To amend part A of title IV of the Social Security Act to require a comprehensive strategic plan for the State temporary assistance to needy families program and to give States the flexibility to implement innovative welfare programs that have been proven effective in other States.

January 30, 2003

Mr. BINGAMAN introduced the following bill; which was read twice and referred to the Committee on Finance

To amend part A of title IV of the Social Security Act to require a comprehensive strategic plan for the State temporary assistance to needy families program and to give States the flexibility to implement innovative welfare programs that have been proven effective in other States.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Self Sufficiency and Accountability Act of 2003'.

SEC. 2. COMPREHENSIVE STRATEGIC TANF PLAN.

(a) IN GENERAL- Section 402 of the Social Security Act (42 U.S.C. 602) is amended to read as follows:

`SEC. 402. ELIGIBLE STATES; STATE PLAN.

`(a) IN GENERAL- As used in this part, the term `eligible State' means, with respect to a fiscal year, a State that, during the 27-month period ending with the close of the 1st quarter of the fiscal year, has submitted to the Secretary, and revised when necessary in accordance with subsection (b), a written plan that the Secretary has found includes the following:

`(1) OUTLINE OF FAMILY ASSISTANCE PROGRAM-

`(A) PROGRAMMATIC INFORMATION- Information relating to the State program, including the following:

`(i) With respect to each program that will be funded under this part, or with qualified State expenditures claimed by the State to meet the requirements of section 409(a)(7), over the 2-year period for which the plan is being submitted--

`(I) the name of the program;

`(II) the goals of the program;

`(III) a description of the benefits and services provided in the program;

`(IV) a description of principal eligibility rules and populations served under the program, including the circumstances under which the State provides benefits or services to individuals who are not citizens of the United States;

`(V) a description of how the State will ensure fair and equitable treatment among program applicants and recipients and how the State will provide opportunities for applicants and recipients who have been adversely affected to be heard in a State administrative or appeal process, including a description of the steps that the State has taken (or will take) to ensure--

`(aa) compliance with nondiscrimination, civil rights, and employment laws throughout the process of providing services under this part, including at the time of application for benefits, during the applicant assessment process, when determining availability of an eligibility for benefits and services, during the actual delivery of services or benefits, and when deciding to terminate benefits in full or in part; and

`(bb) that program applicants and recipients are aware of their rights and the process for enforcing their rights; and

`(VI) a description of how the program meets 1 or more of the purposes described in section 401 or, in the case of a program funded with qualified State expenditures, how the program meets the criteria in section 409(a)(7)(B).

`(ii) With respect to each program that will be funded under this part, or with qualified State expenditures claimed by the State to meet the requirements of section 409(a)(7), over the 2-year period for which the plan is being submitted and that provides assistance--

`(I) a description of the applicable financial and nonfinancial eligibility rules including, income eligibility thresholds, the treatment of earnings, asset eligibility rules, and excluded forms of income;

`(II) a description of applicable work-related requirements, including which adults are required to participate in such activities, the activities in which they can participate, the criteria for determining the activity an adult is assigned to, and the procedures used to screen and assess participants for barriers to employment including physical or mental impairments, substance abuse, learning disabilities, domestic violence, inadequate or unstable housing and very low basic skills;

`(III) a description of applicable time limit policies, including the length of the time limit, exemption and extension policies, and procedures and policies for providing services to families reaching time limits and who

have lost assistance due to time limits; and

`(IV) a description of applicable sanction policies and procedures, including the program requirements for which a sanction can be applied for failure to comply, the amount and duration of sanctions, the State-defined criteria that constitute good cause for failing to meet each program requirement for which a sanction may be imposed, how the State will comply with the requirement in section 407(e)(2), and the procedures in place to identify families who are unable to comply with program requirements due to various barriers (such as physical or mental impairments, domestic violence, unavailable or inaccessible child care, illiteracy, lack of English proficiency) and procedures for providing services to those families rather than imposing a sanction on them.

`(iii) A description of--

`(I) the primary problems that families receiving assistance, and families who have recently stopped receiving assistance, under the State program funded under this part, or under a program funded with qualified State expenditures as defined in section 407(a)(7), experience in securing and retaining adequate, affordable housing and the estimated extent of each such problem, including the price of such housing in various parts of the State that include a large proportion of recipients of assistance under the State program, and the steps that have been and will be taken by the State and other public or private entities that administer housing programs to address these problems; and

`(II) the methods the State has adopted to identify barriers to work posed by the living arrangement, housing cost, and housing location of individuals eligible for participation in the State program funded under this part and the services and benefits that have been or will be provided by the State and other public or private entities to help families overcome such barriers.

`(iv) A description of the steps the State will take to restrict the use and disclosure of information about individuals and families applying for or receiving assistance under a program funded under this part, or with qualified State expenditures as defined in section 409(a)(7).

`(v) A description of how the State will ensure the availability of a stable and professional workforce in the administration of the State program under this part with the resources, skills, and expertise necessary to successfully carry out the program, including a description of the plan of the State to provide program staff with training on the following:

`(I) Program information and services.

`(II) The rights of recipients of assistant under all laws applicable to the activities of the program, including nondiscrimination and employment laws.

`(III) Cultural diversity and sensitivity.

`(IV) Referral of recipients of assistance to all appropriate programs and services for which such recipients are eligible.

`(V) Screening of recipients of assistance for serious barriers to employment and referral to qualified specialists.

`(vi) A description of the steps that the State has taken to inform applicants for and recipients of assistance under the State program under this part of their rights and obligations under such program. Such description shall include--

`(I) an explanation of the manner in which the State will ensure that such information is communicated effectively to all such individuals, including how the State will provide appropriate translation or interpretation services where necessary; and

`(II) an assurance that the communication of such information will take place throughout the service delivery and processing.

`(B) INFORMATION ABOUT PROGRAMS DESIGNED OR IMPLEMENTED AT SUB-STATE LEVELS- With respect to any program described in clauses (i) or (ii) of subparagraph (A) in which the State permits counties or other substate entities to design their own rules with respect to any of the information required under such clauses, the State plan shall be designed to reflect the policies of each such county or substate entity.

`(C) STATE GOALS AND BENCHMARKS- For each purpose contained in section 401(a), the State plan shall provide the following information:

`(i) A description of specific goals the State will attempt to achieve over the succeeding 5-year period to further that purpose.

`(ii) A description of how the State intends to meet the goals described in clause (i) over such 5-year period and a description of the steps the State will take during such period to work toward achieving such goals.

`(iii) A description of performance measures that will be used to measure progress made by the State toward achieving each such goal, including the methodology for computing such measures. Each performance and outcome measure described in the State plan under this subparagraph shall be reported by the State annually in a form prescribed by the Secretary.

`(iv) An identification of those key factors external to the program and beyond the control of the State that could significantly affect the attainment of the goals.

`(v) A description of any additional evaluation methods the State will use to measure progress made by the State toward achieving such goals.

`(2) MINIMUM PARTICIPATION RATES- A description of how the minimum participation rates specified in section 407 will be satisfied.

`(3) ESTIMATE OF EXPENDITURES- An estimate of the total amount of State or local expenditures under all programs described in clauses (i) or (ii) of paragraph (1)(A) for the fiscal year in which the plan is submitted.

`(4) SPECIAL PROVISIONS-

`(A) CERTIFICATION REGARDING ASSESSMENT OF REGIONAL ECONOMIES AND INFORMING LOCALITIES OF SECTORAL LABOR SHORTAGES AND IDENTIFICATION OF SELF-SUFFICIENCY STANDARD-

`(i) IN GENERAL- A certification by the chief executive officer of the State that, during the fiscal year, the State will--

`(I) assess its regional economies and provide information to political subdivisions of the State about the industrial sectors that are experiencing a labor shortage and that provide higher entry-level wage opportunities for unemployed and underemployed job seekers identified in accordance with section 411(c); and

`(II) identify the self-sufficiency standards for families after the families cease to receive assistance under the State program funded under this part in accordance with clause (ii).

`(ii) REQUIREMENTS FOR IDENTIFICATION OF SELF-SUFFICIENCY STANDARDS-

`(I) IN GENERAL- The State shall provide to the Secretary a document adopted or developed by the State, that--

`(aa) describes the income needs of families (in this part referred to as `State self-sufficiency standards') based on family size, the number and ages of children in the family, and sub-State geographical considerations; and

`(bb) if the State has a sizeable Native American population, includes information specific to the needs of that population.

`(II) CRITERIA- The State self-sufficiency standards shall separately specify the monthly costs of housing, food, child care, transportation, health care, other basic needs, and taxes (including tax benefits), and shall be determined using national, State and local data on the cost of purchasing goods and services in the marketplace.

`(III) CATEGORIES OF FAMILIES- The State self-sufficiency standards shall categorize families--

`(aa) by whether there are 1 or 2 adults in the family;

`(bb) by whether there are 0, 1, 2, 3, or more than 3 children in the family; and

`(cc) by the age of each child in the family, according to whether a child is an infant, of pre-school age, of school age, or a teenager.

`(IV) REGULATIONS- The Secretary shall prescribe the protocols, criteria, cost categories, definitions, and means of making inflation adjustments to be used in developing self-sufficiency standards pursuant to this clause, which shall be based on commonly accepted definitions of adequacy, such as those used for establishing fair market rents, and that reflect, to the extent possible, consensus and use among those calculating family budgets and self-sufficiency standards.

`(V) DATA- The self-sufficiency standards developed pursuant to this clause shall be--

`(aa) recalculated on adoption if the data on which the standards are based is more than 3 years old;

`(bb) recalculated every 5 years after adoption; and

`(cc) updated for inflation each year after adoption in which the standards are not be recalculated pursuant to item (bb).

`(VI) TECHNICAL ASSISTANCE IN DEVELOPING STANDARDS- The Secretary may provide financial or technical assistance to an eligible State to enable the State to develop or improve the State self-sufficiency standards and produce State reports required by section 411(d). The Secretary shall carry out this paragraph by making a grant to, or entering into a contract with an organization or institution with substantial experience in calculating and implementing on the State level family budgets and self-sufficiency standards. An organization or institution desiring to provide technical assistance described in this subclause shall submit to the Secretary an application at such time, in such manner, and accompanied by such information as the Secretary may require.

`(B) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD SUPPORT ENFORCEMENT PROGRAM- A certification by the chief executive officer of the State that, during the fiscal year, the State will operate a child support enforcement program under the State plan approved under part D.

`(C) CERTIFICATION THAT THE STATE WILL OPERATE A FOSTER CARE AND ADOPTION ASSISTANCE PROGRAM- A certification by the chief executive officer of the State that, during the fiscal year, the State will operate a foster care and adoption assistance program under the State plan approved under part E, and that the State will take such actions as are necessary to ensure that children receiving assistance under such part are eligible for medical assistance under the State plan under title XIX.

`(D) CERTIFICATION OF THE ADMINISTRATION OF THE PROGRAM- A certification by the chief executive officer of the State specifying which State agency or agencies will administer and supervise the family assistance program referred to in paragraph (1) for the fiscal year, which shall include assurances that local governments and private sector organizations--

`(i) have been consulted regarding the plan and design of welfare services in the State so that services are provided in a manner appropriate to local populations; and

`(ii) have had at least 45 days to submit comments on the plan and the design of such services.

`(E) CERTIFICATION THAT THE STATE WILL PROVIDE INDIANS WITH EQUITABLE ACCESS TO ASSISTANCE- A certification by the chief executive officer of the State that, during the fiscal year, the State will 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.

`(F) CERTIFICATION OF STANDARDS AND PROCEDURES TO ENSURE AGAINST PROGRAM FRAUD AND ABUSE- A certification by the chief executive officer of the State that the State has established and is enforcing standards and procedures to ensure against program fraud and abuse, including standards and procedures concerning nepotism, conflicts of interest among individuals responsible for the administration and supervision of the State program, kickbacks, and the use of political patronage.

`(G) OPTIONAL CERTIFICATION OF STANDARDS AND PROCEDURES TO ENSURE THAT THE STATE WILL SCREEN FOR AND IDENTIFY DOMESTIC VIOLENCE-

`(i) IN GENERAL- At the option of the State, a certification by the chief executive officer of the State that the State has established and is enforcing standards and procedures to--

`(I) screen and identify individuals receiving assistance under this part with a history of domestic violence while maintaining the confidentiality of such individuals;

`(II) refer such individuals to counseling and supportive services; and

`(III) waive, pursuant to a determination of good cause, other program requirements such as time limits (for so long as necessary) for individuals receiving assistance, residency requirements, child support cooperation requirements, and family cap provisions, in cases where compliance with such requirements would make it more difficult for individuals receiving assistance under this part to escape domestic violence or unfairly penalize such individuals who are or have been victimized by such violence, or individuals who are at risk of further domestic violence.

`(ii) DOMESTIC VIOLENCE DEFINED- For purposes of this subparagraph, the term `domestic violence' has the same meaning as the term `battered or subjected to extreme cruelty', as defined in section 408(a)(7)(C)(iii).

`(b) PROCEDURES FOR SUBMITTING AND AMENDING STATE PLANS-

`(1) STANDARD STATE PLAN FORMAT- The Secretary shall, after notice and public comment, develop a proposed Standard State Plan Form to be used by States under subsection (a). Such form shall be finalized by the Secretary for use by the State not later than February 1, 2003.

`(2) REQUIREMENT FOR COMPLETED PLAN USING STANDARD STATE PLAN FORMAT BY FISCAL YEAR 2004- Notwithstanding any other provision of law, each State shall submit a complete State plan, using the Standard State Plan Form developed under paragraph (1), not later than October 1, 2003.

`(3) PUBLIC NOTICE AND COMMENT- Prior to submitting a State plan to the Secretary under this section, the State shall--

`(A) make the proposed State plan available to the public through an appropriate State maintained Internet web site and through other means as the State determines appropriate;

`(B) allow for a reasonable public comment period of not less than 45 days; and

`(C) make comments received concerning such plan or, at the discretion of the State, a summary of the comments received available to the public through such web site and through other means as the State determines appropriate.

`(4) PUBLIC AVAILABILITY OF STATE PLAN- A State shall ensure that the State plan, that is in effect for any fiscal year, is available to the public through an appropriate State maintained Internet web site and through other means as the State determines appropriate.

`(5) AMENDING THE STATE PLAN- A State shall file an amendment to the State plan with the Secretary if the State determines that there has been a material change in any information required to be included in the State plan or any other information the State has included in the plan, including substantial changes in the use of funding. Prior to submitting an amendment to the State plan to the Secretary, the State shall--

`(A) make the proposed amendment available to the public as provided for in paragraph (3)(A);

`(B) allow for a reasonable public comment period of not less than 45 days; and

`(C) make the comments available as provided for in paragraph (3)(C).'.

(b) CONFORMING AMENDMENT- Section 408(a)(5)(B)(i) of the Social Security Act (42 U.S.C. 608(a)(5)(B)(i)) is amended by striking `referred to in section 402(a)(4)'.

SEC. 3. MONITORING OF FEDERAL AND STATE EFFORTS; ASSESSMENT OF REGIONAL ECONOMIES.

(a) GENERAL REPORTING REQUIREMENT- Section 411(a) of the Social Security Act (42 U.S.C. 611(a)) is amended--

(1) by redesignating paragraph (7) as paragraph (9); and

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

`(7) SELF-SUFFICIENCY STANDARD- The report required by paragraph (1) for a fiscal quarter shall include a description of the self-sufficiency standard identified for families in accordance with section 402(a)(4)(A)(ii).

`(8) INFORMATION REGARDING CIVIL RIGHTS- As part of the information collected and reported under paragraph (1), the State shall include information on the number of complaints filed by applicants for or recipients of assistance under the State program under this part that allege civil rights or employment law violations and the status of such complaints, including the number of complaints pending at the time the report is prepared. Such information shall be delineated by alleged violation, the number of resolutions during the reporting period in favor of and against the complainants, and the average length of time to process complaints.'.

(b) ANNUAL REPORTS TO CONGRESS- Section 411(b) of the Social Security Act (42 U.S.C. 611(b)) is amended--

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

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

(3) by adding at the end the following:

`(5) the status of civil rights complaints filed under this part with the Office of Civil Rights of the Department of Health and Human Services by applicants for or recipients of assistance under a State program, including the number of complaints pending at the time the report is prepared delineated by alleged violation, the number of resolutions during the reporting period in favor of and against the complainants, and the average length of time to process complaints.'.

(c) ANNUAL ASSESSMENT OF REGIONAL ECONOMIES; ANNUAL REPORT ON PROGRAMS AND SERVICES LEADING TO SELF-SUFFICIENCY- Section 411 of the Social Security Act (42 U.S.C. 611) is amended by adding at the end the following:

`(c) ASSESSMENT OF REGIONAL ECONOMIES TO IDENTIFY HIGHER ENTRY LEVEL WAGE OPPORTUNITIES IN INDUSTRIES EXPERIENCING LABOR SHORTAGES-

`(1) IN GENERAL- An eligible State annually shall conduct an assessment of its regional economies to identify higher entry level wage opportunities in industries experiencing labor market shortages.

`(2) MATTERS TO BE ASSESSED-

`(A) LABOR MARKET- The assessment shall--

`(i) identify industries or occupations that have or expect to grow, that have or expect a loss of skilled workers, or that have a need for workers;

`(ii) identify the entry-level education and skills requirements for the industries or occupations that have or expect a need for workers; and

`(iii) analyze the entry-level wages and benefits in identified industries or occupations.

`(B) JOB SEEKERS- The assessment shall create a profile in each regional economy in the State, of the characteristics of the unemployed and underemployed residents of such regional economy, including educational attainment, barriers to employment, geographic concentrations, self-sufficiency needs, and availability and utilization of need support services.

`(C) EDUCATION AND TRAINING INFRASTRUCTURE- The assessment shall create a profile, in each regional economy in the State of the education, training, and support services in place in such regional economy to prepare workers for the industries or occupations identified pursuant to subparagraph (A).

`(D) ALIGNING INDUSTRIES AND JOB SEEKERS- The assessment shall compare the characteristics of the industries or occupations identified pursuant to subparagraph (A) to the profile of the job seekers in the State and the profile of the education and training infrastructure in the State.

`(3) SHARING OF INFORMATION WITH LOCALITIES- The State shall share with all counties, municipalities, local workforce investment boards established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832), and other appropriate political subdivisions of the State, information obtained pursuant to this subsection regarding higher entry-wage job opportunities in industries experiencing labor shortages, and information regarding opportunities for collaboration with institutions of higher education, community-based organizations, and economic development and welfare agencies.

`(4) REPORTS OF ASSESSMENT OF REGIONAL ECONOMIES- Each eligible state shall submit to the Secretary annually a report that contains the annual assessment conducted pursuant to this subsection.

`(d) ANNUAL REPORT ON PROGRAMS AND SERVICES LEADING TO SELF-SUFFICIENCY- A State to which a grant is made under section 403(a) for a fiscal year shall submit to the Secretary a report that describes, with respect to the preceding fiscal year--

`(1) a description of the ways in which the State program funded under this part, and support services provided by the State to recipients of assistance under that program, moved families toward self-sufficiency, and that highlights the programs and services that appeared to have a particularly positive effect on families achieving self-sufficiency;

`(2) the total family income for families that left the State program funded under this part (including earnings, unemployment compensation, and child support); and

`(3) the benefits received by families that have left the State program funded under this part (including benefits under the food stamp program under the Food Stamp Act of 1977, the medicaid program under title XIX, the State children's health insurance program under title XXI, earned income tax credits, and housing assistance).'.

(d) RESEARCH, EVALUATIONS, AND NATIONAL STUDIES- Section 413(h) of the Social Security Act (42 U.S.C. 613(h)) is amended by adding at the end the following:

`(4) TECHNICAL ASSISTANCE IN ASSESSING REGIONAL ECONOMIES-

`(A) IN GENERAL- The Secretary may provide technical assistance to an eligible State to enable the State to conduct the assessments required by section 411(c).

`(B) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS- For the cost of providing technical assistance under subparagraph (A), there are authorized to be appropriated to the Secretary not more than $1,500,000 for each fiscal year in which amounts are appropriated to carry out the State programs funded under this part.'.

SEC. 4. PENALTY FOR FAILURE TO COMPLY WITH FAIR TREATMENT REQUIREMENTS.

Section 409(a)(7) of the Social Security Act (42 U.S.C. 609(a)(7)) is amended by adding at the end the following:

`(C) INCREASE IN APPLICABLE PERCENTAGE FOR FAILURE TO COMPLY WITH FAIR TREATMENT REQUIREMENTS- The applicable percent under subparagraph (B)(ii) with respect to a State shall be increased by 5 percentage points for any year in which the Secretary determines that the State has failed to comply with the State plan requirements of clause (i)(V) or (vi) of section 402(a)(1)(A).'.

SEC. 5. WAIVERS.

(a) CONTINUATION OF PREWELFARE REFORM WAIVERS- Section 415 of the Social Security Act (42 U.S.C. 615) is amended by adding at the end the following new subsection:

`(e) CONTINUATION OF WAIVERS APPROVED OR SUBMITTED BEFORE DATE OF ENACTMENT OF WELFARE REFORM- Notwithstanding subsection (a), with respect to any State that is operating under a waiver described in that subsection which would otherwise expire on a date that occurs during the period that begins on October 1, 2002, and ends on September 30, 2007, the State may elect to continue to operate under that waiver, on the same terms and conditions as applied to the waiver on the day before such date, through September 30, 2007.'.

(b) APPROVAL OF WAIVERS TO DUPLICATE INNOVATIVE PROGRAMS- Section 415 of the Social Security Act (42 U.S.C. 615), as amended by subsection (a), is further amended by adding at the end the following:

`(f) REQUIREMENT TO APPROVE WAIVERS TO DUPLICATE INNOVATIVE PROGRAMS-

`(1) IN GENERAL- Notwithstanding any other provision of law, if a State submits an application for a waiver of 1 or more requirements of this part that contains terms that are similar or identical to the terms of a waiver eligible to be continued under subsection (e), and the application satisfies the requirements of paragraph (2), the Secretary--

`(A) shall approve the application for a period of at least 2 years, but not more than 4 years, unless the Secretary determines that approval would be inconsistent with the purposes of this part set forth in section 401;

`(B) at the end of the waiver period, shall review documentation of the effectiveness of the waiver provided by the State; and

`(C) if such documentation adequately demonstrates that the program as implemented under the waiver has been effective, may renew the waiver for such period as the Secretary determines appropriate, but not later than September 30, 2007.

`(2) APPLICATION REQUIREMENTS- An application for a waiver described in paragraph (1) shall--

`(A) describe relevant State caseload characteristics and labor market conditions;

`(B) specify how the waiver is likely to result in improved employment outcomes, improved child well-being, or both;

`(C) describe the State's proposed approach for evaluation of the program under the waiver; and

`(D) include an agreement to conduct an independent evaluation of the waiver and to submit the results of the evaluation to the Secretary.'.

(c) CONFORMING AMENDMENT- Section 415(b)(1) of the Social Security Act (42 U.S.C. 615(b)(1)) is amended by inserting `, extended under subsection (e), or approved under subsection (f)' after `(a)'.

SEC. 6. EFFECTIVE DATE.

(a) IN GENERAL- The amendments made by this Act shall take effect as if enacted on October 1, 2002.

(b) DELAY PERMITTED IF STATE LEGISLATION REQUIRED- In the case of a State plan under section 402 of the Social Security Act which the Secretary of Health and Human Services determines requires State legislation (other than legislation appropriating funds) in order for the plan to meet the additional requirements imposed by the amendments made by this Act, the State plan shall not be regarded as failing to comply with the requirements of such section 402 solely on the basis of the failure of the plan to meet such additional requirements before the 1st day of the 1st calendar quarter beginning after the close of the 1st regular session of the State legislature that begins after the date of the enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.

END