To amend part A of title IV of the Social Security Act to reauthorize and improve the operation of temporary assistance to needy families programs operated by Indian tribes, and for other purposes.

July 17, 2003

Mr. PALLONE introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Resources, Transportation and Infrastructure, Education and the Workforce, Agriculture, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To amend part A of title IV of the Social Security Act to reauthorize and improve the operation of temporary assistance to needy families programs operated by Indian tribes, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `American Indian Welfare Reform Act'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Funding for tribal TANF programs.

Sec. 4. Economic development.

Sec. 5. Tribal job training programs.

Sec. 6. Child care and development block grant funds for Indian tribes.

Sec. 7. Equitable access.

Sec. 8. Areas of Indian country or Alaskan Native villages of high joblessness.

Sec. 9. Parity in treatment of Alaskan Natives.

Sec. 10. Authority of Indian tribes to receive Federal funds for foster care and adoption assistance.

Sec. 11. Demonstration program to allow Indian tribes to determine eligibility for the food stamp, medicaid, and State children's health insurance programs.

Sec. 12. Tribal child support enforcement programs.

Sec. 13. Break the cycle demonstration grants.

Sec. 14. Reservation of funds under the Social Services Block Grant.

Sec. 15. Research on tribal welfare programs and poverty among Indians.

Sec. 16. Effective date.

SEC. 2. FINDINGS.

Congress makes the following findings:

(1) The Federal Government bears a unique trust responsibility for American Indians.

(2) Despite this responsibility, Indians remain remarkably impoverished. According to the Bureau of the Census, 25.9 percent of American Indians live in poverty, more than twice the national poverty rate. The average household income for Indians in 2000 was only 75 percent of that of the rest of Americans.

(3) In some States with substantial Indian populations, the percentage of the welfare caseload that is made up of Indians has increased since the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 because some Indians face substantial barriers in moving from welfare to work.

(4) A General Accounting Office review of data from the Bureau of the Census found that 25 of the 26 counties in the United States with a majority of American Indians had poverty rates `significantly' higher than average.

(5) Many Indian tribes are located in isolated rural areas that lack sufficient economic opportunities, including jobs and economic development, transportation services, child care, and other services necessary to ensure a successful transition from welfare to work.

(6) Tribal temporary assistance to needy families programs have demonstrated remarkable success in moving Indians from welfare to work.

(7) Tribal governments, unlike State governments, have not been afforded an opportunity to administer and fully participate in the Federal entitlement program for foster care and adoption assistance, a program Congress recognizes as an important component of welfare services.

(8) Welfare reform has not brought enough change to Indian Country. Welfare reform has not, and will not, succeed unless it adequately addresses the unique barriers many Indians face in moving from welfare to work.

SEC. 3. FUNDING FOR TRIBAL TANF PROGRAMS.

(a) REAUTHORIZATION OF TRIBAL FAMILY ASSISTANCE GRANTS- Section 412(a)(1)(A) of the Social Security Act (42 U.S.C. 612(a)(1)(A)) is amended by striking `1997' and all that follows through `2002' and inserting `2004 through 2008'.

(b) TRIBAL TANF IMPROVEMENT FUND-

(1) IN GENERAL- Section 412(a) of the Social Security Act (42 U.S.C. 612(a)) is amended by striking paragraph (2) and inserting the following:

`(2) TRIBAL TANF IMPROVEMENT GRANTS-

`(A) TRIBAL CAPACITY GRANTS-

`(i) IN GENERAL- Of the amount appropriated under subparagraph (E) for the period of fiscal years 2004 through 2008, $185,000,000 of such amount shall be used by the Secretary to award grants for tribal human services program infrastructure improvement (as defined in clause (v)) to--

`(I) Indian tribes that have applied for approval of a tribal family assistance plan and that meet the requirements of clause (ii)(I);

`(II) Indian tribes with an approved tribal family assistance plan and that meet the requirements of clause (ii)(II);

`(III) Indian tribes that have applied for approval of a foster care and adoption assistance program under section 479B or that plan to enter into, or have in place, a tribal-State cooperative agreement under section 479B(c) and that meet the requirements of clause (ii)(III); and

`(IV) Indian tribes that are conducting a tribal employment services program under a grant made under paragraph (4) and that meet the requirements of clause (ii)(IV).

`(ii) PRIORITIES FOR AWARDING OF GRANTS- The Secretary shall give priority in awarding grants under this subparagraph as follows:

`(I) First, for grants to Indian tribes that have applied for approval of a tribal family assistance plan, that have not operated such a plan as of the date of enactment of the American Indian Welfare Reform Act, that will have such plan approved, and that include in the plan submission provisions for tribal human services program infrastructure improvement and related management information systems training.

`(II) Second, for Indian tribes with an approved tribal family assistance plan that are not described in subclause (I) and that submit an addendum to such plan that includes provisions for tribal human services program infrastructure improvement that includes implementing or improving management information systems of the tribe (including management information systems training), as such systems relate to the operation of the tribal family assistance plan.

`(III) Third, for Indian tribes that have applied for approval of a foster care and adoption assistance program under section 479B or that plan to enter into, or have in place, a tribal-State cooperative agreement under section 479B(c) and that include in the plan submission under section 471 (or in an addendum to such plan) provisions for tribal human services program infrastructure improvement and related management information systems training.

`(IV) Fourth, for Indian tribes that are conducting a tribal employment services program under a grant made under paragraph (4) and that provide the Secretary with a plan for tribal human services program infrastructure improvement and related management information systems training.

`(iii) OTHER REQUIREMENTS FOR AWARDING GRANTS- In awarding grants under this subparagraph, the Secretary--

`(I) may not award an Indian tribe more than 1 grant under this subparagraph per fiscal year;

`(II) shall award grants in such a manner as to maximize the number of Indian tribes that receive grants under this subparagraph; and

`(III) shall consult with Indian tribes located throughout the United States.

`(iv) APPLICATION- An Indian tribe desiring a grant under this subparagraph shall submit an application to the Secretary, at such time, in such manner, and containing such information as the Secretary may require.

`(v) DEFINITION OF HUMAN SERVICES PROGRAM INFRASTRUCTURE IMPROVEMENT- In this subparagraph, the term `human services program infrastructure improvement' includes (but is not limited to) improvement of management information systems, management information systems-related training, management training, equipping offices, and renovating, but not constructing, buildings, as described in an application for a grant under this subparagraph, and subject to approval by the Secretary.

`(B) ADJUSTED TRIBAL TANF GRANTS-

`(i) IN GENERAL- Of the amount appropriated under subparagraph (E) for the period of fiscal years 2005 through 2008, $140,000,000 of such amount shall be used by the Secretary to make supplemental grants for each of fiscal years 2005 through 2008 to each Indian tribe that--

`(I) has an approved tribal family assistance plan; and

`(II) demonstrates that the number of Indian families receiving cash assistance under the tribal family assistance plan as of the first quarter of the third year of the operation of such plan has increased by at least 20 percent over such number for the first quarter of the first year of the operation of such plan.

`(ii) ALLOCATION OF FUNDS- The Secretary, in consultation with Indian tribes with approved tribal family assistance plans, shall determine a formula for the allocation of $35,000,000 of the funds described in clause (i) for each fiscal year described in that clause in a manner that is proportionate to the size, service population, and percentage increase in the number of Indian families served by each Indian tribe eligible for an adjusted grant under this subparagraph for that fiscal year. If the amount available for allocation for a fiscal year is less than the total amount of funds requested for allocation among the Indian tribes for that fiscal year, the Secretary shall allocate the funds among such tribes on a pro rata basis.

`(C) INCENTIVE GRANTS TO STATES THAT PROVIDE MAINTENANCE OF EFFORT SUPPORT TO INDIAN TRIBES-

`(i) IN GENERAL- Subject to clause (ii), of the amount appropriated under subparagraph (E), $40,000,000 of such amount for each of fiscal years 2005 through 2008 shall be used by the Secretary to pay a State an amount equal to 50 percent of the total amount of qualified State expenditures (as defined in section 409(a)(7)(B)(i)) incurred by the State for each such fiscal year for support of tribal family assistance plans.

`(ii) PRO RATA REDUCTIONS- If the amount available for making payments under clause (i) for a fiscal year is less than the total amount of payments otherwise required to be made under clause (i) for the fiscal year, then the amount otherwise payable to any State for the fiscal year under clause (i) shall be reduced by a percentage equal to the amount available divided by the total amount of payments required for that fiscal year.

`(D) TECHNICAL ASSISTANCE-

`(i) IN GENERAL- Of the amount appropriated under subparagraph (E) for the period of fiscal years 2004 through 2008, $15,000,000 shall be used by the Secretary to provide technical assistance to Indian tribes--

`(I) considering applying for or carrying out a grant made under this paragraph;

`(II) considering applying for or carrying out a tribal family assistance plan under this section; or

`(III) related to best practices and approaches for State and tribal coordination on the transfer of the administration of social services programs to Indian tribes.

`(ii) RESERVATION OF FUNDS- Not less than--

`(I) $5,000,000 of the amount described in clause (i) shall be used by the Secretary to support through grants or contracts peer-learning programs among tribal administrators; and

`(II) $5,000,000 of such amount shall be used by the Secretary for making grants to Indian tribes to conduct feasibility studies of the capacity of Indian tribes to operate tribal family assistance plans under this part.

`(E) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $500,000,000 for the period of fiscal years 2004 through 2008 to carry out this paragraph. Amounts appropriated under this subparagraph shall remain available until expended.'.

(2) CONFORMING AMENDMENT- Section 405(a) of the Social Security Act (42 U.S.C. 605(a)) is amended by striking `section 403' and inserting `sections 403 and 412(a)(2)(C)'.

(c) ELIGIBILITY FOR HIGH PERFORMANCE BONUS AND CONTINGENCY FUND-

(1) BONUS TO REWARD HIGH PERFORMANCE-

(A) REAUTHORIZATION OF BONUS- Section 403(a)(4) of the Social Security Act (42 U.S.C. 603(a)(4)) is amended--

(i) in subparagraph (E)(i), by striking `1999' and all that follows through `2003' and inserting `2005, 2006, 2007, 2008, and 2009'; and

(ii) in subparagraph (F) by striking `1999 through 2003' and inserting `2005 through 2009'.

(B) RESERVATION FOR DISTRIBUTION TO INDIAN TRIBES- Section 403(a)(4) of the Social Security Act (42 U.S.C. 603(a)(4)) is amended--

(i) in subparagraph (A), by striking `The' and inserting `Subject to subparagraph (G), the'; and

(ii) by adding at the end the following:

`(G) RESERVATION OF FUNDS FOR DISTRIBUTION TO INDIAN TRIBES-

`(i) IN GENERAL- Of the amount available for grants under this paragraph for a bonus year, the Secretary shall reserve an amount equal to 3 percent of such amount to make grants pursuant to this subparagraph to each Indian tribe with an approved tribal family assistance plan that is a high performing Indian tribe for that bonus year.

`(ii) CRITERIA FOR DETERMINING TRIBAL PERFORMANCE-

`(I) IN GENERAL- Subject to subclause (II), the Secretary, in consultation with Indian tribes with approved tribal family assistance plans located throughout the United States, shall determine the criteria for determining which such tribes are high performing Indian tribes with respect to a bonus year.

`(II) INCLUSION OF CERTAIN FACTORS- Such criteria shall include factors related to the employment of recipients of assistance under a tribal family assistance plan and to moving such recipients to self-sufficiency.'.

(2) ELIGIBILITY FOR CONTINGENCY FUND-

(A) REAUTHORIZATION OF CONTINGENCY FUND- Section 403(b) of the Social Security Act (42 U.S.C. 603(b)), as amended by section 617 of the Job Creation and Worker Assistance Act of 2002 (Public Law 107-147), is amended--

(i) in paragraph (2), by striking `fiscal years 1997, 1998, 1999, 2000, 2001, and 2002' and inserting `the period of fiscal years 2004 through 2008'; and

(ii) in paragraph (3)(C)(ii), by striking `1997 through 2002' and inserting `2004 through 2008'.

(B) RESERVATION OF FUNDS FOR TRIBAL PROGRAMS- Section 403(b)(3) of the Social Security Act (42 U.S.C. 603(b)(3)) is amended by adding at the end the following:

`(D) PAYMENTS TO INDIAN TRIBES-

`(i) IN GENERAL- Of the total amount appropriated pursuant to paragraph (2), $50,000,000 of such amount shall be reserved for making payments to Indian tribes with approved tribal family assistance plans that are operating in situations of increased economic hardship.

`(ii) DETERMINATION OF CRITERIA FOR TRIBAL ACCESS-

`(I) IN GENERAL- Subject to subclause (II), the Secretary, in consultation with Indian tribes with approved tribal family assistance plans, shall determine the criteria for access by Indian tribes to the amount reserved under clause (i).

`(II) INCLUSION OF CERTAIN FACTORS- Such criteria shall include factors related to increases in unemployment, loss of employers, and loss of qualified State expenditures (as defined in section 409(a)(7)(B)(i)) in support of tribal family assistance plans.

`(iii) APPLICATION OF REQUIREMENTS FOR PAYMENTS TO STATES- The Secretary, in consultation with Indian tribes with approved tribal family assistance plans located throughout the United States, shall determine the extent to which requirements of States for payments from the Fund shall apply to Indian tribes receiving payments under this subparagraph.'.

(3) CLARIFICATION OF AUTHORITY OF STATES AND INDIAN TRIBES TO USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS AND SERVICES- Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended--

(A) in the subsection heading, by striking `Assistance' and inserting `Benefits or Services'; and

(B) by striking `assistance' and inserting `any benefit or service that may be provided'.

SEC. 4. ECONOMIC DEVELOPMENT.

(a) TEMPORARY EXPANSION OF AUTHORITY FOR INDIAN TRIBES TO ISSUE TAX-EXEMPT PRIVATE ACTIVITY BONDS-

(1) IN GENERAL- Section 7871(c) of the Internal Revenue Code of 1986 (relating to additional requirements for tax-exempt bonds) is amended by adding at the end the following new paragraph:

`(4) EXCEPTION FOR QUALIFIED INDIAN PRIVATE ACTIVITY BONDS-

`(A) IN GENERAL- In the case of any qualified Indian private activity bond--

`(i) paragraph (2) shall not apply,

`(ii) such bond shall be treated as a qualified bond under section 141(e), and

`(iii) section 146 shall not apply.

`(B) QUALIFIED INDIAN PRIVATE ACTIVITY BOND- For purposes of this paragraph, the term `qualified Indian private activity bond' means any bond which--

`(i) is issued by a qualified Indian tribal government--

`(I) as part of an issue 95 percent or more of the net proceeds of which are to be used to provide qualified residential rental projects (as defined in section 142(d), except that for purposes of such section, statewide median gross income shall be used to determine tenant income),

`(II) as part of a qualified mortgage issue (as defined in section 143(a)(2)),

`(III) as part of an issue 95 percent or more of the net proceeds of which are to be used to provide any facility described in section 1394(b)(1) for any business that would qualify as an enterprise zone business if the Indian reservation (as defined in section 168(j)(6)) over which the qualified Indian tribal government exercises general governmental authority were treated as an empowerment zone, or

`(IV) as part of an issue to be used for more than 1 of the purposes described in the preceding subclauses, and

`(ii) meets the requirements of subparagraphs (D) and (E).

`(C) QUALIFIED INDIAN TRIBAL GOVERNMENT- For purposes of this paragraph, the term `qualified Indian tribal government' means an Indian tribal government which exercises general governmental authority over an Indian reservation (as so defined) with a joblessness rate among members of the tribe of at least 20 percent for the most recent calendar year preceding the issuance of a bond under this section (as determined under the report for such year published by the Bureau of Indian Affairs under section 17(a) of the Indian Employment, Training and Related Services Demonstration Act of 1992 (25 U.S.C. 3416(a))).

`(D) DESIGNATION REQUIREMENTS- A bond meets the requirements of this subparagraph if it is issued as part of an issue designated as a qualified Indian private activity bond for a purpose described in subclause (I), (II), or (III) of subparagraph (B)(i) by the qualified Indian tribal government.

`(E) VOLUME REQUIREMENTS- A bond issued as part of an issue meets the requirements of this subparagraph if such bond is issued after December 31, 2003, and before January 1, 2009, and the aggregate face amount of the bonds issued pursuant to such issue, when added to the aggregate face amount of qualified Indian private activity bonds previously issued by such qualified Indian tribal government, does not exceed $10,000,000 (excluding bonds issued under paragraph (3)).

`(F) APPLICATION OF SECTION 42 TO RESIDENTIAL RENTAL PROJECTS FINANCED BY BONDS UNDER THIS PARAGRAPH- In the case of bonds described in subparagraph (B)(i)(I), issuance under the requirements of subparagraph (E) shall be treated as issuance under the requirements of section 146 for purposes of determining the application of section 42 to projects financed by the net proceeds of such bonds.

`(G) SPECIAL RULE FOR DETERMINING ENTERPRISE ZONE BUSINESS- For purposes of subparagraph (B)(i)(III), an enterprise zone business shall not include any facility a principal business of which is the sale of tobacco products or highway motor fuels.

`(H) BOND INTEREST NOT AN AMT PREFERENCE ITEM- For purposes of section 57(a)(5), a bond designated under subparagraph (D) as a qualified Indian private activity bond shall not be treated as a specified private activity bond.

`(I) REPORT- The Secretary shall compile necessary data from reports relating to the issuance of bonds under this paragraph and shall report to Congress not later than September 30 of any year following the calendar year in which Indian tribal governments issued bonds under this paragraph and the activities for which such bonds were issued.'.

(2) CONFORMING AMENDMENTS-

(A) Section 7871(c)(2) of the Internal Revenue Code of 1986 is amended by striking `paragraph (3)' and inserting `paragraphs (3) and (4)'.

(B) Section 7871 of such Code is amended--

(i) by striking clause (iii) of subsection (c)(3)(E), and

(ii) by adding at the end the following new subsection:

`(f) NET PROCEEDS- For purposes of this section, the term `net proceeds' has the meaning given such term by section 150(a)(3).'.

(3) EFFECTIVE DATE- The amendments made by this subsection shall apply to bonds issued after December 31, 2003.

(b) TRIBAL DEVELOPMENT GRANTS-

(1) AUTHORITY TO AWARD GRANTS-

(A) IN GENERAL- The Secretary of Health and Human Services (in this subsection referred to as the `Secretary'), through the Commissioner of the Administration for Native Americans, shall award grants to Indian tribes, tribal organizations, and nonprofit organizations to enable such tribes and organizations to provide technical assistance to Indian tribes and tribal organizations in any or all of the following areas:

(i) The development and improvement of uniform commercial codes.

(ii) The creation or expansion of small business or micro-enterprise programs.

(iii) The development and improvement of tort liability codes.

(iv) The creation or expansion of tribal marketing efforts.

(v) The creation or expansion of for-profit collaborative business networks.

(vi) The development of innovative uses of telecommunications to assist with distance learning or telecommuting.

(B) REQUIREMENTS- In awarding grants under this subsection the Secretary shall--

(i) give priority to awarding grants to Indian tribes; and

(ii) consult with other Federal agencies with expertise in the areas described in subparagraph (A).

(C) APPLICATION- An Indian tribe, tribal organization, or nonprofit organization desiring a grant under this subsection shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

(2) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $50,000,000 for the period of fiscal years 2004 through 2008 to make the grants authorized under this subsection.

(c) JOB ACCESS AND REVERSE COMMUTE GRANTS- Section 3037 of the Transportation Equity Act for the 21st Century (49 U.S.C. 5309 note) is amended--

(1) in subsection (b)--

(A) in paragraph (4)--

(i) in subparagraph (A), by striking `and' at the end;

(ii) in subparagraph (B), by striking the period and inserting `; and'; and

(iii) by adding at the end the following:

`(C) an Indian tribe or a tribal organization (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).'; and

(B) in paragraph (5), by inserting `or tribal' after `State';

(2) in subsection (c), by adding at the end the following:

`(3) GRANTS TO INDIAN TRIBES AND TRIBAL ORGANIZATIONS- The Secretary--

`(A) may modify the requirements applicable to grants made under this section in the case of a grant made to a qualified entity described in subsection (b)(4)(C); and

`(B) shall, with respect to the nongovernmental share of the total cost of an eligible project, permit such share to be derived from Federal funds (other than funds provided under this section) or in-kind resources, fairly valued, including facilities, equipment, or services.';

(3) in subsection (f), by striking `In awarding' and inserting `Subject to subsection (c)(3), in awarding'; and

(4) in subsection (l)--

(A) in the matter preceding subparagraph (A) of paragraph (3), by inserting `(after the application of paragraph (4))' after `fiscal year'; and

(B) by adding at the end the following:

`(4) SET-ASIDE FOR GRANTS TO INDIAN TRIBES AND TRIBAL ORGANIZATIONS- Of the amounts made available by or appropriated under paragraph (1) to carry out this section for a fiscal year, not less than 3 percent of such amounts shall be used to make grants to qualified entities described in subsection (b)(4)(C).'.

(d) GRANTS TO IMPROVE ACCESS TO TRANSPORTATION- Section 412(a) of the Social Security Act (42 U.S.C. 612(a)), as amended by section 5(a), is amended by adding at the end the following:

`(5) GRANTS TO IMPROVE ACCESS TO TRANSPORTATION-

`(A) PURPOSES- The purposes of this paragraph are to--

`(i) assist Indian families with children obtain dependable, affordable automobiles to improve their employment opportunities and access to training; and

`(ii) provide incentives to Indian tribes, tribal organizations, States, local governments, and nonprofit entities to develop and administer programs that provide assistance with automobile ownership for Indian families with children.

`(B) DEFINITIONS- In this paragraph:

`(i) LOCALITY- The term `locality' means a municipality that does not administer a State program funded under this part.

`(ii) INDIAN FAMILY WITH CHILDREN- The term `Indian family with children' means a household that is eligible for benefits or services funded under a tribal family assistance plan, the State program funded under this part, or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)).

`(iii) NONPROFIT ENTITY- The term `nonprofit entity' means a school, local agency, organization, or institution owned and operated by 1 or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

`(C) AUTHORITY TO AWARD GRANTS-

`(i) IN GENERAL- The Secretary may award grants to Indian tribes, tribal organizations, States, counties, localities, and nonprofit entities to promote improving access to dependable, affordable automobiles by Indian families with children.

`(ii) REQUIREMENTS-

`(I) PRIORITY FOR INDIAN TRIBES- In awarding grants under this paragraph, the Secretary shall give priority to awarding grants to Indian tribes.

`(II) CONSULTATION- The Secretary shall consult with Indian tribes regarding the establishment of criteria for giving priority to Indian tribes under subclause (I) and the grant approval criteria under subparagraph (D).

`(D) GRANT APPROVAL CRITERIA- The Secretary shall establish criteria for approval of an application for a grant under this paragraph that include consideration of--

`(i) the extent to which the proposal, if funded, is likely to improve access to training and employment opportunities and child care services by Indian families with children by means of car ownership;

`(ii) the level of innovation in the applicant's grant proposal; and

`(iii) any partnerships between the public and private sector in the applicant's grant proposal.

`(E) USE OF FUNDS-

`(i) IN GENERAL- A grant awarded under this paragraph shall be used to administer programs that assist Indian families with children with dependable automobile ownership, and maintenance of, or insurance for, the purchased automobile.

`(ii) SUPPLEMENT NOT SUPPLANT- Funds provided to an Indian tribe, tribal organization, State, county, locality, or nonprofit entity under a grant awarded under this paragraph shall be used to supplement and not supplant other tribal, State, county, or local public funds expended for car ownership programs.

`(F) APPLICATION- Each applicant desiring a grant under this paragraph shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

`(G) REVERSION OF FUNDS- Any funds not expended by a grantee within 3 years after the date the grant is awarded under this paragraph shall be available for redistribution among other grantees in such manner and amount as the Secretary may determine, unless the Secretary extends by regulation the time period to expend such funds.

`(H) LIMITATION ON ADMINISTRATIVE COSTS OF THE SECRETARY- Not more than an amount equal to 5 percent of the funds appropriated to make grants under this paragraph for a fiscal year shall be expended for administrative costs of the Secretary in carrying out this paragraph.

`(I) EVALUATION- The Secretary shall, by grant, contract, or interagency agreement, conduct an evaluation of the programs administered with grants awarded under this paragraph.

`(J) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Secretary to make grants under this paragraph, $10,000,000 for each of fiscal years 2004 through 2008.'.

SEC. 5. TRIBAL JOB TRAINING PROGRAMS.

(a) TRIBAL EMPLOYMENT SERVICES PROGRAMS-

(1) IN GENERAL- Section 412(a) of the Social Security Act (42 U.S.C. 612(a)), as amended by section 3, is amended by adding at the end the following:

`(4) GRANTS FOR TRIBAL EMPLOYMENT SERVICES PROGRAMS-

`(A) PURPOSE- The purpose of this paragraph is to support comprehensive services to enable Indian and Alaska Native individuals to support themselves through employment without requiring cash benefits from public assistance programs for themselves or their families.

`(B) STATEMENT OF POLICY- The programs funded under grants made under this paragraph shall be administered in a manner consistent with the principles of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) and the government-to-government relationship between the Federal Government and Indian tribal governments.

`(C) DEFINITIONS- In this paragraph:

`(i) ALASKA NATIVE ORGANIZATION- The term `Alaska Native organization' means an Indian tribe or tribal organization in Alaska or an Alaska Native-controlled entity serving Alaska Natives at the Regional level (as Regions are defined for purposes of the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)).

`(ii) DEPARTMENT- Unless otherwise specified, the term `Department' means the Department of Labor.

`(iii) ELIGIBLE BENEFICIARY- The term `eligible beneficiary' means--

`(I) an individual who is an Indian or Alaska Native receiving or eligible to receive cash benefits for the individual or the individual's family under the State program funded under this part, a tribal family assistance program under this section, or the General Assistance program;

`(II) an individual who is an Indian or Alaska Native transitioning from receipt of cash benefits under any such programs to employment;

`(III) an individual who is an Indian or Alaska Native with a history of long-term dependence (as defined in clause (vi)) on cash benefits under any such programs or under the aid for families with dependent children program under this part (as in effect before August 22, 1996);

`(IV) an individual who is an Indian or Alaska Native who is a non-custodial parent of a minor child receiving, eligible to receive, or with a history of receiving cash benefits under any such programs, or an individual who has an obligation to provide support for such children; or

`(V) an individual who is an Indian or Alaska Native and is a member of a family who is at risk of becoming dependent on cash benefits under any such programs or who has exhausted eligibility for such benefits because of the application of time limits on benefits.

`(iv) GENERAL ASSISTANCE- The term `General Assistance' means the General Assistance program supported through the Bureau of Indian Affairs in the Department of the Interior.

`(v) LONG-TERM DEPENDENCE- The term `long-term dependence' means receipt of cash benefits under a program referred to in clause (ii)(III) for at least 24 months, which need not be consecutive.

`(vi) SECRETARY- Unless otherwise specified, the term `Secretary' means the Secretary of Labor.

`(D) AUTHORITY TO MAKE GRANTS-

`(i) DIRECT SERVICES- The Secretary shall make grants to Indian tribes, tribal organizations, and Alaska Native organizations on the basis of a formula determined in accordance with subparagraph (H)(ii) to carry out the activities described in subparagraph (E).

`(ii) PROGRAM SUPPORT- The Secretary shall, through grants or contracts with entities, or interagency agreements, carry out the activities described in subparagraph (F).

`(iii) APPROPRIATION-

`(I) IN GENERAL- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $37,000,000 for each of fiscal years 2004 through 2008 to carry out this paragraph.

`(II) RESERVATION OF FUNDS FOR PROGRAM SUPPORT- The Secretary may reserve an amount equal to not more than 1.5 percent of the amount appropriated under subclause (I) for a fiscal year to make grants or enter into contracts under clause (ii).

`(E) DIRECT SERVICE ACTIVITIES-

`(i) IN GENERAL- A recipient of a grant made under subparagraph (D)(i) shall use the funds provided under the grant to provide any services which may be useful in preparing eligible beneficiaries to enter or reenter the workforce, to retain employment or to advance to positions which may enable the eligible beneficiary and the beneficiary's family to become economically self-sufficient.

`(ii) SERVICES PERMITTED- Services provided with funds made available under a grant made under subparagraph (D)(i) may include--

`(I) assessment;

`(II) education;

`(III) job readiness and placement;

`(IV) occupational training (including on-the-job training);

`(V) work experience;

`(VI) wage subsidies;

`(VII) job retention;

`(VIII) job creation specifically for eligible beneficiaries;

`(IX) case management;

`(X) counseling;

`(XI) supportive services, including (but not limited to) child care, transportation, mental health and substance abuse treatment and prevention services important to employability; and

`(XII) counseling and other services to promote marriage, discourage teen pregnancies, assist in the formation and stabilization of 2-parent families, and address situations involving domestic violence.

`(iii) RETENTION OF ELIGIBILITY FOR OTHER SERVICES- An eligible beneficiary who receives services under subparagraph (D)(i) shall not be precluded from receiving other services from any State, local or tribal government agency or any other entity.

`(iv) DISREGARD- Income or services received by an eligible beneficiary under this paragraph shall be disregarded for purposes of determining eligibility for benefits under any means-tested program for which the eligibility requirements are established under Federal law.

`(F) PROGRAM SUPPORT ACTIVITIES-

`(i) IN GENERAL- In order to improve the effectiveness of services provided by Indian tribes, tribal organizations, and Alaska Native organizations under grants made under this paragraph, the Secretary shall, through grants, contracts, or interagency agreements, support activities that--

`(I) enhance the capacity of Indian tribes, tribal organizations, and Alaska Native organizations under this section to deliver the services authorized under subparagraph (D); and

`(II) test or demonstrate new or improved methods of providing such services.

`(ii) PREFERENCE- In awarding grants or contracts under subparagraph (D)(ii) to carry out this subparagraph, the Secretary shall implement a preference policy consistent with the terms of section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e(b)).

`(G) ADDITIONAL REQUIREMENTS-

`(i) DIRECT SERVICE ACTIVITIES-

`(I) AUTHORITY TO CONSOLIDATE FUNDS- An Indian tribe, tribal organization, or Alaska Native organization receiving a grant under subparagraph (D)(i) may consolidate funds received under the grant with assistance received from other programs in accordance with the provisions of the Indian Employment, Training and Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et seq.) or the provisions of the Tribal Self-Governance Act of 1994 (25 U.S.C. 458aa et seq.).

`(II) OPTION TO EXCLUDE PARTICIPANTS FROM DETERMINATION OF WORK PARTICIPATION RATES- A State, Indian tribe, or tribal organization may exclude individuals participating in a direct services program funded under a grant made under subparagraph (D)(i) for a month from the calculation of the work participation rate for the State or tribe for such month.

`(ii) APPLICABLE RULES- Any amount paid to an Indian tribe or tribal organization under this part that is used to carry out the activities described in subparagraph (E) or (F) shall not be subject to the requirements of this part, but shall be subject to the requirements specified in the regulations required under subparagraph (H)(iii), and the expenditure of any amount so used shall not be considered to be an expenditure under this part.

`(iii) AVAILABILITY OF FUNDS- Funds provided to a recipient of a grant or contract under subparagraph (D)(ii) shall remain available for obligation for 2 succeeding fiscal years after the fiscal year in which the grant is made or the contract is entered into.

`(H) PROGRAM ADMINISTRATION-

`(i) DESIGNATION OF OFFICE WITH PRIMARY RESPONSIBILITY- The Secretary shall designate a single organizational unit within the Department that shall have as its primary responsibility the administration of the activities authorized under this paragraph and of any related Indian programs administered by the Department.

`(ii) CONSULTATION-

`(I) IN GENERAL- The Secretary shall consult with Indian tribes and tribal organizations located throughout the United States and Alaska Native organizations on all aspects of the operation and administration of the activities authorized under this paragraph, including the promulgation of regulations, the design of a formula for the allocation of funds among Indian tribes, tribal organizations, and Alaska Native organizations, and the implementation of program support activities described in subparagraph (F).

`(II) ADVISORY COMMITTEE- The Secretary may utilize a broadly based advisory committee whose members are nominated by Indian tribes, tribal organizations, and Alaska Native organizations as part of the consultation required under subclause (I), except that the consultation process shall not be limited to discussions with such committee.

`(iii) REGULATIONS- The Secretary may issue regulations for the conduct of activities under this paragraph. All requirements imposed by such regulations, including reporting requirements, shall take into full consideration tribal circumstances and conditions.'.

(2) TRANSITION FROM OTHER TANF INDIAN EMPLOYMENT PROGRAMS-

(A) IN GENERAL- Subject to subparagraph (B), the Secretary of Health and Human Services shall provide for an orderly close-out of activities under the work program authorized in section 412(a)(2) of the Social Security Act (42 U.S.C. 612(a)(2)) (commonly referred to as `the Native Employment Works program' or the `NEW' program) as such section is in effect on September 30, 2003.

(B) REQUIREMENT- In closing out the activities referred to in subparagraph (A), the Secretary of Health and Human Services shall provide that grantees under a program referred to in that subparagraph shall be permitted to provide services through June 30, 2004, and shall be permitted to spend funds on administrative activities related to the close-out of grants under programs for up to 6 months after that date.

(b) APPLICATION OF INDIAN EMPLOYMENT, TRAINING, AND RELATED SERVICES DEMONSTRATION ACT OF 1992- Section 412(a)(4) of the Social Security Act (42 U.S.C. 612(a)), as added by subsection (a), is amended by adding at the end the following:

`(I) APPLICATION OF INDIAN EMPLOYMENT, TRAINING, AND RELATED SERVICES DEMONSTRATION ACT OF 1992- Notwithstanding any other provision of law, if an Indian tribe elects to incorporate the services it provides under this paragraph into a plan under section 6 of the Indian Employment, Training, and Related Services Demonstration Act of 1992 (25 U.S.C. 3405), the programs authorized to be conducted with grants made under this paragraph shall be--

`(i) considered to be programs subject to section 5 of the Indian Employment, Training, and Related Services Demonstration Act of 1992 (25 U.S.C. 3404); and

`(ii) subject to the single plan and single budget requirements of section 6 of that Act (25 U.S.C. 3405) and the single report format required under section 11 of that Act (25 U.S.C. 3410).'.

SEC. 6. CHILD CARE AND DEVELOPMENT BLOCK GRANT FUNDS FOR INDIAN TRIBES.

(a) INCREASE IN RESERVATION- Section 658O(a)(2) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m(a)(2)) is amended by striking `1 percent, and not more than 2 percent,' and inserting `5 percent'.

(b) PAYMENTS FOR THE BENEFIT OF INDIAN CHILDREN-

(1) HEALTH AND SAFETY STANDARDS- Section 658O(c)(2) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m(c)(2)) is amended by adding at the end the following:

`(D) HEALTH AND SAFETY STANDARDS- The applicant will establish requirements designed to protect the health and safety of children, which shall--

`(i) be stated in the application; and

`(ii) notwithstanding any other provision of law, including subparagraphs (F) and (G) of section 658E(c)(2), be the health and safety requirements applicable to child care providers that receive funds from the applicant to provide services under this subchapter.'.

(2) NEGOTIATED RULEMAKING- Section 658O(c) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m(c)) is amended--

(A) by redesignating paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), respectively; and

(B) by inserting after paragraph (3) the following:

`(4) NEGOTIATED RULEMAKING- In determining the base amount provided to Indian tribes and tribal organizations under this subsection, the Secretary shall conduct a negotiated rulemaking. The Secretary shall include in the negotiated rulemaking committee representatives of the Indian tribes and tribal organizations that the Secretary determines to be eligible to receive grants or contracts under this subsection. The Secretary shall conduct the negotiated rulemaking in accordance with subchapter III of chapter 5 of title 5, United States Code, as in effect on November 28, 1996.'.

(3) CONSTRUCTION OR RENOVATION- Paragraph (7)(C) of section 658O(c) of the Child Care and Development Block Grant Act of 1990 (as redesignated in paragraph (2)(A)) is amended--

(A) by striking `The' and inserting the following:

`(i) IN GENERAL- Except as provided in clause (ii), the'; and

(B) by adding at the end the following:

`(ii) TEMPORARY DECREASE- The Secretary may permit an Indian tribe or tribal organization to use amounts provided under this subsection for construction or renovation even if such use will result in a temporary decrease described in clause (i), if--

`(I) the Secretary determines that the construction or renovation will enable the tribe or organization to increase, in fiscal years subsequent to the year for which the determination under subparagraph (B) is made, the level of child care services provided by the tribe or organization as compared to the level of such services provided by the tribe or organization in the fiscal year for which the determination is made; and

`(II) the tribe or organization submits to the Secretary, and obtains approval of, a multiyear plan for the construction or renovation.'.

(c) CONFORMING AMENDMENT- Section 658F(b)(1) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858d(b)(1)) is amended by striking `658O(c)(6)' and inserting `658O(c)(7)'.

SEC. 7. EQUITABLE ACCESS.

(a) ENSURING EQUITABLE ACCESS-

(1) STATE PLAN REQUIREMENT- Section 402(a)(1)(B) of the Social Security Act (42 U.S.C. 602(a)(1)(B)) is amended by adding at the end the following:

`(v) The document shall describe how the State will ensure equitable access to benefits and services provided under the program for each member of an Indian tribe or tribal organization, who is domiciled in the State and is not eligible for assistance under a tribal family assistance plan approved under section 412.'.

(2) TRIBAL FAMILY ASSISTANCE PLAN REQUIREMENT- Section 412(b)(1) of the Social Security Act (42 U.S.C. 612(b)(1)) is amended--

(A) in subparagraph (E), by striking `and' at the end;

(B) in subparagraph (F), by striking the period and inserting `; and'; and

(C) by adding at the end the following:

`(G) describes how the Indian tribe will ensure equitable access to benefits and services provided under the plan for each member of the population to be served by the plan.'.

(3) ANNUAL REPORT TO CONGRESS-

(A) INCLUSION OF INFORMATION ON INDIANS SERVED BY STATE PROGRAMS- Section 411(b) of the Social Security Act (42 U.S.C. 611(b)) is amended--

(i) in paragraph (3), by striking `and' at the end;

(ii) in paragraph (4), by striking the period and inserting `; and'; and

(iii) by adding at the end the following:

`(5) State specific information on the demographics and caseload characteristics of Indians served by each State program funded under this part.'.

(B) CONFORMING AMENDMENTS- Section 411(a) of the Social Security Act (42 U.S.C. 611(a)) is amended--

(i) by redesignating paragraph (7) as paragraph (8); and

(ii) by inserting after paragraph (6), the following:

`(7) REPORT ON INDIANS SERVED BY THE STATE PROGRAM- The report required by paragraph (1) for a fiscal quarter shall include information on the demographics and caseload characteristics of Indians served by the State program during the quarter.'.

(b) CONSULTATION BETWEEN STATES AND INDIAN TRIBES OR OTHER INDIANS RESIDING ON A RESERVATION-

(1) STATE PLAN REQUIREMENT- Section 402(a)(5) of the Social Security Act (42 U.S.C. 602(a)(5)) is amended by striking `will' and all that follows through the period and inserting `will--

`(A) consult with each Indian tribe located within the State regarding the State plan in order to ensure equitable access to benefits and services provided under the plan for any member of such a tribe who is not eligible for assistance under a tribal family assistance plan approved under section 412; and

`(B) provide each member of an Indian tribe, who is domiciled in the State and is not eligible for assistance under a tribal family assistance plan approved under section 412, with equitable access to assistance under the State program funded under this part attributable to funds provided by the Federal Government.'.

(2) TRIBAL FAMILY ASSISTANCE PLAN REQUIREMENT- Section 412(b)(1) of the Social Security Act (42 U.S.C. 612(b)(1)), as amended by subsection (a)(2), is amended--

(A) in subparagraph (F), by striking `and' at the end;

(B) in subparagraph (G), by striking the period and inserting `; and'; and

(C) by adding at the end the following:

`(H) provides that the Indian tribe will consult with each State in which a service area of the plan is located on the operation of the plan and the provision of assistance or services to families under the plan.'.

(c) ADVISORY COMMITTEE ON THE STATUS OF INDIANS WHO DO NOT RESIDE IN INDIAN COUNTRY-

(1) IN GENERAL- The Secretary of Health and Human Services shall convene an advisory committee on the status of Indians who do not reside in Indian country (as defined in section 1151 of title 18, United States Code).

(2) DUTIES- The committee established under paragraph (1) shall make recommendations regarding how to ensure that Indians who do not reside in Indian country (as so defined) receive equitable access to benefits and services under the temporary assistance to needy families program under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and other publicly funded assistance programs.

(3) MEMBERSHIP-

(A) IN GENERAL- The committee established under paragraph (1) shall include representatives of--

(i) Federal, State, and tribal governments; and

(ii) Indians who do not reside in Indian country (as so defined).

(B) MAJORITY- A majority of the members of such committee shall be representatives of Indians who do not reside in Indian country (as so defined).

(d) GAO STUDY AND REPORT-

(1) STUDY- The Comptroller General of the United States shall conduct a study of the demographics of Indians who do not reside in Indian country (as defined in section 1151 of title 18, United States Code) that includes economic and health information, as well as information regarding the access of such Indians to benefits or services available under publicly funded programs.

(2) REPORT- Not later than June 30, 2004, the Comptroller General shall submit to Congress a report on the study conducted under paragraph (1).

SEC. 8. AREAS OF INDIAN COUNTRY OR ALASKAN NATIVE VILLAGES OF HIGH JOBLESSNESS.

(a) TIME LIMIT FOR RECEIPT OF ASSISTANCE- Section 408(a)(7)(D) of the Social Security Act (42 U.S.C. 608(a)(7)(D)) is amended--

(1) in the subparagraph heading, by striking `by adult' and all that follows through `unemployment' and inserting `in areas of Indian country or an Alaskan Native village with high joblessness';

(2) by striking clause (i) and inserting the following:

`(i) IN GENERAL- Subject to clause (ii), in determining the number of months for which an adult has received assistance under a State or tribal program funded under this part, the State or tribe shall disregard any month during which the adult lived in Indian country or an Alaskan Native village if the most reliable data available (or such other data submitted by a State or tribal program as the Secretary may approve) with respect to the month (or a period including the month) indicate that at least 20 percent of the adult recipients who were living in Indian country or in the village were jobless.';

(3) by redesignating clause (ii) as clause (iii); and

(4) by inserting after clause (i), the following:

`(ii) REQUIREMENT- A month may only be disregarded under clause (i) with respect to an adult recipient described in that clause if the adult is in compliance with program requirements.'.

(b) STATE FLEXIBILITY TO DEFINE WORK ACTIVITIES- Section 407(c)(2) of the Social Security Act (42 U.S.C. 607(c)(2)) is amended by adding at the end the following:

`(E) OPTIONAL MODIFICATION OF WORK REQUIREMENTS FOR RECIPIENTS RESIDING IN AREAS OF INDIAN COUNTRY OR AN ALASKAN NATIVE VILLAGE WITH HIGH JOBLESSNESS- Notwithstanding paragraph (1), if a State has included in the State plan a description of the State's policies in areas of Indian country or an Alaskan Native village described in section 408(a)(7)(D), the State may define the activities described in subsection (d) that a recipient who resides in such an area and who is participating in activities in accordance with an individual responsibility plan under section 408(b) may engage in for purposes of satisfying work requirements under the State program and for purposes of determining monthly participation rates under subsection (b).'.

SEC. 9. PARITY IN TREATMENT OF ALASKAN NATIVES.

(a) ELIMINATION OF SPECIAL RULE- Section 412 of the Social Security Act (42 U.S.C. 612) is amended by striking subsection (i).

(b) ELIMINATION OF SPECIAL DEFINITION- Section 419(4) of the Social Security Act (42 U.S.C. 619(4)) is amended to read as follows:

`(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANIZATION- The terms `Indian', `Indian tribe', and `tribal organization' have the meanings given such terms in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).'.

SEC. 10. AUTHORITY OF INDIAN TRIBES TO RECEIVE FEDERAL FUNDS FOR FOSTER CARE AND ADOPTION ASSISTANCE.

(a) CHILDREN PLACED IN TRIBAL CUSTODY ELIGIBLE FOR FOSTER CARE FUNDING- Section 472(a)(2) of the Social Security Act (42 U.S.C. 672(a)(2)) is amended--

(1) by striking `or (B)' and inserting `(B)'; and

(2) by inserting before the semicolon the following: `, or (C) an Indian tribe or tribal organization (as defined in section 479B(e)) or an intertribal consortium if the Indian tribe, tribal organization, or consortium is not operating a program pursuant to section 479B and (i) has a cooperative agreement with a State pursuant to section 479B(c) or (ii) submits to the Secretary a description of the arrangements (jointly developed or developed in consultation with the State) made by the Indian tribe, tribal organization, or consortium for the payment of funds and the provision of the child welfare services and protections required by this title'.

(b) PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS- Part E of title IV of the Social Security Act (42 U.S.C. 670 et seq.) is amended by adding at the end the following:

`SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.

`(a) APPLICATION- Except as provided in subsection (b), this part shall apply to an Indian tribe or tribal organization that elects to operate a program under this part in the same manner as this part applies to a State.

`(b) MODIFICATION OF PLAN REQUIREMENTS-

`(1) IN GENERAL- In the case of an Indian tribe or tribal organization submitting a plan for approval under section 471, the plan shall--

`(A) in lieu of the requirement of section 471(a)(3), identify the service area or areas and population to be served by the Indian tribe or tribal organization; and

`(B) in lieu of the requirement of section 471(a)(10), provide for the approval of foster homes pursuant to tribal standards and in a manner that ensures the safety of, and accountability for, children placed in foster care.

`(2) DETERMINATION OF FEDERAL SHARE-

`(A) PER CAPITA INCOME-

`(i) IN GENERAL- For purposes of determining the Federal medical assistance percentage applicable to an Indian tribe or tribal organization under paragraphs (1) and (2) of section 474(a), the calculation of an Indian tribe's or tribal organization's per capita income shall be based upon the service population of the Indian tribe or tribal organization as defined in its plan in accordance with paragraph (1)(A).

`(ii) CONSIDERATION OF OTHER INFORMATION- An Indian tribe or tribal organization may submit to the Secretary such information as the Indian tribe or tribal organization considers relevant to the calculation of the per capita income of the Indian tribe or tribal organization, and the Secretary shall consider such information before making the calculation.

`(B) ADMINISTRATIVE EXPENDITURES- The Secretary shall, by regulation, determine the proportions to be paid to Indian tribes and tribal organizations pursuant to section 474(a)(3), except that in no case shall an Indian tribe or tribal organization receive a lesser proportion than the corresponding amount specified for a State in that section.

`(C) SOURCES OF NON-FEDERAL SHARE- An Indian tribe or tribal organization may use Federal or State funds to match payments for which the Indian tribe or tribal organization is eligible under section 474.

`(3) MODIFICATION OF OTHER REQUIREMENTS- Upon the request of an Indian tribe, tribal organization, or a consortia of tribes or tribal organizations, the Secretary may modify any requirement under this part if, after consulting with the Indian tribe, tribal organization, or consortia of tribes or tribal organizations, the Secretary determines that modification of the requirement would advance the best interests and the safety of children served by the Indian tribe, tribal organization, or consortia of tribes or tribal organizations.

`(4) CONSORTIUM- The participating Indian tribes or tribal organizations of an intertribal consortium may develop and submit a single plan under section 471 that meets the requirements of this section.

`(c) COOPERATIVE AGREEMENTS- An Indian tribe, tribal organization, or intertribal consortium and a State may enter into a cooperative agreement for the administration or payment of funds pursuant to this part. In any case where an Indian tribe, tribal organization, or intertribal consortium and a State enter into a cooperative agreement that incorporates any of the provisions of this section, those provisions shall be valid and enforceable. Any such cooperative agreement that is in effect as of the date of enactment of this section, shall remain in full force and effect subject to the right of either party to the agreement to revoke or modify the agreement pursuant to the terms of the agreement.

`(d) REGULATIONS- Not later than 1 year after the date of enactment of this section, the Secretary shall, in full consultation with Indian tribes and tribal organizations, promulgate regulations to carry out this section.

`(e) DEFINITIONS OF INDIAN TRIBE; TRIBAL ORGANIZATIONS- In this section, the terms `Indian tribe' and `tribal organization' have the meanings given those terms in subsections (e) and (l) of section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b), respectively.'.

(c) EFFECTIVE DATE- The amendments made by this section take effect on the date of enactment of this Act without regard to regulations to implement such amendments being promulgated by such date.

SEC. 11. DEMONSTRATION PROGRAM TO ALLOW INDIAN TRIBES TO DETERMINE ELIGIBILITY FOR THE FOOD STAMP, MEDICAID, AND STATE CHILDREN'S HEALTH INSURANCE PROGRAMS.

(a) IN GENERAL- Notwithstanding any other provision of law, the Secretary of Health and Human Services, in consultation with the Secretary of Agriculture, shall conduct a demonstration program under which, not more than 10 Indian tribes (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)) with an approved tribal family assistance plan under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) (or the participating Indian tribes of an intertribal consortium with such an approved plan) shall be authorized to--

(1) determine the eligibility of Indian families for--

(A) benefits under the food stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);

(B) medical assistance under the medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.); and

(C) child health assistance under the State children's health insurance program under title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.);

(2) administer the provision of benefits or assistance under any or all of such programs to Indian families; or

(3) carry out both of the activities described in paragraphs (1) and (2).

(b) REQUIREMENTS-

(1) CONSISTENCY WITH STATE OPERATION OF PROGRAMS- Except as provided in paragraph (2), an activity may not be authorized to be carried out by an Indian tribe (or consortium) under subsection (a) unless the activity will be conducted in a manner that is consistent with the operation of such activity by any State in which the tribe (or consortium) is located.

(2) WAIVER OF MATCHING REQUIREMENTS- The Secretary of Health and Human Services and the Secretary of Agriculture may waive such applicable matching requirements under the programs referred to in subsection (a)(1) as may be necessary for a tribe or consortium to carry out an activity authorized under the demonstration program conducted under this section.

(3) NO WAIVER OF PROGRAM INTEGRITY REQUIREMENTS- The Secretary of Health and Human Services and the Secretary of Agriculture may not waive any requirement under a program referred to in subsection (a)(1) that is related to ensuring the integrity of an activity authorized under the demonstration program conducted under this section, including any financial penalty for violation of such a requirement.

(c) REPORTS- The Secretary of Health and Human Services and the Secretary of Agriculture jointly shall submit periodic reports to Congress on the demonstration program conducted under this section.

SEC. 12. TRIBAL CHILD SUPPORT ENFORCEMENT PROGRAMS.

Not later than 1 year after the date of enactment of this Act, the Secretary of Health and Human Services shall--

(1) promulgate final regulations for making direct payments to Indian tribes and tribal organizations under section 455(f) of the Social Security Act (42 U.S.C. 655(f)); and

(2) submit a report to Congress on the most appropriate methods of including tribal child support programs in the methodology used for child support incentive payments under section 458 of the Social Security Act (42 U.S.C. 658).

SEC. 13. BREAK THE CYCLE DEMONSTRATION GRANTS.

(a) AUTHORITY TO AWARD GRANTS-

(1) IN GENERAL- The Secretary of Health and Human Services, in consultation with the Secretary of Education, shall award grants to up to 10 Indian tribes (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)) to carry out the activities described in subsection (b).

(2) APPLICATION- An Indian tribe desiring a grant under this section shall submit--

(A) an application to the Secretary of Health and Human Services, at such time, in such manner, and containing such information as the Secretary may require; and

(B) a plan outlining how the tribe intends to use funds made available under the grant to carry out activities described in subsection (b) to help children of Indian families receiving assistance under the temporary assistance to needy families program under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) (in this section referred to as `TANF') obtain a secondary school diploma or its recognized equivalent.

(3) CRITERIA FOR AWARDING GRANTS-

(A) CONSULTATION WITH INDIAN TRIBES- The Secretary of Health and Human Services shall consult with Indian tribes regarding the establishment of criteria for awarding grants under this section.

(B) PRIORITY- The criteria established under subparagraph (A) shall require the Secretary of Health and Human Services to give priority to awarding grants to those Indian tribes applying that have the highest percentages of individuals that have not obtained a secondary school diploma or its recognized equivalent.

(4) STATE PARTNERSHIPS- An Indian tribe awarded a grant under this section may enter into a partnership with a State, a local educational agency, or a private elementary or secondary school to carry out the activities described in subsection (b).

(5) DEFINITION OF CHILD- In this section, the term `child' means an individual who has not attained age 21.

(b) ACTIVITIES DESCRIBED- The activities described in this subsection include--

(1) mentoring activities;

(2) tutoring activities;

(3) adjusting requirements applicable to the child or family under TANF;

(4) teen pregnancy prevention activities; and

(5) any other activities approved by the Secretary of Health and Human Services that are related to achieving the purpose described in subsection (a)(2)(B).

(c) EVALUATION AND REPORT-

(1) IN GENERAL- Of the amount appropriated under subsection (d) for fiscal year 2005, $1,000,000 shall be reserved by the Secretary of Health and Human Services for the purpose of conducting, through grant, contract, or interagency agreement, an evaluation of the activities carried out under grants awarded under this section.

(2) REPORT- The Secretary of Health and Human Services shall submit a report to Congress on the evaluation conducted under paragraph (1).

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Health and Human Services to carry out this section, $20,000,000 for each of fiscal years 2005 through 2008.

SEC. 14. RESERVATION OF FUNDS UNDER THE SOCIAL SERVICES BLOCK GRANT.

(a) ELIGIBILITY FOR PAYMENTS- Section 2002 of the Social Security Act (42 U.S.C. 1397a) is amended by adding at the end the following:

`(g)(1) An Indian tribe or tribal organization (as such terms are defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)) that administers a social services program shall be eligible for payment under this title for each fiscal year in which funds are reserved for such purposes under section 2003(d), in an amount equal to the pro rata share of the amount available for such payments for such fiscal year.

`(2) The Secretary, in consultation with Indian tribes and tribal organizations (as so defined) located throughout the United States, shall determine the extent to which the requirements applicable to payments to States under this title shall apply to payments made to Indian tribes and tribal organizations under paragraph (1).'.

(b) RESERVATION OF FUNDS- Section 2003 of the Social Security Act (42 U.S.C. 1397b) is amended--

(1) in subsection (b)(2)--

(A) by striking `the total amount' and inserting `(A) the total amount';

(B) by striking the period and inserting `; and'; and

(C) by adding at the end the following:

`(B) the amount reserved in subsection (d) for that fiscal year.'; and

(2) by adding at the end the following:

`(d)(1) For purposes of subsection (b)(2)(B), the amount reserved in this subsection is, with respect to any fiscal year in which the amount specified in subsection (c) exceeds $2,400,000,000, the amount in excess of such amount, not to exceed the sum of $10,000,000, plus the amount equal to 2 percent of the total amount in excess of $2,400,000,000.

`(2) The amount reserved under paragraph (1) shall be used to make payments to Indian tribes and tribal organizations described in section 2002(g)(1).'.

SEC. 15. RESEARCH ON TRIBAL WELFARE PROGRAMS AND POVERTY AMONG INDIANS.

Section 413 of the Social Security Act (42 U.S.C. 613) is amended by adding at the end the following:

`(k) TRIBAL WELFARE PROGRAMS AND EFFORTS TO REDUCE POVERTY AMONG INDIANS-

`(1) IN GENERAL- The Secretary, directly or through grants, contracts, or interagency agreements, shall conduct research on tribal family assistance programs conducted under section 412 and other tribal welfare programs and on efforts to reduce poverty among Indians.

`(2) PRIORITY FOR CERTAIN APPLICATIONS- With respect to applications for grants under paragraph (1), the Secretary shall give priority to applications to conduct research in cooperation with tribal governments or tribally controlled colleges or universities.

`(3) TECHNICAL ASSISTANCE- The Secretary may use funds appropriated under paragraph (4) to provide technical assistance concerning data reporting and collection with respect to research conducted under this subsection.

`(4) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $2,000,000 for fiscal year 2004 for the purpose of carrying out this subsection.'.

SEC. 16. EFFECTIVE DATE.

Unless otherwise provided, the amendments made by this Act take effect on October 1, 2003.

END