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.

The Congress makes the following findings:

(1) The Temporary Assistance for Needy Families (TANF) Program established by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104–193) has succeeded in moving families from welfare to work and reducing child poverty.

(A) There has been a dramatic increase in the employment of current and former welfare recipients. The percentage of working recipients reached an all-time high in fiscal years 1999 and 2000. In fiscal year 1999, 33 percent of adult recipients were working, compared to less than 7 percent in fiscal year 1992, and 11 percent in fiscal year 1996. All States met the overall participation rate standard in fiscal year 2000, as did the District of Columbia and Puerto Rico.

(B) Earnings for welfare recipients remaining on the rolls have also increased significantly, as have earnings for female-headed households. The increases have been particularly large for the bottom 2 income quintiles, that is, those women who are most likely to be former or present welfare recipients.

(C) Welfare dependency has plummeted. As of September 2001, 2,103,000 families and 5,333,000 individuals were receiving assistance. Accordingly, the number of families in the welfare caseload and the number of individuals receiving cash assistance declined 52 percent and 56 percent, respectively, since the enactment of TANF. These declines have persisted even as unemployment rates have increased: unemployment rates nationwide rose 25 percent, from 3.9 percent in September 2000 to 4.9 percent in September 2001, while welfare caseloads continued to drop by 7 percent.

(D) The child poverty rate continued to decline between 1996 and 2000, falling 21 percent from 20.5 to 16.2 percent. The 2000 child poverty rate is the lowest since 1979. Child poverty rates for African-American and Hispanic children have also fallen dramatically during the past 6 years. African-American child poverty is at the lowest rate on record and Hispanic child poverty has had the largest 4-year decrease on record.

(E) Despite these gains, States have had mixed success in fully engaging welfare recipients in work activities. While all States have met the overall work participation rates required by law, in 2000, in an average month, only about 1.3 of all families with an adult participated in work activities that were countable toward the State’s participation rate. Eight jurisdictions failed to meet the more rigorous parent work requirements, and about 20 States are not subject to the 2-parent requirements, most because they moved their 2-parent cases to separate State programs where they are not subject to a penalty for failing the 2-parent rates.

(2) As a Nation, we have made substantial progress in reducing teen pregnancies and births, slowing increases in nonmarital childbearing, and improving child support collections and paternity establishment.

(A) The teen birth rate has fallen continuously since 1991, down a dramatic 22 percent by 2000. During the period of 1991–2000, teenage birth rates fell in all States and the District of Columbia, Puerto Rico, and the Virgin Islands. Declines also have spanned age, racial, and ethnic groups. There has been success in lowering the birth rate for both younger and older teens. The birth rate for those 15–17 years of age is down 29 percent since 1991, and the rate for those 18 and 19 is down 16 percent. Between 1991 and 2000, teen birth rates declined for all women ages 15–19—white, African American, American Indian, Asian or Pacific Islander, and Hispanic women ages 15–19. The rate for African American teens—until recently the highest—experienced the largest decline, down 31 percent from 1991 to 2000, to reach the lowest rate ever reported for this group. Most births to teens are nonmarital; in 2000, about 73 percent of the births to teens aged 15–19 occurred outside of marriage.

(B) Nonmarital childbearing continued to increase slightly in 2000, however not at the sharp rates of increase seen in recent decades. The birth rate among unmarried women in 2000 was 3.5 percent lower than its peak reached in 1994, while the proportion of births occurring outside of marriage has remained at approximately 33 percent since 1998.

(C) The negative consequences of out-of-wedlock birth on the mother, the child, the family, and society are well documented. These include increased likelihood of welfare dependency, increased risks of low birth weight, poor cognitive development, child abuse and neglect, and teen parenthood, and decreased likelihood of having an intact marriage during adulthood.

(D) An estimated 23,900,000 children do not live with their biological father. 16,000,000 children live with their mother only. These facts are attributable largely to declining marriage rates, increasing divorce rates, and increasing rates of nonmarital births during the latter part of the 20th century.

(E) There has been a dramatic rise in cohabitation as marriages have declined. Only 40 percent of children of cohabiting couples will see their parents marry. Those who do marry experience a 50 percent higher divorce rate. Children in single-parent households and cohabiting households are at much higher risk of child abuse than children in intact married and stepparent families.

(F) Children who live apart from their biological fathers, on average, are more likely to be poor, experience educational, health, emotional, and psychological problems, be victims of child abuse, engage in criminal behavior, and become involved with the juvenile justice system than their peers who live with their married, biological mother and father. A child living in a single-parent family is nearly 5 times as likely to be poor as a child living in a married-couple family. In married-couple families, the child poverty rate is 8.1 percent, in households headed by a single mother, the poverty rate is 39.7 percent.

(G) Since the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, child support collections within the child support enforcement system have grown every year, increasing from $12,000,000,000 in fiscal year 1996 to nearly $19,000,000,000 in fiscal year 2001. The number of paternities established or acknowledged in fiscal year 2002 reached an historic high of over 1,500,000—which includes a nearly 100 percent increase through in-hospital acknowledgement programs to 688,510 in 2000 from 349,356 in 1996. Child support collections were made in over 7,000,000 cases in fiscal year 2000, significantly more than the almost 4,000,000 cases having a collection in 1996.

(3) The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 gave States great flexibility in the use of Federal funds to develop innovative programs to help families leave welfare and begin employment and to encourage the formation of 2-parent families.

(A) Total Federal and State TANF expenditures in fiscal year 2000 were $24,000,000,000, up from $22,600,000,000 for the previous year. This increased spending is attributable to significant new investments in supportive services in the TANF program, such as child care and activities to support work.

(B) Since the welfare reform effort began there has been a dramatic increase in work participation (including employment, community service, and work experience) among welfare recipients, as well as an unprecedented reduction in the caseload because recipients have left welfare for work.

(C) States are making policy choices and investment decisions best suited to the needs of their citizens.

(i) To expand aid to working families, all States disregard a portion of a family’s earned income when determining benefit levels.

(ii) Most States increased the limits on countable assets above the former Aid to Families with Dependent Children (AFDC) program. Every State has increased the vehicle asset level above the prior AFDC limit for a family’s primary automobile.

(iii) States are experimenting with programs to promote marriage and father involvement. Over half the States have eliminated restrictions on 2-parent families. Many States use TANF, child support, or State funds to support community-based activities to help fathers become more involved in their children’s lives or strengthen relationships between mothers and fathers.

(4) Therefore, it is the sense of the Congress that increasing success in moving families from welfare to work, as well as in promoting healthy marriage and other means of improving child well-being, are very important Government interests and the policy contained in part A of title IV of the Social Security Act (as amended by this Act) is intended to serve these ends.

Section 401(a) (42 U.S.C. 601(a)) is amended—

(1) in the matter preceding paragraph (1), by striking ‘‘increase’’ and inserting ‘‘improve child well-being by increasing’’;

(2) in paragraph (1), by inserting ‘‘and services’’ after ‘‘assistance’’; and

(3) in paragraph (4), by striking ‘‘two-parent families’’ and inserting ‘‘healthy, 2-parent married families, and encourage responsible fatherhood.’’.

(a) EXTENSION OF AUTHORITY.— Section 403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is amended—

(1) by striking ‘‘1996, 1997, 1998, 1999, 2000, 2001, and 2002’’ and inserting ‘‘2003 through 2007’’; and

(2) by inserting ‘‘payable to the State for the fiscal year’’ before the period.

(b) STATE FAMILY ASSISTANCE GRANT.— Section 403(a)(1) (42 U.S.C. 603(a)(1)) is amended by striking subparagraphs (B) through (E) and inserting the following:

‘‘(B) STATE FAMILY ASSISTANCE GRANT.— The State family assistance grant payable to a State for a fiscal year shall be the amount that bears the same ratio to the amount specified in subparagraph (C) of this paragraph as the amount required to be paid to the State under this paragraph for fiscal year 2002 (determined without regard to any reduction pursuant to section 412(a)(1)) bears to the total amount required to be paid under this paragraph for fiscal year 2002.

‘‘(C) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2003 through 2007 $16,566,542,000 for grants under this paragraph.’’.

(c) MATCHING GRANTS FOR THE TERRITORIES.— Section 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by striking ‘‘1997 through ‘‘2002’’ and inserting ‘‘2003 through 2007’’.

(a) STATE PLANS.—Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the following:

(b) HEALTHY MARRIAGE PROMOTION GRANTS; REPEAL OF BONUS FOR REDUCTION OF ILLEGITIMACY RATIO.—Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as follows:

‘‘(2) HEALTHY MARRIAGE PROMOTION GRANTS.—

‘‘(A) AUTHORITY.—The Secretary shall award competitive grants to States, territories, and tribal organizations for not more than 50 percent of the cost of developing and implementing innovative programs to promote and support healthy, married, 2-parent families and reduce out-of-wedlock births.

‘‘(B) HEALTHY MARRIAGE PROMOTION ACTIVITIES.—Funds provided under subparagraph (A) shall be used to support any of the following programs or activities:

‘‘(i) Public advertising campaigns on the value of marriage and the skills needed to increase marital stability and health.

‘‘(ii) Education in high schools on the value of marriage, relationship skills, and budgeting.

‘‘(iii) Marriage education and marriage skills programs for non-married pregnant women and non-married expectant fathers.

‘‘(iv) Pre-marital education and marriage skills training for engaged couples and for couples interested in marriage.

‘‘(v) Marriage enhancement and marriage skills training programs for married couples.

‘‘(vi) Divorce reduction programs that teach relationship skills.

‘‘(vii) Marriage mentoring programs which use married couples as role models and mentors in at-risk communities.

‘‘(viii) Programs to reduce the disincentives to marriage in means-tested aid programs, if offered in conjunction with any activity described in this subparagraph.

‘‘(C) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2003 through 2007 $100,000,000 for grants under this paragraph.’’.

(c) COUNTING OF SPENDING ON NON-ELIGIBLE FAMILIES TO PREVENT AND REDUCE INCIDENCE OF OUT-OF-WEDLOCK BIRTHS, ENCOURAGE FORMATION AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED FAMILIES, OR ENCOURAGE RESPONSIBLE FATHERHOOD.—Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is amended by adding at the end the following:

Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is amended—

(1) in clause (i), by striking ‘‘fiscal year 2002’’ and inserting ‘‘each of fiscal years 2002 through 2007’’;

(2) in clause (ii), by striking ‘‘2002’’ and inserting ‘‘2007’’; and

(3) in clause (iii), by striking ‘‘fiscal year 2002’’ and inserting ‘‘each of fiscal years 2002 through 2007’’.

(a) REALLOCATION OF FUNDING.—Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended—

(1) in the paragraph heading, by striking ‘‘HIGH PERFORMANCE STATES’’ and inserting ‘‘EMPLOYMENT ACHIEVEMENT’’;

(2) in subparagraph (D)(ii)—

(A) in subclause (I), by striking ‘‘equals $200,000,000’’ and inserting ‘‘(other than 2003) equals $200,000,000, and for bonus year 2003 equals $100,000,000’’; and

(B) in subclause (II), by striking ‘‘$1,000,000,000’’ and inserting ‘‘$900,000,000’’; and

(3) in subparagraph (F), by striking ‘‘$1,000,000,000’’ and inserting ‘‘$900,000,000’’.

(b) BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.—

(1) IN GENERAL.—Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended by striking subparagraphs (A) through (F) and inserting the following:

‘‘(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 an employment achievement State.

‘‘(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 an employment achievement State for a bonus year, which shall be based on the performance of the State as determined under subparagraph (D)(i) for the fiscal year that immediately precedes the bonus year.

‘‘(ii) LIMITATION.—The amount 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.—

‘‘(i) IN GENERAL.—Subject to clause (ii), not later than October 1, 2003, the Secretary, in consultation with the National Governors Association and the American Public Human Services Association, shall develop a formula for measuring State performance in operating the State program funded under this part so as to achieve the goals of employment entry, job retention, and increased earnings from employment for families receiving assistance under the program, as measured on an absolute basis and on the basis of improvement in State performance.

‘‘(ii) SPECIAL RULE FOR BONUS YEAR 2004.—For the purposes of awarding a bonus under this paragraph for bonus year 2004, the Secretary may measure the performance of a State in fiscal year 2003 using the job entry rate, job retention rate, and earnings gain rate components of the formula developed under section 403(a)(4)(C) as in effect immediately before the effective date of this paragraph.

‘‘(D) DETERMINATION OF STATE PERFORMANCE.—For each bonus year, the Secretary shall—

‘‘(i) use the formula developed under subparagraph (C) to determine the performance of each eligible State for the fiscal year that precedes the bonus year; and

‘‘(ii) prescribe performance standards 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 $100,000,000; and

‘‘(II) the total amount of grants to be made under this paragraph for all bonus years equals $500,000,000.

‘‘(E) DEFINITIONS.—In this paragraph:

‘‘(i) BONUS YEAR.—The term ‘bonus year’ means each of fiscal years 2004 through 2008.

‘‘(ii) EMPLOYMENT ACHIEVEMENT STATE.—The term ‘employment achievement State’ means, with respect to a bonus year, an eligible State whose performance determined pursuant to subparagraph (D)(i) for the fiscal year preceding the bonus year equals or exceeds the performance standards prescribed under subparagraph (D)(ii) 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 2004 through 2008 $500,000,000 for grants under this paragraph.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect on October 1, 2003. 21

(a) DEPOSITS INTO FUND.—Section 403(b)(2) (42 U.S.C. 603(b)(2)) is amended—

(1) by striking ‘‘1997, 1998, 1999, 2000, 2001, and 2002’’ and inserting ‘‘2003 through 2007’’; and

(2) by striking all that follows ‘‘$2,000,000,000’’ and inserting a period.

(b) GRANTS.—Section 403(b)(3)(C)(ii) (42 U.S.C. 603(b)(3)(C)(ii)) is amended by striking ‘‘fiscal years 1997 through 2002’’ and inserting ‘‘fiscal years 2003 through 2007’’.

(c) DEFINITION OF NEEDY STATE.—Clauses (i) and (ii) of section 403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are amended by inserting after ‘‘1996’’ the following: ‘‘, and the Food Stamp Act of 1977 as in effect during the corresponding 3-month period in the fiscal year preceding such most recently concluded 3-month period,’’.

(d) ANNUAL RECONCILIATION: FEDERAL MATCHING OF STATE EXPENDITURES ABOVE ‘‘MAINTENANCE OF EFFORT’’ LEVEL.—Section 403(b)(6) (42 U.S.C. 603(b)(6)) is amended—

(1) in subparagraph (A)(ii)—

(A) by adding ‘‘and’’ at the end of subclause (I);

(B) by striking ‘‘; and’’ at the end of subclause (II) and inserting a period; and

(C) by striking subclause (III);

(2) in subparagraph (B)(i)(II), by striking all that follows ‘‘section 409(a)(7)(B)(iii))’’ and inserting a period;

(3) by amending subparagraph (B)(ii)(I) to read as follows:

‘‘(I) the qualified State expenditures (as defined in section 409(a)(7)(B)(i)) for the fiscal year; plus’’; and

(4) by striking subparagraph (C).

(e) CONSIDERATION OF CERTAIN CHILD CARE EXPENDITURES IN DETERMINING STATE COMPLIANCE WITH CONTINGENCY FUND MAINTENANCE OF EFFORT REQUIREMENT.—Section 409(a)(10) (42 U.S.C. 609(a)(10)) is amended—

(1) by striking ‘‘(other than the expenditures described in subclause (I)(bb) of that paragraph) under the State program funded under this part’’; and

(2) by striking ‘‘excluding any amount expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during fiscal year 1994) for fiscal year 1994,’’.

(a) GENERAL RULES.—Section 404(a)(2) (42 U.S.C. 604(a)(2)) is amended by striking ‘‘in any manner that’’ and inserting ‘‘for any purposes or activities for which’’.

(b) TREATMENT OF INTERSTATE IMMIGRANTS.—

(1) STATE PLAN PROVISION.—Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended by striking clause (i) and redesignating clauses (ii) through (iv) as clauses (i) through (iii), respectively.

(2) USE OF FUNDS.—Section 404 (42 U.S.C. 604) is amended by striking subsection (c).

(c) INCREASE IN AMOUNT TRANSFERABLE TO CHILD CARE.—Section 404(d)(1) (42 U.S.C. 604(d)(1)) is amended by striking ‘‘30’’ and inserting ‘‘50’’.

(d) INCREASE IN AMOUNT TRANSFERABLE TO TITLE XX PROGRAMS.—Section 404(d)(2)(B) (42 U.S.C. 604(d)(2)(B)) is amended to read as follows:

‘‘(B) APPLICABLE PERCENT.—For purposes of subparagraph (A), the applicable percent is—

‘‘(i) 4.25 percent for fiscal year 2003;

‘‘(ii) 5 percent for fiscal year 2004;

‘‘(iii) 6 percent for fiscal year 2005;

‘‘(iv) 8 percent for fiscal 9year 2006; and

‘‘(v) 10 percent for fiscal year 2007 and each succeeding fiscal year.’’.

(e) CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS AND SERVICES.—Section 404(e) (42 U.S.C. 604(e)) is amended to read as follows:

‘‘(e) AUTHORITY TO CARRY OVER OR RESERVE CERTAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FUTURE CONTINGENCIES.—

‘‘(1) CARRYOVER.—A State or tribe may use a grant made to the State or tribe under this part to provide, without fiscal year limitation, any benefit or service that may be provided under the State or tribal program funded under this part.

‘‘(2) CONTINGENCY RESERVE.—A State or tribe may designate any portion of a grant made to the State or tribe under this part as a contingency reserve for future needs, and may use any amount so designated to provide, without fiscal year limitation, any benefit or service that may be provided under the State or tribal program funded under this part. If a State or tribe so designates a portion of such a grant, the State shall, on an annual basis, include in its report under section 411(a) the amount so designated.’’.

(a) REPEAL.—Section 406 (42 U.S.C. 606) is repealed.

(b) CONFORMING AMENDMENTS.—

(1) Section 409(a) (42 U.S.C. 609(a)) is amended by striking paragraph (6).

(2) Section 412 (42 U.S.C. 612) is amended by striking subsection (f) and redesignating subsection (g) as subsection (f).

(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by striking ‘‘406,’’.

(a) MODIFICATION OF STATE PLAN REQUIREMENTS.—Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended by striking clauses (ii) and (iii) and inserting the following:

‘‘(ii) Require a parent or caretaker receiving assistance under the program to engage in work or alternative self-sufficiency activities (as defined by the State), consistent with section 407(e)(2).

‘‘(iii) Require families receiving assistance under the program to engage in activities in accordance with family self-sufficiency plans developed pursuant to section 408(b).’’.

(b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY PLANS.—

(1) IN GENERAL.—Section 408(b) (42 U.S.C. 608(b)) is amended to read as follows:

‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.—

‘‘(1) IN GENERAL.—A State to which a grant is made under section 403 shall—

‘‘(A) establish for each family receiving assistance under the State program funded under this part a self-sufficiency plan that specifies appropriate activities described in the State plan submitted pursuant to section 402, including direct work activities as appropriate designed to assist the family in achieving their maximum degree of self-sufficiency;

‘‘(B) require, at a minimum, each member of the family who is a work-eligible individual (as defined in section 407(b)(2)(C)) to participate in activities in accordance with the selfsufficiency plan;

‘‘(C) monitor the participation of such family members in the activities and the progress of the family toward self-sufficiency;

‘‘(D) regularly review the self-sufficiency plan; and

‘‘(E) revise the self-sufficiency plan as appropriate.

‘‘(2) TIMING.—The State shall comply with paragraph (1) with respect to a family—

‘‘(A) in the case of a family that, as of October 1, 2002, is not receiving assistance from the State program funded under this part, not later than 60 days after the family first receives assistance on the basis of the most recent application for the assistance; or

‘‘(B) in the case of a family that, as of such date, is receiving the assistance, not later than 12 months after the date of the enactment of this subsection.’’.

(2) PENALTY FOR FAILURE TO ESTABLISH FAMILY SELF-SUFFICIENCY PLAN.—Section 409(a)(3) (42 U.S.C. 609(a)(3)) is amended—

(A) in the paragraph heading, by inserting ‘‘OR ESTABLISH FAMILY SELF-SUFFICIENCY PLAN’’ after ‘‘RATES’’; and

(B) in subparagraph (A), by inserting ‘‘or 408(b)’’ after ‘‘407(a)’’.

(a) IN GENERAL.—Section 407 (42 U.S.C. 607) is amended by striking all that precedes subsection (b)(3) and inserting the following:

‘‘SEC. 407. WORK PARTICIPATION REQUIREMENTS.

‘‘(a) PARTICIPATION RATE REQUIREMENTS.—A State to which a grant is made under section 403 for a fiscal year shall achieve a minimum participation rate equal to not less than—

‘‘(1) 50 percent for fiscal year 2003;

‘‘(2) 55 percent for fiscal year 2004;

‘‘(3) 60 percent for fiscal year 2005;

‘‘(4) 65 percent for fiscal year 2006; and

‘‘(5) 70 percent for fiscal year 2007 and each succeeding fiscal year.

‘‘(b) CALCULATION OF PARTICIPATION RATES.—

‘‘(1) AVERAGE MONTHLY RATE.—For purposes of subsection (a), the participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year.

‘‘(2) MONTHLY PARTICIPATION RATES; INCORPORATION OF 40-HOUR WORK WEEK STANDARD.—

‘‘(A) IN GENERAL.—For purposes of paragraph (1), the participation rate of a State for a month is—

‘‘(i) the total number of countable hours (as defined in subsection (c)) with respect to the counted families for the State for the month; divided by

‘‘(ii) 160 multiplied by the number of counted families for the State for the month. 7

‘‘(B) COUNTED FAMILIES DEFINED.—

‘‘(i) IN GENERAL.—In subparagraph (A), the term ‘counted family’ means, with respect to a State and a month, a family that includes a work-eligible individual and that receives assistance in the month under the State program funded under this part, subject to clause (ii).

‘‘(ii) STATE OPTION TO EXCLUDE CERTAIN FAMILIES.—At the option of a State, the term ‘counted family’ shall not include—

‘‘(I) a family in the first month for which the family receives assistance from a State program funded under this part on the basis of the most recent application for such assistance; or

‘‘(II) a family in which the youngest child has not attained 12 months of age, except to the extent that the State, on a case-by-case basis, has elected to permit or require the family to engage in direct work activities or other activities specified by the State.

‘‘(iii) STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY ASSISTANCE PLAN OR TRIBAL WORK PROGRAM.—At the option of a State, the term ‘counted family’ may include families in the State that are receiving assistance under a tribal family assistance plan approved under section 412 or under a tribal work program to which funds are provided under this part.

‘‘(C) WORK-ELIGIBLE INDIVIDUAL DEFINED.—In this section, the term ‘work-eligible individual’ means an individual—

‘‘(i) who is married or a single head of household; and

‘‘(ii) whose needs are (or, but for sanctions under this part that have been in effect for more than 3 months (whether or not consecutive) in the preceding 12 months or under part D, would be) included in determining the amount of cash assistance to be provided to the family under the State program funded under this part.’’.

(b) RECALIBRATION OF CASELOAD REDUCTION CREDIT.—Section 407(b)(3)(A)(ii) (42 U.S.C. 607(b)(3)(A)(ii)) is amended to read as follows:

‘‘(ii) the average monthly number of families that received assistance under the State program funded under this part during—

‘‘(I) if the fiscal year is fiscal year 2003, fiscal year 1996;

‘‘(II) if the fiscal year is fiscal year 2004, fiscal year 1998; or

‘‘(III) if the fiscal year is fiscal year 2005, fiscal year 2001; or

‘‘(IV) if the fiscal year is fiscal year 2006, fiscal year 2002; or

‘‘(V) if the fiscal year is fiscal year 2007, fiscal year 2003.’’.

(c) COUNTABLE HOURS.—Section 407 of such Act (42 U.S.C. 607) is amended by striking subsections (c) and (d) and inserting the following:

‘‘(c) COUNTABLE HOURS.—

‘‘(1) DEFINITION.—In subsection (b)(2), the term ‘countable hours’ means, with respect to a family for a month, the total number of hours in the month in which any member of the family who is a work-eligible individual is engaged in a direct work activity or other activity specified by the State, subject to the other provisions of this subsection.

‘‘(2) LIMITATIONS.—Subject to such regulations as the Secretary may prescribe:

‘‘(A) MINIMUM WEEKLY AVERAGE OF 24 HOURS OF DIRECT WORK ACTIVITIES REQUIRED.—If the work-eligible individuals in a family are engaged in a direct work activity for an average total of fewer than 24 hours per week in a month, then the number of countable hours with respect to the family for the month shall be zero.

‘‘(B) MAXIMUM WEEKLY AVERAGE OF 16 HOURS OF OTHER ACTIVITIES.—An average of not more than 16 hours per week of other activities referred to in paragraph (1) may be considered countable hours in a month with respect to a family.

‘‘(3) SPECIAL RULES.—For purposes of paragraph (1):

‘‘(A) PARTICIPATION IN QUALIFIED ACTIVITIES.—

‘‘(i) IN GENERAL.—If, with the approval of the State, the work-eligible individuals in a family are engaged in 1 or more qualified activities for an average total of at least 24 hours per week in a month, then all such engagement in the month shall be considered engagement in a direct work activity, subject to clause (iii).

‘‘(ii) QUALIFIED ACTIVITY DEFINED.—The term ‘qualified activity’ means an activity specified by the State, including a program meeting such standards and criteria as the State may specify, excluding a program that does not address a purpose specified in section 401(a), but including a program that provides—

‘‘(I) substance abuse counseling or treatment;

‘‘(II) rehabilitation treatment and services;

‘‘(III) work-related education or training directed effectively at enabling the family member to work; or

‘‘(IV) job search or job readiness assistance.

‘‘(iii) LIMITATION.—Clause (i) may not be applied to a family for more than 3 consecutive months in any period of 24 consecutive months.

‘‘(B) SCHOOL ATTENDANCE BY TEEN HEAD OF HOUSEHOLD.—A family shall be considered to be engaged in a direct work activity for an average of 40 hours per week in a month if the family includes an individual who is married or is a single head of household who has not attained 20 years of age, and the individual—

‘‘(i) maintains satisfactory attendance at secondary school or the equivalent in the month; or

‘‘(ii) participates in education directly related to employment for an average of at least 20 hours per week in the month.

‘‘(d) DIRECT WORK ACTIVITIES.—In this section, the term ‘direct work activities’ means—

‘‘(1) unsubsidized employment;

‘‘(2) subsidized private sector employment;

‘‘(3) subsidized public sector employment;

‘‘(4) on-the-job training;

‘‘(5) supervised work experience; or

‘‘(6) supervised community service.

(d) PENALTIES AGAINST INDIVIDUALS.—Section 407(e) (42 U.S.C. 607(e)) is amended—

(1) in paragraph (1), in the matter that precedes subparagraph (A)—

(A) by striking ‘‘work’’ and inserting ‘‘activities’’; and

(B) by inserting ‘‘and the family does not otherwise engage in activities in accordance with the self-sufficiency plan established for the family pursuant to section 408(b) for the number of hours required by the self-sufficiency plan,’’ before ‘‘the State shall’’; and

(2) in paragraph (2)—

(A) in the matter that precedes subparagraph (A), by striking ‘‘work’’ and inserting ‘‘activities’’; and

(B) in subparagraph (A), by striking ‘‘work’’ and inserting ‘‘activity’’.

(e) CONFORMING AMENDMENTS.—

(1) Section 404(k)(1)(D) (42 U.S.C. 604(k)(1)(D)) is amended by striking ‘‘work activities (as defined in section 407(d)’’ and inserting ‘‘direct work activities’’.

(2) Section 407(b) (42 U.S.C. 607(b)) is amended by striking paragraphs (4) and (5).

(3) Section 407(f) (42 U.S.C. 607(f)) is amended in each of paragraphs (1) and (2) by striking ‘‘work activity described in subsection (d)’’ and inserting ‘‘direct work activity’’.

(4) The heading of section 409(a)(14) (42 U.S.C. 609(a)(14)) is amended by inserting ‘‘OR REFUSING TO ENGAGE IN ACTIVITIES UNDER A FAMILY SELF-SUFFICIENCY PLAN’’ after ‘‘WORK’’.

(a) IN GENERAL.—Section 409(a)(7) (42 U.S.C. 609(a)(7)) is amended—

(1) in subparagraph (A) by striking ‘‘fiscal year 1998, 1999, 2000, 2001, 2002, or 2003’’ and inserting ‘‘fiscal year 2003, 2004, 2005, 2006, 2007 or 2008’’; and

(2) in subparagraph (B)(ii)—

(A) by inserting ‘‘preceding’’ before ‘‘fiscal year’’; and

(B) by striking ‘‘for fiscal years 1997 through 2002,’’.

(b) STATE SPENDING ON PROMOTING HEALTHY MARRIAGE.—

(a) STATE PLANS.—Section 402(a)(1) (42 U.S.C. 602(a)(1)) is amended—

(1) in subparagraph (A)—

(A) by redesignating clauses (vi) and (vii) (as added by section 103(a) of this Act) as clauses (vii) and (viii); and

(B) by striking clause (v) and inserting the following:

‘‘(v) Establish annual, specific numerical performance goals, measures, measurement methodology, and plans to improve outcomes with respect to each of the 4 program purposes described in section 401(a).

‘‘(vi) Describe any strategies the State may be undertaking to address—

‘‘(I) employment retention and advancement for recipients of assistance under the program, including placement into high-demand jobs, consistent with the criteria used by the Secretary in establishing performance targets in regulations prescribed under section 403(a)(4)(B);

‘‘(II) efforts to reduce teen pregnancy;

‘‘(III) services for struggling and noncompliant families, and for clients with special problems; and

‘‘(IV) program integration, including the extent to which employment and training services under the program are provided through the One-Stop Career Center System created under the Workforce Investment Act of 1998, and the extent to which former recipients of such assistance have access to additional core, intensive, or training services funded through such Act.’’; and

(2) in subparagraph (B), by striking clause (iv) and inserting the following:

‘‘(iv) The document shall describe strategies to engage faith-based organizations in the provision of services funded under this part and efforts related to section 104 of the Personal Responsibility and Work Opportunity Reconcilation Act of 1996.

‘‘(v) The document shall describe strategies to improve program management and performance.’’.

(b) PERFORMANCE MEASURES.—Section 413 (42 U.S.C. 613) is amended by adding at the end the following:

(c) ANNUAL RANKING OF STATES.—Section 413(d)(1) (42 U.S.C. 613(d)(1)) is amended by striking ‘‘long-term private sector jobs’’ and inserting ‘‘private sector jobs, the success of the recipients in retaining employment, the ability of the recipients to increase their wages,’’.

(a) CONTENTS OF REPORT.—Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended—

(1) in clause (vii), by inserting ‘‘and minor parent’’ after ‘‘of each adult’’;

(2) in clause (viii), by striking ‘‘and educational level’’;

(3) in clause (ix), by striking ‘‘, and if the latter 2, the amount received’’;

(4) in clause (x)—

(A) by striking ‘‘each type of’’; and

(B) by inserting before the period ‘‘and, if applicable, the reason for receipt of the assistance for a total of more than 60 months’’;

(5) in clause (xi), by striking the subclauses and inserting the following:

‘‘(I) Subsidized private sector employment.

‘‘(II) Unsubsidized employment.

‘‘(III) Public sector employment, supervised work experience, or supervised community service.

‘‘(IV) On-the-job training.

‘‘(V) Job search and placement.

‘‘(VI) Training.

‘‘(VII) Education.

‘‘(VIII) Other activities directed at the purposes of this part, as specified in the State plan submitted pursuant to section 402.’’;

(6) in clause (xii), by inserting ‘‘and progress toward universal engagement’’ after ‘‘participation rates’’;

(7) in clause (xiii), by striking ‘‘type and’’ before ‘‘amount of assistance’’;

(8) in clause (xvi), by striking subclause (II) and redesignating subclauses (III) through (V) as subclauses (II) through (IV), respectively; and

(9) by adding at the end the following:

‘‘(xviii) The date the family first received assistance from the State program on the basis of the most recent application for such assistance.

‘‘(xix) Whether a self-sufficiency plan is established for the family in accordance with section 408(b).

‘‘(xx) With respect to any child in the family, the marital status of the parents or guardians of the child and whether the parents or guardians are living.’’.

(b) USE OF SAMPLES.—Section 411(a)(1)(B) (42 U.S.C. 611(a)(1)(B)) is amended—

(1) in clause (i)—

(A) by striking ‘‘a sample’’ and inserting ‘‘samples’’; and

(B) by inserting before the period ‘‘, except that the Secretary may designate core data elements that must be reported on all families’’; and

(2) in clause (ii), by striking ‘‘funded under this part’’ and inserting ‘‘described in subparagraph (A)’’.

(c) REPORT ON FAMILIES THAT BECOME INELIGIBLE TO RECEIVE ASSISTANCE.—Section 411(a) (42 U.S.C. 611(a)) is amended—

(1) by striking paragraph (5);

(2) by redesignating paragraph (6) as paragraph (5); and

(3) by inserting after paragraph (5) (as so redesignated) the following:

‘‘(6) REPORT ON FAMILIES THAT BECOME INELIGIBLE TO RECEIVE ASSISTANCE.—The report required by paragraph (1) for a fiscal quarter shall include for each month in the quarter the number of families and total number of individuals that, during the month, became ineligible to receive assistance under the State program funded under this part (broken down by the number of families that become so ineligible due to earnings, changes in family composition that result in increased earnings, sanctions, time limits, or other specified reasons).’’.

(e) REGULATIONS.—Section 411(a)(7) (42 U.S.C. 611(a)(7)) is amended—

(1) by inserting ‘‘and to collect the necessary data’’ before ‘‘with respect to which reports’’;

(2) by striking ‘‘subsection’’ and inserting ‘‘section’’; and

(3) by striking ‘‘in defining the data elements’’ and all that follows and inserting ‘‘, the National Governors’ Association, the American Public Human Services Association, the National Conference of State Legislators, and others in defining the data elements.’’.

(f) ADDITIONAL REPORTS BY STATES.—Section 411 (42 U.S.C. 611) is amended—

(1) by redesignating subsection (b) as subsection (e); and

(2) by inserting after subsection (a) the following:

‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERISTICS.—Not later than 90 days after the end of each fiscal year, each eligible State shall submit to the Secretary a report on the characteristics of the State program funded under this part and other State programs funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)). The report shall include, with respect to each such program, the program name, a description of program activities, the program purpose, the program eligibility criteria, the sources of program funding, the number of program beneficiaries, sanction policies, and any program work requirements.

‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not later than 3 months after the end of a calendar month that begins 1 year or more after the enactment of this subsection, each eligible State shall submit to the Secretary report on the number of families and total number of individuals receiving assistance in the calendar month under the State program funded under this part.

‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVEMENT.—Beginning with fiscal year 2004, not later than January 1 of each fiscal year, each eligible State shall submit to the Secretary a report on achievement and improvement during the preceding fiscal year under the numerical performance goals and measures under the State program funded under this part with respect to each of the matters described in section 402(a)(1)(A)(v).’’.

(g) ANNUAL REPORTS TO CONGRESS BY THE SECRETARY.—Section 411(e), as so redesignated by subsection (f) of this section, is amended—

(1) in the matter preceding paragraph (1), by striking ‘‘and each fiscal year thereafter’’ and inserting ‘‘and by July 1 of each fiscal year thereafter’’;

(2) in paragraph (2), by striking ‘‘families applying for assistance,’’ and by striking the last comma; and

(3) in paragraph (3), by inserting ‘‘and other programs funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i))’’ before the semicolon. 13

(a) TRIBAL FAMILY ASSISTANCE GRANT.—Section 412(a)(1) (42 U.S.C. 612(a)(1)) is amended by striking ‘‘1997, 1998, 1999, 2000, and 2001’’ and inserting ‘‘2003 through 2007’’.

(b) GRANTS FOR INDIAN TRIBES THAT RECEIVED JOBS FUNDS.—Section 412(a)(2) (42 U.S.C. 612(a)(2)) is amended by striking ‘‘1997, 1998, 1999, 2000, and 2001’’ and inserting ‘‘2003 through 2007’’.

(a) SECRETARY’S FUND FOR RESEARCH, DEMONSTRATIONS, AND TECHNICAL ASSISTANCE.—Section 413 (42 U.S.C. 613), as amended by section 112 of this Act, is further amended by adding at the end the following:

(b) FUNDING OF STUDIES AND DEMONSTRATIONS.— Section 413(h) (42 U.S.C. 613(h)) is amended by striking ‘‘1997 through 2002’’ and inserting ‘‘2003 through 2007’’.

Section 414(b) (42 U.S.C. 614(b)) is amended by striking ‘‘1996,’’ and all that follows through ‘‘2002’’ and inserting ‘‘2003 through 2007’’.

Section 415 (42 U.S.C. 615) is repealed.

(a) IN GENERAL.—Section 419 (42 U.S.C. 619) is amended by adding at the end the following:

‘‘(6) ASSISTANCE.—

‘‘(A) IN GENERAL.—The term ‘assistance’ means payment, by cash, voucher, or other means, to or for an individual or family for the purpose of meeting a subsistence need of the individual or family (including food, clothing, shelter, and related items, but not including costs of transportation or child care).

‘‘(B) EXCEPTION.—The term ‘assistance’ does not include a payment described in subparagraph (A) to or for an individual or family on a short-term, nonrecurring basis (as defined by the State in accordance with regulations prescribed by the Secretary).’’.

(b) CONFORMING AMENDMENTS.—

(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by striking ‘‘assistance’’ and inserting ‘‘aid’’.

(2) Section 404(f) (42 U.S.C. 604(f)) is amended by striking ‘‘assistance’’ and inserting ‘‘benefits or services’’

(3) Section 408(a)(5)(B)(i) (42 U.S.C. 608(a)(5)(B)(i)) is amended in the heading by striking ‘‘ASSISTANCE’’ and inserting ‘‘AID’’.

(a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended by inserting a comma after ‘‘appropriate’’.

(b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 611(a)(1)(A)(ii)(III)) is amended by striking the last close parenthesis.

(c) Section 413(j)(2)(A) (42 U.S.C. 613(i)(2)(A)) is amended by striking ‘‘section’’ and inserting ‘‘sections’’.

(d)

(1) Section 413 (42 U.S.C. 613) is amended by striking subsection (g) and redesignating subsections (h) through (i) and subsections (k) and (l) (as added by sections 112(b) and 115(a) of this Act, respectively) as subsections (g) through (k), respectively.

(2) Each of the following provisions is amended by striking ‘‘413(j)’’ and inserting ‘‘413(i)’’:

(A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C. 603(a)(5)(A)(ii)(III)).

(B) Section 403(a)(5)(F) (42 U.S.C. 603(a)(5)(F)).

(C) Section 403(a)(5)(G)(ii) (42 U.S.C. 603(a)(5)(G)(ii)).

(D) Section 412(a)(3)(B)(iv) (42 U.S.C. 612(a)(3)(B)(iv)).

(a) SHORT TITLE.—This section may be cited as the ‘‘Promotion and Support of Responsible Fatherhood and Healthy Marriage Act of 2002’’.

(b) FATHERHOOD PROGRAM.—Title IV (42 U.S.C. 601–619) is amended by inserting after part B the following:

‘‘(a) FINDINGS.—The Congress finds that there is substantial evidence strongly indicating the urgent need to promote and support involved, committed, and responsible fatherhood, and to encourage and support healthy marriages between parents raising children, including data demonstrating the following:

‘‘(1) In approximately 90 percent of cases where a parent is absent, that parent is the father.

‘‘(2) By some estimates, 60 percent of children born in the 1990’s will spend a significant portion of their childhood in a home without a father.

‘‘(3) Nearly 75 percent of children in single-parent homes will experience poverty before they are 11 years old, compared with only 20 percent of children in 2-parent families.

‘‘(4) Low income is positively correlated with children’s difficulties with education, social adjustment, and delinquency, and single-parent households constitute a disproportionate share of low-income households.

‘‘(5) Where families (whether intact or with a parent absent) are living in poverty, a significant factor is the father’s lack of job skills.

‘‘(6) Children raised in 2-parent married families, on average, fare better as a group in key areas, including better school performance, reduced rates of substance abuse, crime, and delinquency, fewer health, emotional, and behavioral problems, lower rates of teenage sexual activity, less risk of abuse or neglect, and lower risk of teen suicide.

‘‘(7) Committed and responsible fathering during infancy and early childhood contributes to the development of emotional security, curiosity, and math and verbal skills.

‘‘(8) An estimated 24,000,000 children (33.5 percent) live apart from their biological father.

‘‘(9) A recent national survey indicates that of all children under age 18 not living with their biological father, 29 percent had not seen their father even once in the last 12 months.

‘‘(b) PURPOSES.—The purposes of this part are:

‘‘(1) To provide for projects and activities by public entities and by nonprofit community entities, including religious organizations, designed to test promising approaches to accomplishing the following objectives:

‘‘(A) Promoting responsible, caring, and effective parenting through counseling, mentoring, and parenting education, dissemination of educational materials and information on parenting skills, encouragement of positive father involvement, including the positive involvement of nonresident fathers, and other methods.

‘‘(B) Enhancing the abilities and commitment of unemployed or low-income fathers to provide material support for their families and to avoid or leave welfare programs by assisting them to take full advantage of education, job training, and job search programs, to improve work habits and work skills, to secure career advancement by activities such as outreach and information dissemination, coordination, as appropriate, with employment services and job training programs, including the One-Stop delivery system established under title I of the Workforce Investment Act of 1998, encouragement and support of regular and timely payment of child support in appropriate cases, and other methods.

‘‘(C) Improving fathers’ ability to effectively manage family business affairs by means such as education, counseling, and mentoring in matters including household management, budgeting, banking, and handling of financial transactions, time management, and home maintenance.

‘‘(D) Encouraging and supporting healthy marriages and married fatherhood through such activities as premarital education, including the use of premarital inventories, marriage preparation programs, skills-based marriage education programs, marital therapy, couples counseling, divorce education and reduction programs, divorce mediation and counseling, relationship skills enhancement programs, including those designed to reduce child abuse and domestic violence, and dissemination of information about the benefits of marriage for both parents and children.

‘‘(2) Through the projects and activities described in paragraph (1), to improve outcomes for children with respect to measures such as increased family income and economic security, improved school performance, better health, improved emotional and behavioral stability and social adjustment, and reduced risk of delinquency, crime, substance abuse, child abuse and neglect, teen sexual activity, and teen suicide.

‘‘(3) To evaluate the effectiveness of various approaches and to disseminate findings concerning outcomes and other information in order to encourage and facilitate the replication of effective approaches to accomplishing these objectives.

‘‘SEC. 442. DEFINITIONS.

‘‘In this part, the terms ‘Indian tribe’ and ‘tribal organization’ have the meanings given them in subsections

(e) and (l), respectively, of section 4 of the Indian Self-Determination and Education Assistance Act.

‘‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.

‘‘(a) IN GENERAL.—The Secretary may make grants for fiscal years 2003 through 2007 to public and nonprofit community entities, including religious organizations, and to Indian tribes and tribal organizations, for demonstration service projects and activities designed to test the effectiveness of various approaches to accomplish the objectives specified in section 441(b)(1).

‘‘(b) ELIGIBILITY CRITERIA FOR FULL SERVICE GRANTS.—In order to be eligible for a grant under this section, except as specified in subsection (c), an entity shall submit an application to the Secretary containing the following:

‘‘(1) PROJECT DESCRIPTION.—A statement including—

‘‘(A) a description of the project and how it will be carried out, including the geographical area to be covered and the number and characteristics of clients to be served, and how it will address each of the 4 objectives specified in section 441(b)(1); and

‘‘(B) a description of the methods to be used by the entity or its contractor to assess the extent to which the project was successful in accomplishing its specific objectives and the general objectives specified in section 441(b)(1).

‘‘(2) EXPERIENCE AND QUALIFICATIONS.—A demonstration of ability to carry out the project, by means such as demonstration of experience in successfully carrying out projects of similar design and scope, and such other information as the Secretary may find necessary to demonstrate the entity’s capacity to carry out the project, including the entity’s ability to provide the non-Federal share of project resources.

‘‘(3) ADDRESSING CHILD ABUSE AND NEGLECT AND DOMESTIC VIOLENCE.—A description of how the entity will assess for the presence of, and intervene to resolve, domestic violence and child abuse and neglect, including how the entity will coordinate with State and local child protective service and domestic violence programs.

‘‘(4) ADDRESSING CONCERNS RELATING TO SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A commitment to make available to each individual participating in the project education about alcohol, tobacco, and other drugs, and about the health risks associated with abusing such substances, and information about diseases and conditions transmitted through substance abuse and sexual contact, including HIV/AIDS, and to coordinate with providers of services addressing such problems, as appropriate.

‘‘(5) COORDINATION WITH SPECIFIED PROGRAMS.—An undertaking to coordinate, as appropriate, with State and local entities responsible for the programs under parts A, B, and D of this title, including programs under title I of the Workforce Investment Act of 1998 (including the One-Stop delivery system), and such other programs as the Secretary may require.

‘‘(6) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such reviews or audits as the Secretary may find necessary for purposes of oversight of project activities and expenditures.

‘‘(7) SELF-INITIATED EVALUATION.—If the entity elects to contract for independent evaluation of the project (part or all of the cost of which may be paid for using grant funds), a commitment to submit to the Secretary a copy of the evaluation report within 30 days after completion of the report and not more than 1 year after completion of the project.

‘‘(8) COOPERATION WITH SECRETARY’S OVER-SIGHT AND EVALUATION.—An agreement to cooperate with the Secretary’s evaluation of projects assisted under this section, by means including random assignment of clients to service recipient and control groups, if determined by the Secretary to be appropriate, and affording the Secretary access to the project and to project-related records and documents, staff, and clients.

‘‘(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE GRANTS.—In order to be eligible for a grant under this section in an amount under $25,000 per fiscal year, an entity shall submit an application to the Secretary containing the following:

‘‘(1) PROJECT DESCRIPTION.—A description of the project and how it will be carried out, including the number and characteristics of clients to be served, the proposed duration of the project, and how it will address at least 1 of the 4 objectives specified in section 441(b)(1).

‘‘(2) QUALIFICATIONS.—Such information as the Secretary may require as to the capacity of the entity to carry out the project, including any previous experience with similar activities.

‘‘(3) COORDINATION WITH RELATED PROGRAMS.—As required by the Secretary in appropriate cases, an undertaking to coordinate and cooperate with State and local entities responsible for specific programs relating to the objectives of the project including, as appropriate, jobs programs and programs serving children and families.

‘‘(4) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such reviews or audits as the Secretary may find necessary for purposes of oversight of project activities and expenditures.

‘‘(5) COOPERATION WITH SECRETARY’S OVERSIGHT AND EVALUATION.—An agreement to cooperate with the Secretary’s evaluation of projects assisted under this section, by means including affording the Secretary access to the project and to project-related records and documents, staff, and clients.

‘‘(d) CONSIDERATIONS IN AWARDING GRANTS.—

‘‘(1) DIVERSITY OF PROJECTS.—In awarding grants under this section, the Secretary shall seek to achieve a balance among entities of differing sizes, entities in differing geographic areas, entities in urban and in rural areas, and entities employing differing methods of achieving the purposes of this section.

‘‘(2) PREFERENCE FOR PROJECTS SERVING LOW-INCOME FATHERS.—In awarding grants under this section, the Secretary may give preference to applications for projects in which a majority of the clients to be served are low-income fathers.

‘‘(e) FEDERAL SHARE.—

‘‘(1) IN GENERAL.—Grants for a project under this section for a fiscal year shall be available for a share of the cost of such project in such fiscal year equal to—

‘‘(A) up to 80 percent (or up to 90 percent, if the entity demonstrates to the Secretary’s satisfaction circumstances limiting the entity’s ability to secure non-Federal resources) in the case of a project under subsection (b); and

‘‘(B) up to 100 percent, in the case of a project under subsection (c).

‘‘(2) NON-FEDERAL SHARE.—The non-Federal share may be in cash or in kind. In determining the amount of the non-Federal share, the Secretary may attribute fair market value to goods, services, and facilities contributed from non-Federal sources.

‘‘SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION PROJECTS.

‘‘(a) IN GENERAL.—The Secretary may make grants under this section for fiscal years 2003 through 2007 to eligible entities (as specified in subsection (b)) for 2 multicity, multistate projects demonstrating approaches to achieving the objectives specified in section 441(b)(1). One of the projects shall test the use of married couples to deliver program services.

‘‘(b) ELIGIBLE ENTITIES.—An entity eligible for a grant under this section must be a national nonprofit fatherhood promotion organization that meets the following requirements:

‘‘(1) EXPERIENCE WITH FATHERHOOD PROGRAMS.—The organization must have substantial experience in designing and successfully conducting programs that meet the purposes described in section 441.

‘‘(2) EXPERIENCE WITH MULTICITY, MULTISTATE PROGRAMS AND GOVERNMENT COORDINATION.—The organization must have experience in simultaneously conducting such programs in more than 1 major metropolitan area in more than 1 State and in coordinating such programs, where appropriate, with State and local government agencies and private, nonprofit agencies (including community-based and religious organizations), including State or local agencies responsible for child support enforcement and workforce development.

‘‘(c) APPLICATION REQUIREMENTS.—In order to be eligible for a grant under this section, an entity must submit to the Secretary an application that includes the following:

‘‘(1) QUALIFICATIONS.—

‘‘(A) ELIGIBLE ENTITY.—A demonstration that the entity meets the requirements of subsection (b).

‘‘(B) OTHER.—Such other information as the Secretary may find necessary to demonstrate the entity’s capacity to carry out the project, including the entity’s ability to provide the non-Federal share of project resources.

‘‘(2) PROJECT DESCRIPTION.—A description of and commitments concerning the project design, including the following:

‘‘(A) IN GENERAL.—A detailed description of the proposed project design and how it will be carried out, which shall—

‘‘(i) provide for the project to be conducted in at least 3 major metropolitan areas;

‘‘(ii) state how it will address each of the 4 objectives specified in section 441(b)(1);

‘‘(iii) demonstrate that there is a sufficient number of potential clients to allow for the random selection of individuals to participate in the project and for comparisons with appropriate control groups composed of individuals who have not participated in such projects; and

‘‘(iv) demonstrate that the project is designed to direct a majority of project resources to activities serving low-income fathers (but the project need not make services available on a means-tested basis).

‘‘(B) OVERSIGHT, EVALUATION, AND ADJUSTMENT COMPONENT.—An agreement that the entity—

‘‘(i) in consultation with the evaluator selected pursuant to section 445, and as required by the Secretary, will modify the project design, initially and (if necessary) subsequently throughout the duration of the project, in order to facilitate ongoing and final oversight and evaluation of project operation and outcomes (by means including, to the maximum extent feasible, random assignment of clients to service recipient and control groups), and to provide for mid-course adjustments in project design indicated by interim evaluations;

‘‘(ii) will submit to the Secretary revised descriptions of the project design as modified in accordance with clause (i); and

‘‘(iii) will cooperate fully with the Secretary’s ongoing oversight and ongoing and final evaluation of the project, by means including affording the Secretary access to the project and to project-related records and documents, staff, and clients.

‘‘(3) ADDRESSING CHILD ABUSE AND NEGLECT AND DOMESTIC VIOLENCE.—A description of how the entity will assess for the presence of, and intervene to resolve, domestic violence and child abuse and neglect, including how the entity will coordinate with State and local child protective service and domestic violence programs.

‘‘(4) ADDRESSING CONCERNS RELATING TO SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A commitment to make available to each individual participating in the project education about alcohol, tobacco, and other drugs, and about the health risks associated with abusing such substances, and information about diseases and conditions transmitted through substance abuse and sexual contact, including HIV/AIDS, and to coordinate with providers of services addressing such problems, as appropriate.

‘‘(5) COORDINATION WITH SPECIFIED PROGRAMS.—An undertaking to coordinate, as appropriate, with State and local entities responsible for the programs funded under parts A, B, and D of this title, programs under title I of the Workforce Investment Act of 1998 (including the One-Stop delivery system), and such other programs as the Secretary may require.

‘‘(6) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such reviews or audits (in addition to those required under the preceding provisions of paragraph (2)) as the Secretary may find necessary for purposes of oversight of project activities and expenditures.

‘‘(d) FEDERAL SHARE.—

‘‘(1) IN GENERAL.—Grants for a project under this section for a fiscal year shall be available for up to 80 percent of the cost of such project in such fiscal year.

‘‘(2) NON-FEDERAL SHARE.—The non-Federal share may be in cash or in kind. In determining the amount of the non-Federal share, the Secretary may attribute fair market value to goods, services, and facilities contributed from non-Federal sources.

‘‘SEC. 445. EVALUATION.

‘‘(a) IN GENERAL.—The Secretary, directly or by contract or cooperative agreement, shall evaluate the effectiveness of service projects funded under sections 443 and 444 from the standpoint of the purposes specified in section 441(b)(1).

‘‘(b) EVALUATION METHODOLOGY.—Evaluations under this section shall—

‘‘(1) include, to the maximum extent feasible, random assignment of clients to service delivery and control groups and other appropriate comparisons of groups of individuals receiving and not receiving services;

‘‘(2) describe and measure the effectiveness of the projects in achieving their specific project goals; and

‘‘(3) describe and assess, as appropriate, the impact of such projects on marriage, parenting, domestic violence, child abuse and neglect, money management, employment and earnings, payment of child support, and child well-being, health, and education.

‘‘(c) EVALUATION REPORTS.—The Secretary shall publish the following reports on the results of the evaluation:

‘‘(1) An implementation evaluation report covering the first 24 months of the activities under this part to be completed by 36 months after initiation of such activities.

‘‘(2) A final report on the evaluation to be completed by September 30, 2010.

‘‘SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.

‘‘The Secretary is authorized, by grant, contract, or cooperative agreement, to carry out projects and activities of national significance relating to fatherhood promotion, including—

‘‘(1) COLLECTION AND DISSEMINATION OF INFORMATION.—Assisting States, communities, and private entities, including religious organizations, in efforts to promote and support marriage and responsible fatherhood by collecting, evaluating, developing, and making available (through the Internet and by other means) to all interested parties information regarding approaches to accomplishing the objectives specified in section 441(b)(1).

‘‘(2) MEDIA CAMPAIGN.—Developing, promoting, and distributing to interested States, local governments, public agencies, and private nonprofit organizations, including charitable and religious organizations, a media campaign that promotes and encourages involved, committed, and responsible fatherhood and married fatherhood.

‘‘(3) TECHNICAL ASSISTANCE.—Providing technical assistance, including consultation and training, to public and private entities, including community organizations and faith-based organizations, in the implementation of local fatherhood promotion programs.

‘‘(4) RESEARCH.—Conducting research related to the purposes of this part.

‘‘SEC. 447. NONDISCRIMINATION.

‘‘The projects and activities assisted under this part shall be available on the same basis to all fathers and expectant fathers able to benefit from such projects and activities, including married and unmarried fathers and custodial and noncustodial fathers, with particular attention to low-income fathers, and to mothers and expectant mothers on the same basis as to fathers.

‘‘SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVATION FOR CERTAIN PURPOSE.

‘‘(a) AUTHORIZATION.—There are authorized to be appropriated $20,000,000 for each of fiscal years 2003 through 2007 to carry out the provisions of this part.

‘‘(b) RESERVATION.—Of the amount appropriated under this section for each fiscal year, not more than 15 percent shall be available for the costs of the multicity, multistate demonstration projects under section 444, evaluations under section 445, and projects of national significance under section 446.’’.

Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is amended by striking ‘‘2002’’ and inserting ‘‘2007’’.

Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is amended by striking ‘‘not more than 10’’.

Section 1130 (42 U.S.C. 1320a–9) is amended by adding at the end the following:

Section 1130 (42 U.S.C. 1320a–9) is further amended by adding at the end the following:

Section 1130 (42 U.S.C. 1320a–9) is further amended by adding at the end the following:

Section 1130 (42 U.S.C. 1320a–9) is further amended by adding at the end the following:

Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is amended by striking ‘‘422(b)(9)’’ and inserting ‘‘422(b)(10)’’.

Section 1633 (42 U.S.C. 1383b) is amended by adding at the end the following:

‘‘(e)

(1) The Commissioner of Social Security shall review determinations, made by State agencies pursuant to subsection (a) in connection with applications for benefits under this title on the basis of blindness or disability, that individuals who have attained 18 years of age are blind or disabled as of a specified onset date. The Commissioner of Social Security shall review such a determination before any action is taken to implement the determination.

‘‘(2)

(A) In carrying out paragraph (1), the Commissioner of Social Security shall review—

‘‘(i) at least 15 percent of all determinations referred to in paragraph (1) that are made in fiscal year 2003;

‘‘(ii) at least 30 percent of all such determinations that are made in fiscal year 2004; and

‘‘(iii) at least 50 percent of all such determinations that are made in fiscal year 2005 or thereafter.

‘‘(B) In carrying out subparagraph (A), the Commissioner of Social Security shall, to the extent feasible, select for review the determinations which the Commissioner of Social Security identifies as being the most likely to be incorrect.’’.

TITLE VI—BROADENED WAIVER AUTHORITY

SEC. 601. STATE PROGRAM DEMONSTRATION PROJECTS.

(a) PURPOSE.—The purpose of this section is to enable States to conduct demonstration projects involving individual programs, or integrating multiple public assistance, employment security, and other programs, for the purpose of supporting working families, helping families escape welfare dependency, or helping parents build stronger families, using innovative approaches to strengthen service systems and provide more coordinated and effective service delivery.

(b) DEFINITIONS.—In this section:

(1) ADMINISTERING SECRETARY.—The term ‘‘administering Secretary’’ means, with respect to a program administered by a qualified agency, the head of the agency.

(2) QUALIFIED AGENCY.—The term ‘‘qualified agency’’ means—

(A) the Department of Health and Human Services; or

(B) the Department of Labor.

(c) APPLICATION REQUIREMENTS.—A State desiring to conduct a demonstration project under this section involving 1 or more programs administered by 1 or more qualified agencies shall submit to the administering Secretary of each such program an application that contains the following:

(1) PROGRAMS INCLUDED.—A statement identifying each program to be included in the project, and describing how the purposes of each such program will be achieved by the project.

(2) POPULATION SERVED.—A statement identifying the population to be served by the project and specifying the eligibility criteria to be used.

(3) DESCRIPTION AND JUSTIFICATION.—A detailed description of the proposed project, including—

(A) a description of how the project is expected to improve or enhance achievement of the purposes of the program or programs involved, from the standpoint of quality, of costeffectiveness, or of both; and

(B) a description of the performance objectives for the project, including any proposed modifications to the performance measures and reporting requirements used in the program or programs involved.

(4) WAIVERS REQUESTED.—A description of the waivers requested of statutory and regulatory requirements under the program or programs involved, and a justification of the need for each waiver.

(5) COST NEUTRALITY.—Such information and assurances as necessary to establish to the satisfaction of each concerned administering Secretary that the proposed project is reasonably expected to meet the requirements of subsection (d)(3).

(6) EVALUATION AND REPORTS.—An assurance that the State will conduct ongoing and final evaluations of the project, and make interim and final re- ports to each concerned administering Secretary, at such times and in such manner as each such Secretary may require.

(7) OTHER INFORMATION AND ASSURANCES.— Such other information and assurances as each concerned administering Secretary may require.

(d) APPROVAL OF STATE APPLICATIONS.—

(A) has a reasonable likelihood of achieving the objectives of the program or programs involved; and

(B) may reasonably be expected to meet the cost neutrality requirements of paragraph (3).

(2) AGREEMENT OF EACH ADMINISTERING SECRETARY REQUIRED FOR PROPOSALS INVOLVING MORE THAN 1 QUALIFIED AGENCY.—

(A) IN GENERAL.—A State may not conduct a demonstration project under this section unless each administering Secretary with respect to any program proposed to be included in the project has approved the application to conduct the project.

(B) AGREEMENT WITH RESPECT TO FUNDING AND IMPLEMENTATION.—Before approving a State proposal under this section, each administering Secretary shall have in place an agreement with respect to the payment of funds and responsibilities required of the Secretary with respect to the project.

(C) 90-DAY APPROVAL DEADLINE.—An application to conduct a demonstration project under this section is considered approved for purposes of this section unless, within 90 days after an administering Secretary with respect to a program proposed to be included in the project has received the application, the administering Secretary, in writing, notifies the State that submitted the application that the application is disapproved (and the reasons for disapproval) or that specified additional information is needed.

(3) COST-NEUTRALITY REQUIREMENTS.—

(A) LIMIT ON TOTAL COSTS.—An application to conduct a demonstration project under this section shall not be approved unless it can reasonably be expected that, for each fiscal year in which the project is in effect, the total costs of the project will not exceed the estimated combined total Federal cost for the fiscal year of the program or programs included in the project if the program or programs had not been included in the project.

(B) LIMIT ON FEDERAL PAYMENTS.—The total amount of payments that may be made to a State for a fiscal year with respect to a demonstration project conducted under this section that includes 1 or more programs in the jurisdiction of an administering Secretary shall not exceed the estimated amount of the payments that the Secretary would have made to the State with respect to the program or programs if not included in the project.

(4) PROGRAM EXCLUDED.—Notwithstanding any other provision of this section, the program of grants to States for medical assistance under title XIX of the Social Security Act may not be included in a demonstration project under this section.

(e) DURATION OF PROJECTS.—A demonstration project under this section may be approved for a term of not more than 5 years, and may be renewed for 1 or more additional terms of not more than 5 years.

(f) REPORTS TO CONGRESS.—Each administering Secretary shall provide annually to the Congress a report concerning demonstration projects approved under this section, including—

(1) the projects approved for each participating State;

(2) the number of waivers granted under this section, and the specific statutory provisions waived; and

(3) recommendations for modification of programs based on outcomes of the projects.