                        domestic or sexual violence or to 
                        advocates for such victims, including a 
                        rape crisis center, an organization 
                        carrying out a domestic violence 
                        program, an organization operating a 
                        shelter or providing counseling 
                        services, or an organization providing 
                        assistance through the legal process.
                          ``(iv) Licensed qualified mental 
                        health service provider.--The term 
                        `licensed qualified mental health 
                        service provider' means a psychiatrist, 
                        clinical psychologist, clinical social 
                        worker, community mental health 
                        counselor, or other licensed individual 
                        who has appropriate training in the 
                        diagnosis and treatment of mental 
                        illness in children, adolescents, and 
                        adults or provides mental health 
                        services reimbursed under title XVIII 
                        or a State plan approved under title 
                        XIX.
                          ``(v) Qualified professional.--The 
                        term `qualified professional' means--
                                  ``(I) with respect to a 
                                disability, a physician or 
                                other licensed medical 
                                provider;
                                  ``(II) with respect to 
                                substance abuse, a licensed 
                                drug counselor or clinician 
                                with expertise in the 
                                assessment and treatment of 
                                parents with drug addiction 
                                issues, who may be affiliated 
                                with an out-patient or 
                                residential family drug or 
                                alcohol treatment program; or
                                  ``(III) with respect to 
                                domestic or sexual violence--
                                          ``(aa) a State or 
                                        tribal domestic 
                                        violence coalition or 
                                        sexual assault 
                                        coalition; or
                                          ``(bb) a State or 
                                        local victim services 
                                        organization with 
                                        recognized expertise in 
                                        the dynamics of 
                                        domestic or sexual 
                                        violence whose primary 
                                        mission is to provide 
                                        services to victims of 
                                        domestic or sexual 
                                        violence, such as a 
                                        rape crisis center or 
                                        domestic violence 
                                        program.
          ``(8) Certification regarding assessment of regional 
        economies and informing localities of sectoral labor 
        shortages.--A certification by the chief executive 
        officer of the State that, during the fiscal year, the 
        State will assess its regional economies and provide 
        information to political subdivisions of the State 
        about the industrial sectors that are experiencing a 
        labor shortage and that provide higher entry-level wage 
        opportunities for unemployed and underemployed job 
        seekers.''.

SEC. 103. FUNDING.

  (a) Family Assistance Grant.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)) is amended in each of subparagraphs (A) and (E) by 
striking ``1996, 1997, 1998, 1999, 2000, 2001, and 2002'' and 
inserting ``1996 through 2008''.
  (b) Inflation Adjustment.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)) is amended--
          (1) in subparagraph (B)--
                  (A) by striking ``means the greatest of--'' 
                and inserting ``means, with respect to a fiscal 
                year specified in subparagraph (A) of this 
                paragraph--
                          ``(i) the greatest of--'';
                  (B) by redesignating each of clauses (i), 
                (ii)(I), (ii)(II), and (iii) as subclauses (I), 
                (II)(aa), (II)(bb), and (III), respectively;
                  (C) by indenting each of the provisions 
                specified in subparagraph (B) of this paragraph 
                2 additional ems to the right;
                  (D) by striking the period and inserting ``; 
                multiplied by''; and
                  (E) by adding at the end the following:
                          ``(ii) 1.00, plus the inflation 
                        percentage (as defined in subparagraph 
                        (F) of this paragraph) in effect for 
                        the fiscal year specified in 
                        subparagraph (A) of this paragraph.''; 
                        and
          (2) by adding at the end the following:
                  ``(F) Inflation percentage.--For purposes of 
                subparagraph (B) of this paragraph:
                          ``(i) In general.--Except as provided 
                        in clause (ii), the inflation 
                        percentage applicable to a fiscal year 
                        is the percentage (if any) by which--
                                  ``(I) the average of the 
                                Consumer Price Index (as 
                                defined in section 1(f)(5) of 
                                the Internal Revenue Code of 
                                1986) for the 12-month period 
                                ending on September 30 of the 
                                immediately preceding fiscal 
                                year; exceeds
                                  ``(II) the average of the 
                                Consumer Price Index (as so 
                                defined) for the 12-month 
                                period ending on September 30, 
                                2001.
                          ``(ii) Special rule for fiscal year 
                        2003.--The inflation percentage 
                        applicable to fiscal year 2003 is \1/2\ 
                        of the inflation percentage determined 
                        under clause (i) for fiscal year 
                        2003.''.
  (c) Replacement of Bonus To Reward Decrease in Illegitimacy 
Ratio With Child Poverty Reduction Bonus.--Section 403(a)(2) 
(42 U.S.C. 603(a)) is amended to read as follows:
          ``(2) Bonus to reward states that reduce child 
        poverty.--
                  ``(A) In general.--Beginning with fiscal year 
                2003, the Secretary shall make a grant pursuant 
                to this paragraph to each State for each fiscal 
                year for which the State is a qualified child 
                poverty reduction State.
                  ``(B) Amount of grant.--
                          ``(i) In general.--Subject to this 
                        subparagraph, the amount of the grant 
                        to be made to a qualified child poverty 
                        reduction State for a fiscal year shall 
                        be an amount equal to--
                                  ``(I) the number of children 
                                who had not attained 18 years 
                                of age by the end of the then 
                                most recently completed 
                                calendar year and who resided 
                                in the State as of the end of 
                                such calendar year, divided by 
                                the number of such children who 
                                resided in the United States as 
                                of the end of such calendar 
                                year; multiplied by
                                  ``(II) the amount 
                                appropriated pursuant to 
                                subparagraph (F) for the fiscal 
                                year.
                          ``(ii) Limitations.--
                                  ``(I) Minimum grant.--The 
                                amount of the grant to be made 
                                to a qualified child poverty 
                                reduction State for a fiscal 
                                year shall be not less than 
                                $1,000,000.
                                  ``(II) Maximum grant.--The 
                                amount of the grant to be made 
                                to a qualified child poverty 
                                reduction State for a fiscal 
                                year shall not exceed an amount 
                                equal to 5 percent of the State 
                                family assistance grant for the 
                                fiscal year.
                          ``(iii) Pro rata increase.--If the 
                        amount available for grants under this 
                        paragraph for a fiscal year is greater 
                        than the total amount of payments 
                        otherwise required to be made under 
                        this paragraph for the fiscal year, 
                        then the amount otherwise payable to 
                        any State for the fiscal year under 
                        this paragraph shall, subject to clause 
                        (ii)(II), be increased by such equal 
                        percentage as may be necessary to 
                        ensure that the total of the amounts 
                        payable for the fiscal year under this 
                        paragraph equals the amount available 
                        for the grants.
                          ``(iv) Pro rata reduction.--If the 
                        amount available for grants under this 
                        paragraph for a fiscal year is less 
                        than the total amount of payments 
                        otherwise required to be made under 
                        this paragraph for the fiscal year, 
                        then the amount otherwise payable to 
                        any State for the fiscal year under 
                        this paragraph shall, subject to clause 
                        (ii)(I), be reduced by such equal 
                        percentage as may be necessary to 
                        ensure that the total of the amounts 
                        payable for the fiscal year under this 
                        paragraph equals the amount available 
                        for the grants.
                          ``(v) Special rule for fiscal year 
                        2003.--The amount payable to a State 
                        under this paragraph for fiscal year 
                        2003 shall be \1/2\ of the amount 
                        otherwise so payable.
                  ``(C) Use of grant.--A State to which a grant 
                is made under this paragraph shall use the 
                grant for any purpose for which a grant made 
                under this part may be used.
                  ``(D) Definitions.--In this paragraph:
                          ``(i) Qualified child poverty 
                        reduction state.--The term `qualified 
                        child poverty reduction State' means, 
                        with respect to a fiscal year, a State 
                        if--
                                  ``(I) the child poverty rate 
                                achieved by the State for the 
                                then most recently completed 
                                calendar year for which such 
                                information is available is 
                                less than the lowest child 
                                poverty rate achieved by the 
                                State during the applicable 
                                period; and
                                  ``(II) the average depth of 
                                child poverty in the State for 
                                the then most recently 
                                completed calendar year for 
                                which such information is 
                                available is not greater than 
                                the average depth of child 
                                poverty in the State for the 
                                calendar year that precedes 
                                such then most recently 
                                completed calendar year.
                          ``(ii) Applicable period.--In clause 
                        (i), the term `applicable period' 
                        means, with respect to a State and the 
                        calendar year referred to in clause 
                        (i)(I), the period that--
                                  ``(I) begins with the 
                                calendar year that, as of 
                                October 1, 2002, precedes the 
                                then most recently completed 
                                calendar year for which such 
                                information is available; and
                                  ``(II) ends with the calendar 
                                year that precedes the calendar 
                                year referred to clause (i)(I).
                          ``(iii) Child poverty rate.--The term 
                        `child poverty rate' means, with 
                        respect to a State and a calendar year, 
                        the percentage of children residing in 
                        the State during the calendar year 
                        whose family income for the calendar 
                        year is less than the poverty line then 
                        applicable to the family.
                          ``(iv) Average depth of child 
                        poverty.--The term `average depth of 
                        child poverty' means with respect to a 
                        State and a calendar year, the average 
                        dollar amount by which family income is 
                        exceeded by the poverty line, among 
                        children in the State whose family 
                        income for the calendar year is less 
                        than the applicable poverty line.
                          ``(v) Poverty line.--The term 
                        `poverty line' has the meaning given 
                        the term 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.
                  ``(E) Family income determinations.--For 
                purposes of this paragraph, family income 
                includes cash income, child support payments, 
                government cash payments, and benefits under 
                the Food Stamp Act of 1977 that are received by 
                any family member, and family income shall be 
                determined after payment of all taxes and 
                receipt of any tax refund or rebate by any 
                family member.
                  ``(F) Appropriations.--
                          ``(i) In general.--Out of any money 
                        in the Treasury of the United States 
                        not otherwise appropriated, there are 
                        appropriated--
                                  ``(I) for fiscal year 2003, 
                                $75,000,000 for grants under 
                                this paragraph; and
                                  ``(II) for fiscal year 2004 
                                and each fiscal year thereafter 
                                $150,000,000 for grants under 
                                this paragraph.
                          ``(ii) Availability.--Amounts made 
                        available under clause (i) shall remain 
                        available until expended.''.
  (d) Supplemental Grant for Population Increases in Certain 
States.--Section 403(a)(3) (42 U.S.C. 603(a)) is amended--
          (1) in subparagraph (A)(ii), by striking ``, 2000, 
        and 2001'' and inserting ``through 2008'';
          (2) by striking subparagraphs (C) and (D) and 
        inserting the following:
                  ``(C) Qualifying state.--For purposes of this 
                paragraph, a State is a qualifying State for a 
                fiscal year if rate at which the population of 
                the State with income less than 200 percent of 
                the poverty line has increased (as determined 
                by the Bureau of the Census) for the most 
                recent fiscal year for which information is 
                available exceeds the such rate for all States 
                (as so determined) for such most recent fiscal 
                year.
                  ``(D) State defined.--In this paragraph, the 
                term `State' means each of the 50 States of the 
                United States, the District of Columbia, Puerto 
                Rico, the United States Virgin Islands, and 
                Guam.''; and
          (3) in subparagraph (E)--
                  (A) by striking ``1998, 1999, 2000, and 
                2001'' and inserting ``2003 through 2008''; and
                  (B) by striking ``$800,000,000'' and 
                inserting ``$2,000,000,000''.
  (e) Amendment of Bonus to Reward High Performance States.--
Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended to read as 
follows:
          ``(4) Bonus to reward high performance states.--
                  ``(A) In general.--The Secretary shall make a 
                grant pursuant to this paragraph to each State 
                for each bonus year for which the State is a 
                high performing State with respect to a 
                category described in subparagraph (C).
                  ``(B) Amount of grant.--
                          ``(i) In general.--Subject to clause 
                        (ii) of this subparagraph, the 
                        Secretary shall determine the amount of 
                        the grant payable under this paragraph 
                        to a high performing State for a bonus 
                        year with respect to a category, which 
                        shall be based on the score assigned to 
                        the State under subparagraph (D)(i) 
                        with respect to the category for the 
                        fiscal year that immediately precedes 
                        the bonus year.
                          ``(ii) Limitation.--The total of the 
                        amounts payable to a State under this 
                        paragraph for a bonus year shall not 
                        exceed 5 percent of the State family 
                        assistance grant.
                  ``(C) Formula for measuring state 
                performance.--Not later than October 1, 2003, 
                the Secretary shall, in consultation with 
                affected groups, including recipient groups and 
                State governors, issue regulations implementing 
                criteria for awarding of bonuses under this 
                paragraph in the following categories:
                          ``(i) Preparation and placement of 
                        recipients in employment that will move 
                        families out of poverty.--The degree of 
                        success in implementing employment-
                        related measures, including job entry, 
                        job retention and earnings gain rates, 
                        improvement in each of such measures, 
                        and the success of States in--
                                  ``(I) meeting self-
                                sufficiency needs for welfare 
                                leavers;
                                  ``(II) training, placing and 
                                retaining welfare leavers in 
                                higher-waged jobs identified in 
                                the assessment most recently 
                                submitted by the State pursuant 
                                to section 411(d);
                                  ``(III) training, placing and 
                                retaining welfare leavers in 
                                technical, professional, or 
                                nontraditional occupations for 
                                women;
                                  ``(IV) providing career 
                                development assistance related 
                                to higher-waged jobs including 
                                reliable, up-to-date career 
                                counseling services, 
                                employability assessments on 
                                available employment that pays 
                                a sustainable wage, 
                                nontraditional training and 
                                education options, and 
                                employment opportunities;
                                  ``(V) encouraging 
                                participation in post-secondary 
                                educational programs;
                                  ``(VI) encouraging use of 
                                effective literacy programs 
                                that strengthen basic skills in 
                                the context of employment; and
                                  ``(VII) encouraging 
                                participation in vocational 
                                education programs for 
                                occupations identified in the 
                                assessment most recently 
                                submitted by the State pursuant 
                                to section 411(d).
                          ``(ii) Removal of barriers to self 
                        sufficiency.--The degree of success in 
                        removing mental health, substance 
                        abuse, disability, or domestic or 
                        sexual violence barriers to escaping 
                        poverty, which shall be based on an 
                        equal weighting of the following:
                                  ``(I) Notification.--The 
                                percentage of individuals 
                                receiving assistance under this 
                                part who report having been 
                                notified of the option to be 
                                assessed for and receive 
                                services to manage a barrier to 
                                escaping poverty. A State shall 
                                not be eligible for a grant 
                                under this paragraph with 
                                respect to the category 
                                described in this subparagraph 
                                unless at least 75 percent of 
                                the individuals surveyed by the 
                                State respond in the 
                                affirmative to the question of 
                                whether the individual has 
                                received the notification.
                                  ``(II) Training.--The 
                                percentage of caseworkers, 
                                supervisors, and new employees 
                                who have been trained in a 
                                curriculum developed by or in 
                                collaboration with qualified 
                                professionals in each of mental 
                                health, substance abuse, 
                                disability, or domestic or 
                                sexual violence services. A 
                                State shall not be eligible for 
                                a grant under this paragraph 
                                with respect to the category 
                                described in this subparagraph 
                                unless at least 80 percent of 
                                the caseworkers, supervisors, 
                                and employees administering the 
                                State program funded under this 
                                part have been trained in the 
                                curriculum.
                                  ``(III) Assessment and 
                                services.--The State must 
                                certify that the State has 
                                contracts with or employs 
                                qualified professionals in 
                                mental health, substance abuse, 
                                disability, or domestic or 
                                sexual violence services, and 
                                that the contract requires that 
                                where an individual has 
                                multiple barriers the 
                                professional service providers 
                                will collaborate to provide the 
                                individual holistic services.
                          ``(iii) Provision of work supports.--
                        The extent to which the State has 
                        increased the percentages described to 
                        in the following subclauses in 
                        comparison to the percentages achieved 
                        in fiscal year 2001:
                                  ``(I) Food stamps measures.--
                                Of the number of families with 
                                children in the State who are 
                                eligible to receive food stamp 
                                benefits under the Food Stamp 
                                Act of 1977, the percentage who 
                                receive such benefits.
                                  ``(II) Medicaid and schip 
                                measures.--Of the individuals 
                                who have ceased receiving 
                                assistance under the State 
                                program funded under this part 
                                for 4 or more months, and are 
                                eligible to receive medical 
                                assistance under a State plan 
                                approved under title XIX or the 
                                child health assistance under a 
                                State plan approved under title 
                                XXI, the percentage who receive 
                                such medical or child health 
                                assistance.
                                  ``(III) Child care 
                                measures.--Of the children in 
                                the State who meet the maximum 
                                allowable Federal eligibility 
                                requirements for benefits under 
                                the Child Care and Development 
                                Block Grant Act of 1990, the 
                                percentage who receive such 
                                benefits, including any such 
                                children who receive child care 
                                benefits provided with 
                                additional State or Federal 
                                funds, including Head Start 
                                Funds. In taking the percentage 
                                into account for purposes of 
                                this clause, the Secretary 
                                shall also consider (aa) the 
                                affordability of child care 
                                subsidies by including a 
                                comparison of co-payment rates 
                                charged to eligible families, 
                                and (bb) the proportion of 
                                market rates paid to providers 
                                of subsidized child care as 
                                determined by a market rate 
                                survey that was taken not more 
                                than 2 years earlier.
                  ``(D) Scoring of state performance; setting 
                of performance thresholds.--For each bonus 
                year, the Secretary shall--
                          ``(i) use the formula developed under 
                        subparagraph (C) for a measure to 
                        assign a score to each eligible State 
                        with respect to the measure for the 
                        fiscal year that immediately precedes 
                        the bonus year; and
                          ``(ii) prescribe a performance 
                        threshold for each such measure in such 
                        a manner so as to ensure that--
                                  ``(I) the average annual 
                                total amount of grants to be 
                                made under this paragraph for 
                                each bonus year equals 
                                $278,333,333; and
                                  ``(II) the total amount of 
                                grants to be made under this 
                                paragraph for all bonus years 
                                equals $1,670,000,000.
                  ``(E) Definitions.--In this paragraph:
                          ``(i) Bonus year.--The term `bonus 
                        year' means fiscal years 2003 through 
                        2008.
                          ``(ii) High performing state.--The 
                        term `high performing State' means, 
                        with respect to a measure and a bonus 
                        year, an eligible State whose score 
                        assigned pursuant to subparagraph 
                        (D)(i) with respect to the measure for 
                        the fiscal year immediately preceding 
                        the bonus year equals or exceeds the 
                        performance threshold prescribed under 
                        subparagraph (D)(ii) with respect to 
                        the measure for such preceding fiscal 
                        year.
                  ``(F) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                years 2003 through 2008 $1,670,000,000 for 
                grants under this paragraph.''.
  (f) Elimination of Welfare-to-Work Grants.--
          (1) In general.--
                  (A) Grants to states.--Section 403(a) (42 
                U.S.C. 603(a)) is amended by striking paragraph 
                (5).
                  (B) Grants to indian tribes.--Section 412(a) 
                (42 U.S.C. 612(a)) is amended by striking 
                paragraph (3).
          (2) Conforming amendments.--
                  (A) Section 413 (42 U.S.C. 613) is amended by 
                striking subsection (j).
                  (B) Section 510 (42 U.S.C. 710) is repealed.
                  (C) Section 404(k)(1)(C) (42 U.S.C. 
                604(k)(1)(C)) is amended--
                          (i) by adding ``and'' at the end of 
                        clause (ii);
                          (ii) by striking clause (iii); and
                          (iii) by redesignating clause (iv) as 
                        clause (iii).
  (g) 50 Percent Federal Match for State Funding in Excess of 
Required Maintenance of Effort Level.--Section 403(a) (42 
U.S.C. 603(a)), as amended by subsection (e)(1)(A) of this 
section, is amended by adding at the end the following:
          ``(5) Matching grants for state expenditures 
        exceeding required maintenance of effort level.--
                  ``(A) In general.--Each eligible State shall 
                be entitled to receive from the Secretary for a 
                fiscal year a grant in an amount equal to the 
                amount (if any) by which the total of the 
                qualified State expenditures (as defined in 
                section 409(a)(7)(B)(i)) for the fiscal year 
                exceeds the applicable percentage (as defined 
                in section 409(a)(7)(B)(ii)) of historic State 
                expenditures (as defined in section 
                409(a)(7)(B)(iii)) with respect to the fiscal 
                year.
                  ``(B) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated such sums 
                as are necessary for grants under this section 
                for fiscal years 2003 through 2008.''.
  (h) Contingency Fund.--
          (1) In general.--Section 403(b) (42 U.S.C. 603(b)) is 
        amended by striking paragraphs (2) through (7) and 
        inserting the following:
          ``(2) Deposits into fund.--Out of any money in the 
        Treasury of the United States not otherwise 
        appropriated, there are appropriated for each of fiscal 
        years 1997 through 2008 such sums as are necessary for 
        grants under this section for the fiscal year.
          ``(3) Grants.--The Secretary shall make a grant to a 
        needy State, for each eligible month with respect to 
        the State, in an amount equal to the amount described 
        in paragraph (6).
          ``(4) Needy state.--A State is a needy State for 
        purposes of this paragraph if--
                  ``(A) the rate of total unemployment in the 
                State (seasonally adjusted) for the most recent 
                month for which such information is available--
                          ``(i) is at least 5.5 percent; or
                          ``(ii) has increased by the lesser of 
                        50 percent, or 1.5 percentage points, 
                        over the lesser of the average rate of 
                        total unemployment in the State 
                        (seasonally adjusted) for the preceding 
                        fiscal year or such average rate for 
                        the 2nd preceding fiscal year; or
                  ``(B) the number of families participating in 
                eligible State programs is at least 10 percent 
                greater than the average monthly number of 
                families who participated in the programs 
                during the 2 consecutive calendar quarters of 
                the then most recent 8 such quarters in which 
                such average monthly number was the least.
          ``(5) Eligible month.--In paragraph (3), the term 
        `eligible month' means, with respect to a State, any 
        month for which the State is a needy State, and each 
        subsequent month until--
                  ``(A) 3 months has elapsed since the end of 
                the most recent month in which the 3-month 
                moving average of the rate of total 
                unemployment in the State (seasonally adjusted) 
                was less than the monthly unemployment rate in 
                the State in the most recent month in which the 
                State became (or, in the absence of paragraph 
                (4)(B), would have become) a needy State by 
                reason of paragraph (4)(A); and
                  ``(B) 4 months has elapsed since the end of 
                the most recent month in which the number of 
                families participating in eligible State 
                programs was at least as great as the number of 
                families so participating in the most recent 
                month in which the State became (or, in the 
                absence of paragraph (4)(A), would have become) 
                a needy State by reason of paragraph (4)(B).
          ``(6) Grant amount.--The amount described in this 
        paragraph with respect to a State is an amount equal to 
        110 percent of--
                  ``(A) 80 percent of the average total amount 
                expended by the State under all eligible State 
                programs in the 2 consecutive calendar quarters 
                of the then most recent 8 such quarters in 
                which the average monthly number of families 
                participating in the programs was the least; 
                multiplied by
                  ``(B) the percentage by which the monthly 
                number of families participating in eligible 
                State programs has increased over the average 
                monthly number of families so participating 
                during the 2 consecutive quarters referred to 
                in subparagraph (A).
          ``(7) Eligible state program defined.--In this 
        subsection, the term `eligible State program' means, 
        with respect to a State, any program under which a 
        State expenditure could be considered a qualified State 
        expenditure (as defined in section 409(a)(7)(B)(i)).''.
          (2) Easing of related maintenance of effort 
        requirement.--Section 409(a)(10) (42 U.S.C. 609(a)(10)) 
        is amended by striking ``100 percent'' and inserting 
        ``the applicable percentage (as defined in paragraph 
        (7)(B)(ii) of this subsection)''.
  (i) Federal Loans for State Welfare Programs.--Section 406 
(42 U.S.C. 606) is amended--
          (1) in subsection (d), by striking ``10'' and 
        inserting ``20''; and
          (2) in subsection (e), by striking ``$1,700,000,000'' 
        and inserting ``$2,000,000,000''.
  (j) Grants for Indian Tribes.--Paragraphs (1)(A) and (2)(A) 
of section 412(a) (42 U.S.C. 612(a)(1)(A), (2)(A)) are each 
amended by striking ``1997, 1998, 1999, 2000, 2001, and 2002'' 
and inserting ``1997 through 2008''.
  (k) Studies and Demonstrations.--Section 413(h)(1) (42 U.S.C. 
613(h)(1)) is amended by striking ``2002'' and inserting 
``2008''.
  (l) Study by the Census Bureau.--Section 414(b) (42 U.S.C. 
614(b)) is amended by striking ``1996, 1997, 1998, 1999, 2000, 
2001, and 2002'' and inserting ``1996 through 2008''.
  (m) Child Care Entitlement.--Section 418(a)(3) (42 U.S.C. 
618(a)(3) is amended--
          (1) by striking ``and'' at the end of subparagraph 
        (E);
          (2) by striking the period and inserting ``; and''; 
        and
          (3) by adding at the end the following:
                  ``(G) $5,300,333,333 for fiscal year 2003;
                  ``(H) $5,400,333,333 for fiscal year 2004;
                  ``(I) $5,500,333,333 for fiscal year 2005;
                  ``(J) $5,700,333,333 for fiscal year 2006;
                  ``(K) $5,900,333,333 for fiscal year 2007; 
                and
                  ``(L) $6,050,333,333 for fiscal year 2008.''.

SEC. 104. USE OF FUNDS.

  (a) Elimination of Authority to Treat Interstate Immigrants 
Under Rules of Former State.--Section 404 (42 U.S.C. 604) is 
amended by striking subsection (c).
  (b) Modifications to Individual Development Accounts.--
Section 404(h) (42 U.S.C. 604(h)) is amended--
          (1) in paragraph (2), by striking subparagraph (C) 
        and redesignating subparagraph (D) as subparagraph (C);
          (2) in paragraph (5)(A), by adding at the end the 
        following:
                          ``(iii) An institution that offers a 
                        course of study leading to adult 
                        literacy, in English as a second 
                        language, or a certificate of high 
                        school equivalency.''; and
          (3) in paragraph (5)(F), by striking ``and 
        inventory'' and inserting ``inventory, and 
        transportation''.
  (c) Conforming Amendments.--Section 404 (42 U.S.C. 404) is 
amended by striking subsections (i) and (j) and redesignating 
subsection (k) as subsection (i).

                      TITLE II--WORK REQUIREMENTS

SEC. 201. REDUCED WORK REQUIREMENT FOR PARENTS OF SCHOOL-AGE CHILDREN 
                    WHO CANNOT FIND ADEQUATE CHILD CARE.

  Section 407(c)(1)(A) (42 U.S.C. 607(c)(1)(A)) is amended by 
adding at the end the following:
                ``Notwithstanding the preceding sentence, the 
                maximum average number of hours per week shall 
                be 20 for any week in which the recipient is 
                the parent or caretaker relative of a child who 
                has attained 6 years of age and does not have 
                meaningful access to safe, appropriate, 
                affordable, and quality after-school or summer 
                care for the child.''.

SEC. 202. CONFORMING THE NUMBER OF WEEKS TO THE UNEMPLOYMENT INSURANCE 
                    COMPENSATION STANDARD.

  Section 407(c)(2)(A)(i) (42 U.S.C. 607(c)(2)(A)(i)) is 
amended by striking ``6 weeks'' and inserting ``12 weeks''.

SEC. 203. REVISION OF WORK ACTIVITIES.

  (a) In General.--Section 407(d) (42 U.S.C. 607(d)) is 
amended--
          (1) by striking paragraph (4) and inserting the 
        following:
          ``(4) transitional work experience leading to jobs 
        that provide an income of not less than 250 percent of 
        the poverty line;'';
          (2) by striking paragraph (7) and inserting the 
        following:
          ``(7) voluntary participation in a community service 
        program;'';
          (3) in paragraph (8), by striking ``(not to exceed 12 
        months with respect to any individual)''; and
          (4) by striking paragraphs (10) through (12) and 
        inserting the following:
          ``(10) participation in a State or Federal work-study 
        program under part C of title IV of the Higher 
        Education Act of 1965;'';
          ``(11) education, including not more than 6 hours of 
        home study per week, in the case of a recipient who is 
        enrolled--
                  ``(A) at an elementary or secondary school 
                (as defined in the Elementary and Secondary 
                Education Act of 1965);
                  ``(B) in a course of study leading to adult 
                literacy, English as a second language, or a 
                certificate of high school equivalency; or
                  ``(C) at an institution of higher education 
                (as defined in section 102 of the Higher 
                Education Act of 1965), regardless of the 
                content of the course of study;
          ``(12) the provision of appropriate care to a child 
        who has a disability or a serious health condition (as 
        defined in section 101(11) of the Family Medical Leave 
        Act) or has not attained 6 years of age, by a recipient 
        who is a parent or caretaker relative of the child; and
          ``(13) participation in treatment or an educational 
        activity designed to address a mental health problem, 
        disability, substance abuse, or domestic or sexual 
        violence.''.
  (b) Conforming Amendments.--Section 407 of such Act (42 
U.S.C. 607) is amended--
          (1) in subsection (b), by striking paragraph (5); and
          (2) in subsection (c)--
                  (A) in each of subparagraphs (A) and (B)(i) 
                of paragraph (1), by striking ``not fewer 
                than'' and all that follows through 
                ``subsection (d),'';
                  (B) in paragraph (1)(B)(ii), by striking 
                ``not fewer than'' and all that follows through 
                ``subsection (d)''; and
                  (C) in paragraph (2), by striking 
                subparagraph (D).

SEC. 204. PENALTIES AGAINST INDIVIDUALS FOR UNJUSTIFIED REFUSAL TO 
                    WORK; ADDITIONAL JUSTIFICATIONS.

  (a) In General.--Section 407(e) (42 U.S.C. 607(e)) is 
amended--
          (1) by striking paragraph (1) and inserting the 
        following:
          ``(1) In general.--Except as otherwise provided in 
        this subsection, if an individual in a family receiving 
        assistance under the State program funded under this 
        part refuses to engage in work required in accordance 
        with this section, the State shall, subject to such 
        good cause and other exceptions as the State may 
        establish, reduce the amount of assistance otherwise 
        payable to the family on a pro rata basis, but to not 
        less than the amount that would be payable to a family 
        with the same number of children but with no adults, 
        with respect to any period during a month in which the 
        individual so refuses.'';
          (2) in paragraph (2)--
                  (A) by striking ``Exception'' and inserting 
                ``Child care exception''; and
                  (B) by striking ``proves that the individual 
                has a demonstrated inability (as determined by 
                the State)'' and inserting ``certifies that the 
                individual is unable''; and
          (3) by adding at the end the following:
          ``(3) Additional child care exceptions.--
        Notwithstanding paragraph (1), a State may not reduce 
        or terminate assistance under the State program funded 
        under this part based on a refusal of an individual to 
        engage in work required in accordance with this section 
        if the individual is a custodial parent or caretaker 
        relative caring for--
                  ``(A) a child who has a disability or a 
                serious health condition (as defined in section 
                101(11) of the Family Medical Leave Act), and 
                the individual does not have meaningful access 
                to safe, appropriate, affordable, and quality 
                care for the child; or
                  ``(B) a child who has attained 6 years of 
                age, and the individual does not have 
                meaningful access to safe, appropriate, 
                affordable, and quality after-school or summer 
                care for the child.
          ``(4) Mental health problem, disability, substance 
        abuse, or domestic or sexual violence exception.--
        Notwithstanding paragraph (1), a State may not reduce 
        or terminate assistance under the State program funded 
        under this part based on the failure of any individual 
        who has a mental health problem, disability, or 
        substance abuse problem, or who is a victim of sexual 
        or domestic violence to engage in work required in 
        accordance with this section if--
                  ``(A) the individual is in the process of 
                being screened or assessed for the mental 
                health problem, disability, substance abuse 
                problem, or sexual or domestic violence 
                situation but the screening or assessment has 
                not been completed;
                  ``(B) the individual has not been offered 
                treatment to address the problem or disability; 
                or
                  ``(C) the individual cannot comply because of 
                the need to seek medical, legal, or other 
                services in relation to the mental health 
                problem, disability, or sexual or domestic 
                violence situation.
          ``(5) Minimum wage exception.--Notwithstanding 
        paragraph (1), a State may not impose a sanction under 
        the State program funded under this part on the basis 
        of the refusal of an individual to accept any 
        employment (including any employment offered under the 
        program), if the wage rate for the employment does not 
        equal or exceed the greater of--
                  ``(A) the minimum wage rate then in effect 
                under section 6 of the Fair Labor Standards Act 
                of 1938; or
                  ``(B) any minimum wage rate prescribed by or 
                under the law of the State.
          ``(6) Discrimination exception.--
                  ``(A) In general.--Notwithstanding paragraph 
                (1), a State may not reduce or terminate 
                assistance under the State program funded under 
                this part based on the failure of any 
                individual to engage in work required in 
                accordance with this section if the individual 
                certifies in a manner described in subparagraph 
                (B) that the individual has left or refused 
                work based on discrimination.
                  ``(B) Certification.--An individual may 
                provide a certification required by 
                subparagraph (A) by sworn written statement or 
                by providing other documentation, including a 
                police or court record or documentation by a 
                shelter worker, an employee of a victim 
                assistance program, an attorney, a member of 
                the clergy, or a medical or other professional 
                from whom the individual has sought assistance 
                as a victim.''.
  (b) Conforming Amendments.--Section 409(a)(11) (42 U.S.C 
609(a)(11)) is amended--
          (1) in the paragraph heading, by striking ``who 
        cannot obtain child care for child under age 6'' and 
        inserting ``with justified refusal to work''; and
          (2) in subparagraph (A), by striking ``407(e)(2)'' 
        and inserting ``407(e)''.

SEC. 205. ELIMINATION OF MISCELLANEOUS PROVISIONS.

  Section 407 (42 U.S.C. 607) is amended by striking 
subsections (g), (h), and (i).

SEC. 206. ASSESSMENT OF INDIVIDUALS FOR JOB PREPARATION.

  Section 407 (42 U.S.C. 607), as amended by section 205 of 
this Act, is amended by adding at the end the following:
  ``(g) Assessment of Individuals for Job Preparation.--At the 
option of a recipient of assistance under a State program 
funded under this part, the State shall, before assigning the 
recipient to a work activity under the program, perform an 
individual assessment for the preparation that is needed for 
the recipient to obtain and maintain a job at a monthly wage 
that is at least 200 percent of the poverty line applicable to 
the family of the recipient.''.

                 TITLE III--PROHIBITIONS; REQUIREMENTS

SEC. 301. REPLACEMENT OF REQUIREMENT TO SANCTION INDIVIDUAL FOR 
                    NONCOOPERATION IN ESTABLISHING PATERNITY OR 
                    OBTAINING CHILD SUPPORT WITH PROHIBITION ON 
                    REQUIRING SUCH COOPERATION.

  (a) In General.--Section 408(a)(2) (42 U.S.C. 608(a)(2)) is 
amended to read as follows:
          ``(2) Prohibition on requiring cooperation in 
        establishing paternity or obtaining child support.--A 
        State to which a grant is made under section 403 shall 
        not penalize an individual under the State program 
        funded under this part by reason of the failure of the 
        individual to cooperate in establishing paternity or 
        establishing, modifying, or enforcing a child support 
        order with respect to a child of the recipient.''.
  (b) Conforming Amendments.--Section 454(29) (42 U.S.C. 
654(29)) is amended--
          (1) by striking ``the State program funded under part 
        A,'' each place it appears; and
          (2) in subparagraph (A)(i), by striking ``E,'' and 
        inserting ``E''.

SEC. 302. PROHIBITION ON REQUIRING ASSIGNMENT OF SUPPORT RIGHTS TO THE 
                    STATE; RETURN OF SUPPORT RIGHTS ASSIGNED TO THE 
                    STATE.

  (a) In General.--Section 408(a)(3) (42 U.S.C. 608(a)(3)) is 
amended to read as follows:
          ``(3) Prohibition on requiring assignment of support 
        rights to the state; requirement to return support 
        rights assigned to the state.--A State to which a grant 
        is made under section 403 shall not penalize an 
        individual or family under the State program funded 
        under this part by reason of the failure of the 
        individual to assign to the State any rights any person 
        may have (on behalf of the person or of any other 
        person for whom the individual has applied for or is 
        receiving assistance) to support from any other person. 
        If any person has assigned any such rights to the 
        State, the State shall assign such rights back to the 
        person.''.
  (b) Conforming Amendments.--
          (1) Section 452 (42 U.S.C. 652) is amended--
                  (A) in subsection (a)(10)(C), by striking 
                ``pursuant to section 408(a)(3) or''; and
                  (B) in subsection (h), by striking ``or with 
                respect to whom an assignment pursuant to 
                section 408(a)(3) is in effect''.
          (2) Section 454(5) (42 U.S.C. 654(5)) is amended by 
        striking ``(A)'' and all that follows through ``(B)''.
          (3) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is 
        amended by striking ``assigned to the State pursuant to 
        section 408(a)(3) or''.
          (4) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is 
        amended by striking ``section 408(a)(3) or''.
          (5) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``section 408(a)(3) or''.

SEC. 303. ELIMINATION OF SANCTION AGAINST TEENAGE PARENTS NOT ATTENDING 
                    HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PROGRAM.

  Section 408(a) (42 U.S.C. 608(a)) is amended by striking 
paragraph (4).

SEC. 304. REQUIREMENTS RELATING TO DISREGARD OF CHILD SUPPORT.

  (a) In General.--Section 408(a) (42 U.S.C. 608(a)), as 
amended by section 303 of this Act, is amended by inserting 
after paragraph (3) the following:
          ``(4) Limited disregard of child support.--In 
        determining the amount and type of assistance for which 
        a family is eligible under the State program funded 
        under this part, a State to which a grant is made under 
        section 403 shall disregard--
                  ``(A) the first $200 (or, if the family 
                includes 2 or more children, $400) per month 
                distributed to any family member by the State 
                under section 457; and
                  ``(B) all child support (as defined in 
                section 459(i)(2)) received by any family 
                member from any other source.''.
  (b) Requirement To Pass Through All Child Support.--
          (1) In general.--Section 457 (42 U.S.C. 657) is 
        amended to read as follows:

``SEC. 457. DISTRIBUTION OF COLLECTED CHILD SUPPORT.

  ``(a) In General.--Except as provided in subsection (b), all 
amounts collected on behalf of a family as support by a State 
pursuant to a plan approved under this part shall be 
distributed to the family.
  ``(b) Exception.--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 pursuant to the 
agreement.''.
          (2) Conforming amendments.--
                  (A) Section 409(a)(7)(B)(i)(I)(aa) (42 U.S.C. 
                609(a)(7)(B)(i)(I)(aa)) is amended by striking 
                ``457(a)(1)(B)'' and inserting ``457''.
                  (B) Section 454B(c)(1) (42 U.S.C. 654b(c)(1)) 
                is amended by striking ``457(a)'' and inserting 
                ``457''.

SEC. 305. ELIMINATION OF SANCTION AGAINST TEENAGE PARENTS NOT LIVING IN 
                    ADULT-SUPERVISED SETTINGS.

  Section 408(a) (42 U.S.C. 608(a)) is amended by striking 
paragraph (5).

SEC. 306. PROTECTION FOR CHILDREN BORN INTO POVERTY.

  Section 408(a) (42 U.S.C. 608(a)), as amended by section 305 
of this Act, is amended by inserting after paragraph (4) the 
following:
          ``(5) Protection for children.--A State to which a 
        grant is made under section 403 shall not deny or limit 
        assistance to a child born into a family receiving 
        assistance under the State program funded under this 
        part.''.

SEC. 307. 5-YEAR TIME LIMIT.

  (a) Removal of Limitations.--
          (1) Elimination of limitation on hardship 
        exception.--Section 408(a)(7)(C) (42 U.S.C. 
        608(a)(7)(C)) is amended by striking clause (ii) and 
        redesignating clause (iii) as clause (ii).
          (2) Compliance exception.--Section 408(a)(7) (42 
        U.S.C. 608(a)(7)) is amended by adding at the end the 
        following:
                  ``(H) Compliance exception.--In determining 
                the number of months for which an individual 
                has received assistance under the State program 
                funded under this part, the State shall 
                disregard any month throughout which the 
                individual is in compliance with all applicable 
                requirements of the State program.''.
  (b) Uniform Duration of Assistance.--Section 408(a)(7)(E) (42 
U.S.C. 608(a)(7)(E)) is amended to read as follows:
                  ``(E) Requirement to provide assistance for 5 
                years.--Notwithstanding section 407(e), a State 
                to which a grant is made under section 403 
                shall not impose a limitation of fewer than 60 
                months on the period for which a recipient is 
                eligible for assistance under the State program 
                funded under this part.''.
  (c) Protection Against Recession.--Section 408(a)(7) (42 
U.S.C. 608(a)(7)), as amended by subsection (a)(2) of this 
section, is amended by adding at the end the following:
                  ``(I) Special rules relating to month in 
                which unemployment is high or has increased 
                sharply over prior 2 years.--
                          ``(i) Clock stopped for current 
                        recipients.--In determining the number 
                        of months for which an individual has 
                        received assistance under the State 
                        program funded under this part, the 
                        State shall disregard any month that is 
                        a trigger month.
                          ``(ii) Treatment of former recipients 
                        who reached time limit.--
                                  ``(I) Notice; determination 
                                of eligibility.--On the 
                                occurrence of a trigger month, 
                                the State shall--
                                          ``(aa) issue a public 
                                        notice that a trigger 
                                        month has occurred; and
                                          ``(bb) on request of 
                                        an individual who had 
                                        become ineligible for 
                                        assistance under the 
                                        State program funded 
                                        under this part by 
                                        reason of this 
                                        paragraph, determine 
                                        the eligibility of the 
                                        individual for such 
                                        assistance as if the 
                                        individual had received 
                                        such assistance for 59 
                                        months.
                                  ``(II) Additional month of 
                                assistance for otherwise 
                                eligible former recipients.--If 
                                the individual is so determined 
                                to be eligible for such 
                                assistance, the State shall, 
                                notwithstanding subparagraph 
                                (A), provide such assistance to 
                                the individual for any month 
                                that is a trigger month, but 
                                shall not provide such 
                                assistance to the individual 
                                for any month that is not a 
                                trigger month.
                          ``(iii) Trigger month.--In this 
                        subparagraph, the term `trigger month' 
                        means, with respect to a State, any 
                        month for which the unemployment rate 
                        of the State--
                                  ``(I) is at least 5.5 
                                percent; or
                                  ``(II) has increased by the 
                                lesser of 50 percent, or 1.5 
                                percentage points, over the 
                                lesser of the average rate of 
                                total unemployment in the State 
                                (seasonally adjusted) for the 
                                preceding fiscal year or the 
                                average unemployment rate of 
                                the State for the 2nd preceding 
                                fiscal year.''.

SEC. 308. REQUIREMENT TO PROVIDE NOTICE OF RIGHTS OF RECIPIENTS, AND 
                    TRAIN PROGRAM PERSONNEL IN CARRYING OUT PROGRAM 
                    CONSISTENT WITH THE RIGHTS.

  Section 408(a) (42 U.S.C. 608(a)) is amended by adding at the 
end the following:
          ``(12) Requirement to provide notice of rights of 
        recipients, and train program personnel to carry out 
        program consistent with the rights.--A State to which a 
        grant is made under section 403 shall--
                  ``(A) notify each recipient of assistance 
                under the program of the rights of recipients 
                under all laws applicable to the activities of 
                the State program funded under this part, and 
                shall provide the notice--
                          ``(i) to a recipient when the 
                        recipient enters the program;
                          ``(ii) to all such recipients on a 
                        semiannual basis; and
                          ``(iii) orally and in writing, in the 
                        native language of the recipient and at 
                        a 6th grade level, and if the native 
                        language is not English, a culturally 
                        competent translation shall be 
                        provided; and
                  ``(B) train all program personnel on a 
                regular basis in how to carry out the program 
                consistent with the rights.''.

SEC. 309. REQUIREMENT TO PROVIDE INFORMATION TO INDIVIDUALS WHO ARE, OR 
                    ARE AT RISK OF BEING, SANCTIONED.

  Section 408(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(13) State required to provide information to 
        individual who has been, or is at risk of being 
        sanctioned.--A State to which a grant is made under 
        section 403 shall provide to any individual who has 
        been, or is at risk of being, sanctioned under the 
        State program funded under this part, orally and in 
        writing, at not more than a 6th grade level in the 
        native language of the individual (and if the native 
        language is not English, a culturally competent 
        translation shall be provided), that--
                  ``(A) program requirements may be waived for 
                people dealing with a mental health, 
                disability, substance abuse, domestic violence, 
                or sexual assault issue;
                  ``(B) an individual dealing with a mental 
                health, disability, substance abuse, domestic 
                violence, or sexual assault issue may request 
                (or if the individual has left or been removed 
                from the program, may return to the program and 
                request) to be assessed under the program for 
                services to address those issues, including 
                appropriate treatment, counseling, vocational 
                rehabilitation, job training, or other 
                services; and
                  ``(C) the State is required to keep any such 
                information strictly confidential.''.

SEC. 310. BAN ON COUNTING INCOME, SCHOLARSHIP, OR GIFT RECEIVED BY 
                    DEPENDENT MINORS.

  Section 408(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(14) Prohibition on counting income, scholarship, 
        or gift received by dependent minor.--In determining 
        the eligibility of a family for, and the amount and 
        type of assistance to be provided to a family under, a 
        State program funded under this part, the State shall 
        disregard any income, scholarship, or gift received by 
        a dependent minor child in the family.''.

SEC. 311. BAN ON DIVERSION OF POTENTIAL APPLICANTS FOR ASSISTANCE.

  Section 408(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(15) Ban on diversion of potential applicants for 
        assistance.--A State may not refuse to accept, at the 
        time of application, an application for assistance from 
        the State program funded under this part, or give an 
        individual reason to believe that, at the time of 
        application, the State will not unconditionally accept 
        such an application from any individual.''.

SEC. 312. PROHIBITION ON REQUIRING RECIPIENTS TO RESPOND TO SURVEYS 
                    CONDUCTED TO OBTAIN INFORMATION FOR QUARTERLY 
                    REPORTS.

  Section 408(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(16) Prohibition on requiring recipients to respond 
        to surveys conducted to obtain information for 
        quarterly reports.--A State to which a grant is made 
        under section 403 shall not penalize an individual 
        under the State program funded under this part by 
        reason of the failure of the individual to respond to a 
        survey conducted to obtain information for use in a 
        report required by section 411(a).''.

SEC. 313. CONFIDENTIALITY OF PROGRAM INFORMATION.

  Section 408(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(17) Confidentiality of program information.--A 
        State to which a grant is made under section 403 shall 
        ensure that any information provided by an individual 
        to a State officer or employee for use by the State 
        program funded under this part shall not be disclosed 
        to any other person, except to the extent that the 
        disclosure is necessary to administer the program or is 
        consented to by the individual.''.

SEC. 314. NONDISCRIMINATION.

  Section 408(a) (42 U.S.C. 608(a) is amended by adding at the 
end the following:
          ``(18) Nondiscrimination.--A State to which a grant 
        is made under section 403 shall ensure equitable 
        treatment of needy families in the State, and shall not 
        discriminate among families based on marital status or 
        applicant or recipient status.''.

SEC. 315. REQUIREMENT TO PROVIDE OPPORTUNITY TO APPEAL ADVERSE 
                    DECISION.

  Section 408(a) (42 U.S.C. 608(a) is amended by adding at the 
end the following:
          ``(19) Requirement to provide opportunity to appeal 
        adverse decision.--A State to which a grant is made 
        under section 403 shall provide a recipient of 
        assistance under the State program funded under this 
        part with the opportunity to appeal any adverse 
        decision made with respect to the recipient under the 
        program.''.

SEC. 316. CLARIFICATION OF PENALTY FOR FAILURE TO COMPLY WITH 
                    INDIVIDUAL RESPONSIBILITY PLAN.

  Section 408(b)(3) (42 U.S.C. 608(b)(3)) is amended by 
striking ``a family that includes''.

SEC. 317. APPLICABILITY OF CIVIL RIGHTS LAWS.

  Section 408(d) (42 U.S.C. 608(d)) is amended--
          (1) in paragraph (3), by inserting ``, or any 
        provision of State law relating to individuals with 
        physical or mental disabilities'' before the 2nd 
        period; and
          (2) by adding at the end the following:
          ``(5) Title VII of the Civil Rights Act of 1964 (42 
        U.S.C. 2000e et seq.), or any provision of State law 
        relating to discrimination on the basis of race, color, 
        national origin, religion, gender, sex, parental or 
        marital status, or sexual orientation.
          ``(6) The Age Discrimination in Employment Act of 
        1967 (29 U.S.C. 621-634), or any provision of State law 
        relating to age discrimination.
          ``(7) Title IX of the Education Amendments of 1972 
        (20 U.S.C. 1681 et seq.), or any provision of State law 
        relating to discrimination in education.
          ``(8) The Fair Labor Standards Act of 1938 (29 U.S.C. 
        201 et seq.), or any provision of State law relating to 
        labor or to a term or condition of employment.
          ``(9) The Occupational Safety and Health Act of 1970 
        (29 U.S.C. 651 et seq).
          ``(10) The National Labor Relations Act (29 U.S.C. 
        151 et seq.).
          ``(11) The Railway Labor Act (45 U.S.C. 151 et seq.).
          ``(12) Any Federal law providing employee protections 
        against discrimination for union activity.
          ``(13) Any other provision of Federal or State law 
        the purpose of which is to provide or protect a civil 
        right.''.

SEC. 318. ELIMINATION OF SPECIAL RULES RELATING TO TREATMENT OF ALIENS.

  (a) Amendments to the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996.--
          (1) Section 401(c)(2) of the Personal Responsibility 
        and Work Opportunity Reconciliation Act of 1996 (8 
        U.S.C. 1611(c)(2)) is amended--
                  (A) by striking ``or'' at the end of 
                subparagraph (B);
                  (B) by striking the period at the end and 
                inserting ``; or''; and
                  (C) by adding at the end the following:
                  ``(D) to any assistance provided under a 
                State program funded under the program of block 
                grants to States for temporary assistance for 
                needy families under part A of title IV of the 
                Social Security Act.''.
          (2)(A) Section 402(b)(3) of such Act (8 U.S.C. 
        1612(b)(3)) is amended by striking subparagraph (A) and 
        redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively.
          (B) Section 402(b)(2)(A)(ii) of such Act (8 U.S.C. 
        1612(b)(2)(A)(ii)) is amended by striking ``(C)'' and 
        inserting ``(B)''.
          (3) Section 403(c)(2) of such Act (8 U.S.C. 
        1613(c)(2)) is amended by adding at the end the 
        following:
                  ``(L) Assistance under a State program funded 
                under the program of block grants to States for 
                temporary assistance for needy families under 
                part A of title IV of the Social Security 
                Act.''.
          (4) Section 423(d) of such Act (8 U.S.C. 1183a note) 
        is amended by adding at the end the following:
          ``(12) Assistance under a State program funded under 
        the program of block grants to States for temporary 
        assistance for needy families under part A of title IV 
        of the Social Security Act.''.
  (b) Conforming Amendments.--
          (1) Section 408 (42 U.S.C. 608) is amended by 
        striking subsections (e) and (f) and by redesignating 
        subsection (g) as subsection (e).
          (2) Section 409(a)(7)(B)(i)(IV) (42 U.S.C. 
        609(a)(7)(B)(i)(IV)) is amended--
                  (A) by striking ``part,'' and inserting 
                ``part and''; and
                  (B) by striking ``, and families of aliens 
                lawfully present in the United States that 
                would be eligible for such assistance but for 
                the application of title IV of the Personal 
                Responsibility and Work Opportunity 
                Reconciliation Act of 1996''.

                          TITLE IV--PENALTIES

SEC. 401. INCREASE IN PENALTY FOR FAILURE TO SUBMIT REQUIRED REPORT.

  Section 409(a)(2)(A) (42 U.S.C. 609(a)(2)(A)) is amended by 
striking ``4'' and inserting ``5''.

SEC. 402. REPLACEMENT OF PENALTY AGAINST STATE FOR FAILURE TO COMPLY 
                    WITH PATERNITY ESTABLISHMENT AND CHILD SUPPORT 
                    ENFORCEMENT REQUIREMENTS WITH PENALTY FOR REQUIRING 
                    COOPERATION IN ESTABLISHING PATERNITY OR OBTAINING 
                    CHILD SUPPORT (INCLUDING ASSIGNING SUPPORT RIGHTS 
                    TO THE STATE) OR FAILING TO RETURN SUPPORT RIGHTS 
                    ASSIGNED TO THE STATE.

  Section 409(a)(5) (42 U.S.C. 609(a)(5)) is amended to read as 
follows:
          ``(5) Penalty for requiring cooperation in 
        establishing paternity or obtaining child support 
        (including assigning support rights to the state) or 
        failing to return support rights assigned to the 
        state.--If the Secretary determines that a State to 
        which a grant is made under section 403 for a fiscal 
        year has violated paragraph (2) or (3) of section 
        408(a) during the fiscal year, the Secretary shall 
        reduce the grant payable to the State under section 
        403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family 
        assistance grant.''.

SEC. 403. EXTENSION OF MAINTENANCE OF EFFORT REQUIREMENT.

  Section 409(a)(7)(A) (42 U.S.C. 609(a)(7)(A)) is amended by 
striking ``or 2003'' and inserting ``2003, 2004, 2005, 2006, 
2007, or 2008''.

SEC. 404. PENALTY FOR FAILURE OF STATE TO COMPLY WITH CHILD SUPPORT 
                    DISREGARD REQUIREMENTS.

  Section 409(a) (42 U.S.C. 609(a)) is amended by adding at the 
end the following:
          ``(15) Penalty for failure to comply with child 
        support disregard requirements.--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)(4) during the fiscal year, the Secretary shall 
        reduce the grant payable to the State under section 
        403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family 
        assistance grant.''.

SEC. 405. PENALTY FOR PENALIZING BIRTH OF CHILD.

  Section 409(a) (42 U.S.C. 609(a)) is further amended by 
adding at the end the following:
          ``(16) Penalty for penalizing birth of child.--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)(5) during the fiscal year, the Secretary 
        shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal 
        year by an amount equal to 5 percent of the State 
        family assistance grant.''.

SEC. 406. PENALTY FOR FAILURE TO NOTIFY RECIPIENTS OF RIGHTS, OR TRAIN 
                    PROGRAM PERSONNEL IN RESPECTING RIGHTS OF 
                    RECIPIENTS.

  Section 409(a) (42 U.S.C. 609(a)) is further amended by 
adding at the end the following:
          ``(17) Penalty for failure to notify recipients of 
        rights, or train program personnel in respecting rights 
        of recipients.--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.''.

SEC. 407. PENALTY FOR FAILURE TO PROVIDE INFORMATION TO INDIVIDUALS WHO 
                    ARE, OR ARE AT RISK OF BEING, SANCTIONED.

  Section 409(a) (42 U.S.C. 609(a)) is further amended by 
adding at the end the following:
          ``(18) Penalty for failure to provide information to 
        individual who has been, or is at risk of being 
        sanctioned.--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)(13) during the fiscal 
        year, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to 5 percent 
        of the State family assistance grant.''.

SEC. 408. PENALTY FOR COUNTING INCOME, SCHOLARSHIP, OR GIFT RECEIVED BY 
                    DEPENDENT MINOR.

  Section 409(a) (42 U.S.C. 608(a)) is amended by adding at the 
end the following:
          ``(19) Penalty for counting income, scholarship, or 
        gift received by dependent minor.--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)(14) during the fiscal year, the Secretary shall 
        reduce the grant payable to the State under section 
        403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family 
        assistance grant.''.

SEC. 409. PENALTY FOR DIVERTING POTENTIAL APPLICANT FOR ASSISTANCE.

  Section 409(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(20) Penalty for diverting potential applicant for 
        assistance.--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)(15) during the fiscal 
        year, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to 5 percent 
        of the State family assistance grant.''.

SEC. 410. PENALTY FOR REQUIRING RECIPIENT TO RESPOND TO SURVEY 
                    CONDUCTED TO OBTAIN INFORMATION FOR QUARTERLY 
                    REPORT.

  Section 409(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(21) Penalty for requiring recipient to respond to 
        survey conducted to obtain information for quarterly 
        report.--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)(16) during the fiscal 
        year, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to 5 percent 
        of the State family assistance grant.''.

SEC. 411. PENALTY FOR UNAUTHORIZED DISCLOSURE OF INFORMATION PROVIDED 
                    BY RECIPIENT.

  Section 409(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(22) Penalty for unauthorized disclosure of 
        information provided by recipient.--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)(17) during the fiscal year, the Secretary shall 
        reduce the grant payable to the State under section 
        403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family 
        assistance grant.''.

SEC. 412. PENALTY FOR DISCRIMINATION.

  Section 409(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(23) Penalty for discrimination.--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)(18) during the fiscal year, the Secretary shall 
        reduce the grant payable to the State under section 
        403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family 
        assistance grant.''.

SEC. 413. PENALTY FOR FAILURE TO PROVIDE OPPORTUNITY TO APPEAL ADVERSE 
                    DECISION.

  Section 409(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(24) Penalty for failure to provide opportunity to 
        appeal adverse decision.--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)(19) 
        during the fiscal year, the Secretary shall reduce the 
        grant payable to the State under section 403(a)(1) for 
        the immediately succeeding fiscal year by an amount 
        equal to 5 percent of the State family assistance 
        grant.''.

SEC. 414. PENALTY FOR FAILURE TO COMPLY WITH MINIMUM BENEFIT RULES.

  Section 409(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(25) Penalty for failure to comply with minimum 
        benefit rules.--If the Secretary determines that a 
        State to which a grant is made under section 403 for a 
        fiscal year has violated section 417 during the fiscal 
        year, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to 5 percent 
        of the State family assistance grant.''.

SEC. 415. PENALTY FOR FAILURE TO PROVIDE INDIVIDUAL CHILD CARE 
                    ENTITLEMENT.

  Section 409(a) (42 U.S.C. 608(a)) is further amended by 
adding at the end the following:
          ``(26) Penalty for failure to provide individual 
        child care entitlement.--Effective January 1, 2005, if 
        the Secretary determines that a State to which a grant 
        is made under section 403 for a fiscal year has 
        violated section 418(b) during the fiscal year, the 
        Secretary shall reduce the grant payable to the State 
        under section 403(a)(1) for the immediately succeeding 
        fiscal year by an amount equal to 5 percent of the 
        State family assistance grant.''.

SEC. 416. FAILURE TO SUBMIT REPORT ON WELFARE ACCESS AND OUTCOMES.

  Section 409(a) (42 U.S.C. 609(a)) is further amended by 
adding at the end the following:
          ``(27) Failure to submit report on welfare access and 
        outcomes.--If the Secretary determines that a State has 
        not, within 45 days after the end of a fiscal year, 
        submitted the report required by section 411(c) for the 
        fiscal year, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year by an amount equal 
        to 5 percent of the State family assistance grant.''.

SEC. 417. ELIMINATION OF REASONABLE CAUSE EXCEPTION.

  Section 409 (42 U.S.C. 609) is amended by striking subsection 
(b).

SEC. 418. MODIFICATION OF AVAILABILITY OF CORRECTIVE COMPLIANCE PLAN 
                    OPTION.

  Section 409(c)(4) (42 U.S.C. 609(c)(4)) is amended to read as 
follows:
          ``(4) Limitation on opportunity to submit corrective 
        compliance plan.--The preceding provisions of this 
        subsection shall not apply with respect to a violation 
        of a provision of this part by a State if the State has 
        violated the provision on 2 or more prior occasions.''.

SEC. 419. REPEAL OF BAN ON ASSISTANCE FOR PERSONS CONVICTED OF A DRUG 
                    FELONY.

  Section 115 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (42 U.S.C. 862a) is 
repealed.

                      TITLE V--STUDIES AND REPORTS

SEC. 501. ADDITIONAL INFORMATION TO BE INCLUDED IN QUARTERLY STATE 
                    REPORTS.

  Section 411(a) (42 U.S.C. 611(a)) is amended--
          (1) in paragraph (1)(A)--
                  (A) in each of clauses (vii) and (viii) by 
                striking ``race' and inserting ``race, 
                gender,'';
                  (B) in clause (xi)(I), by inserting ``, 
                broken down by education level'';
                  (C) by striking clause (xvi) and 
                redesignating clause (xvii) and clause (xvi); 
                and
                  (D) by adding at the end the following:
                          ``(xvii) The amount (if any) of child 
                        support collected on behalf of any 
                        individual in the family, the amount 
                        (if any) of any such collected support 
                        that has been distributed to any such 
                        individual, and the amount (if any) of 
                        such distributed support that has been 
                        disregarded pursuant to section 
                        408(a)(4).
                          ``(xviii) The number of families 
                        receiving child care assistance under 
                        section 418.
                          ``(xix) With respect to sanctions 
                        imposed under the program, the 
                        following information broken down by 
                        race and gender:
                                  ``(I) The number of families 
                                against whom a sanction is in 
                                effect.
                                  ``(II) The number of times 
                                sanctions have been imposed.
                                  ``(III) The reasons for 
                                imposition of sanctions.
                                  ``(IV) The percentage of 
                                sanction determinations that 
                                have been reviewed.
                                  ``(V) The percentage of 
                                reviewed sanction 
                                determinations that have been 
                                reversed.
                                  ``(VI) The number of families 
                                leaving the program as a result 
                                of sanctions.
                          ``(xx) The number of families who 
                        have returned to the program after 
                        having left the program, and the length 
                        of the intervening period.
                          ``(xxi) The percentage of families 
                        who report having been notified of the 
                        option to be assessed for and receive 
                        services to manage a barrier to 
                        escaping poverty.''; and
          (2) by redesignating paragraph (7) as paragraph (8) 
        and inserting after paragraph (6) the following:
          ``(7) Report on training.--The report required by 
        paragraph (1) for a fiscal quarter shall include a 
        statement of the percentage of caseworkers, 
        supervisors, and new employees who received training to 
        carry out the State program funded under this part 
        during the quarter.''.

SEC. 502. ELIMINATION FROM SECRETARIAL REPORT TO THE CONGRESS OF 
                    INFORMATION ON OUT-OF-WEDLOCK PREGNANCIES.

  Section 411(b)(1)(B)(ii) (42 U.S.C. 611(b)(1)(B)(ii)) is 
amended by striking ``out-of-wedlock pregnancies and''.

SEC. 503. ACCESS TO WELFARE; WELFARE OUTCOMES.

  Section 411 (42 U.S.C. 611) is amended by adding at the end 
the following:
  ``(c) Annual Reports on Welfare Access and Outcomes.--
          ``(1) State reports.--Not later than January 1 of 
        each fiscal year, each eligible State shall collect and 
        report to the Secretary, with respect to the preceding 
        fiscal year, the following information:
                  ``(A) The number of applications for 
                assistance from the State program funded under 
                this part, the percentage that are approved 
                versus those that are disapproved, and the 
                reasons for disapproval, broken down by race.
                  ``(B) A copy of all rules and policies 
                governing the State program funded under this 
                part that are not required by Federal law, and 
                a summary of the rules and policies, including 
                the amounts and types of assistance provided 
                and the types of sanctions imposed under the 
                program.
                  ``(C) The types of occupations of, types of 
                job training received by, and types and levels 
                of educational attainment of recipients of 
                assistance from the State program funded under 
                this part, broken down by gender and race.
                  ``(D) The incidence of homelessness, of the 
                use of food pantries and soup kitchens, and of 
                the use of shelters among recipients of 
                assistance from the State program funded under 
                this part and among individuals to whom 
                assistance under the State programs funded are 
                this part has ended within the past 12 months. 
                The information described in this subparagraph 
                may be provided by submitting disaggregated 
                case record information on a sample of 
                families.
                  ``(E) The number of individuals to whom 
                assistance under the State program funded under 
                this part has ended during the year, broken 
                down by the reasons why the assistance has 
                ended (including employment, marriage, 
                sanction, time limit, or State policy.
                  ``(F) The economic conditions of individuals 
                to whom assistance under the State programs 
                funded are this part has ended, including the 
                types of occupations of, the duration of 
                employment of, the income of, the benefits 
                provided to, the types of job training received 
                by, the types and levels of educational 
                attainment of, and the incidence of 
                homelessness, of the use of food pantries or 
                soup kitchens, and of the use of shelters 
                among, such individuals, broken down by gender 
                and race.
                  ``(G) The effects of applying the 5-year time 
                limit to individuals who, in the absence of the 
                limit, would continue to be eligible for 
                assistance from the State program funded under 
                this part, including the economic and social 
                circumstances of the individuals, including 
                income, employment, homelessness, use of food 
                pantries or soup kitchens, and change in child 
                custody arrangements.
          ``(2) Use of sampling.--A State may comply with this 
        subsection by using a scientifically acceptable 
        sampling method approved by the Secretary.
          ``(3) Report to the congress.--Not later than June 1 
        of each fiscal year, the Secretary shall prepare and 
        submit to the Committee on Ways and Means of the House 
        of Representatives and the Committee on Finance of the 
        Senate, publish in the Federal Register, and make 
        available to the public a compilation of the reports 
        submitted pursuant to paragraph (1) for the preceding 
        fiscal year.''.

SEC. 504. ASSESSMENT OF REGIONAL ECONOMIES TO IDENTIFY HIGHER ENTRY 
                    LEVEL WAGE OPPORTUNITIES IN INDUSTRIES EXPERIENCING 
                    LABOR SHORTAGES.

  Section 411 (42 U.S.C. 611) is further amended by adding at 
the end the following:
  ``(d) Assessment of Regional Economies to Identify Higher 
Entry Level Wage Opportunities in Industries Experiencing Labor 
Shortages.--
          ``(1) In general.--An eligible State shall conduct 
        annually an assessment of its regional economies that 
        are experiencing a labor shortage and that provide 
        higher entry-level wage opportunities for job seekers 
        pursuant to section 402(a)(8).
          ``(2) Matters to be assessed.--
                  ``(A) Labor market.--The assessment shall--
                          ``(i) identify industries or 
                        occupations that have or expect to 
                        grow, that have or expect a loss of 
                        skilled workers, or that have a need 
                        for workers;
                          ``(ii) identify the entry-level 
                        education and skills requirements for 
                        the industries or occupations that have 
                        or expect a need for workers; and
                          ``(iii) analyze the entry-level wages 
                        and benefits in identified industries 
                        or occupations.
                  ``(B) Job seekers.--The assessment shall 
                create a profile of the characteristics of the 
                unemployed and underemployed residents of the 
                State, including educational attainment, 
                barriers to employment, geographic 
                concentrations, self-sufficiency needs, and 
                access to needed support services.
                  ``(C) Education and training 
                infrastructure.--The assessment shall create a 
                profile of the education, training, and support 
                services in place in the State to prepare 
                workers for the industries or occupations 
                identified pursuant to subparagraph (A).
                  ``(D) Aligning industries and job seekers.--
                The assessment shall compare the 
                characteristics of the industries or 
                occupations identified pursuant to subparagraph 
                (A) to the profile of the job seekers in the 
                State and the profile of the education and 
                training infrastructure in the State.
          ``(3) Sharing of information with localities.--The 
        State shall share with the political subdivisions of 
        the State information obtained pursuant to this 
        subsection regarding higher entry-wage job 
        opportunities in industries experiencing labor 
        shortages, and information regarding opportunities for 
        collaboration with institutions of higher education, 
        community-based organizations, and economic development 
        and welfare agencies.
          ``(4) Reports of assessment of regional economies.--
        Each eligible state shall submit to the Secretary 
        annually a report hat contains the annual assessment 
        conducted pursuant to this subsection.''.

SEC. 505. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

  Section 413 (42 U.S.C. 613) is amended--
          (1) in subsection (a), by striking the 2nd sentence;
          (2) in subsection (b)--
                  (A) in the subsection heading by striking 
                ``Welfare Dependency'' and inserting 
                ``Poverty''; and
                  (B) in paragraph (1), by striking ``welfare 
                dependency'' and inserting ``poverty'';
          (3) by striking subsections (d), (e), (g), and (j);
          (4) in subsection (h)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (B), by striking 
                        welfare dependency'' and inserting 
                        ``poverty''; and
                          (ii) in subparagraph (C), by striking 
                        ``(f)'' and inserting ``(d)''; and
                  (B) by adding at the end the following:
          ``(4) Technical assistance in assessing regional 
        economies.--
                  ``(A) In general.--The Secretary may provide 
                technical assistance to an eligible State to 
                enable the State to conduct the assessments 
                required by section 411(d).
                  ``(B) Limitations on authorization of 
                appropriations.--For the cost of providing 
                technical assistance under subparagraph (A), 
                there are authorized to be appropriated to the 
                Secretary not more than $1,500,000 for each of 
                fiscal years 200