[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5352 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5352
To strengthen and expand proven anti-poverty programs and initiatives.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 31, 2014
Ms. Lee of California (for herself, Ms. Norton, Mr. Conyers, Mr. Al
Green of Texas, Mr. Rush, Ms. Sewell of Alabama, Ms. Fudge, Ms. Eddie
Bernice Johnson of Texas, Mr. Cummings, Mr. Rangel, Mr. Lewis, Mr.
Meeks, Mr. Clyburn, Mr. Richmond, Mr. Payne, Mr. Carson of Indiana, Ms.
Clarke of New York, Ms. Schakowsky, Ms. Kaptur, Mr. Crowley, Mr. Honda,
Mr. Ellison, Mr. Scott of Virginia, Ms. Hahn, Mr. Hinojosa, Ms. Chu,
Mr. Grijalva, Mrs. Beatty, Mr. Huffman, Ms. Moore, Mr. Veasey, Ms.
Roybal-Allard, Mrs. Christensen, Mr. Cleaver, Mr. Butterfield, and Ms.
Jackson Lee) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on House
Administration, Education and the Workforce, Financial Services,
Agriculture, Transportation and Infrastructure, Rules, the Budget,
Oversight and Government Reform, and the Judiciary, 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
_______________________________________________________________________
A BILL
To strengthen and expand proven anti-poverty programs and initiatives.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pathways Out of Poverty Act of
2014''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
DIVISION A--EDUCATION
TITLE I--STRONG START FOR AMERICA'S CHILDREN
Subtitle A--Access to Voluntary Prekindergarten for Low- and Moderate-
Income Families
Sec. 111. Purposes.
Sec. 112. Definitions.
Sec. 113. Program authorization.
Sec. 114. Allotments and reservations of funds.
Sec. 115. State eligibility criteria.
Sec. 116. State applications.
Sec. 117. State use of funds.
Sec. 118. Additional prekindergarten services.
Sec. 119. Performance measures and targets.
Sec. 120. Matching requirements.
Sec. 121. Eligible local entity applications.
Sec. 122. Required subgrant activities.
Sec. 123. Report and evaluation.
Sec. 124. Prohibition of required participation or use of funds for
assessments.
Sec. 125. Coordination with Head Start programs.
Sec. 126. Technical assistance in program administration.
Sec. 127. Authorization of appropriations.
Subtitle B--Prekindergarten Development Grants
Sec. 151. Prekindergarten development grants.
TITLE II--RESTORING SUMMER PELL GRANTS
Sec. 201. Federal Pell Grants.
TITLE III--RESTORING TITLE IV ABILITY-TO-BENEFIT ELIGIBILITY
Sec. 301. Ability-to-benefit eligibility.
TITLE IV--YOUTH PROMISE/FEDERAL COORDINATION OF LOCAL AND TRIBAL
JUVENILE JUSTICE INFORMATION AND EFFORTS
Sec. 401. PROMISE Advisory Panel.
Sec. 402. Geographic assessment of resource allocation.
TITLE V--PROMISE GRANTS
Sec. 501. Purposes.
Sec. 502. Definitions.
Subtitle A--PROMISE Assessment and Planning Grants
Sec. 510. PROMISE Assessment and Planning grants authorized.
Sec. 511. PROMISE Coordinating Councils.
Sec. 512. Needs and strengths assessment.
Sec. 513. PROMISE Plan components.
Sec. 514. Authorization of appropriations.
Subtitle B--PROMISE Implementation Grants
Sec. 530. PROMISE Implementation grants authorized.
Sec. 531. PROMISE Implementation grant application requirements.
Sec. 532. Grant award guidelines.
Sec. 533. Reports.
Sec. 534. Authorization of appropriations.
Subtitle C--General PROMISE Grant Provisions
Sec. 540. Nonsupplanting clause.
Sec. 541. Grant application review panel.
Sec. 542. Evaluation of PROMISE grant programs.
DIVISION B--HOUSING
TITLE VI--COMMON SENSE HOUSING INVESTMENT
Sec. 601. Congressional findings.
Sec. 602. Replacement of mortgage interest deduction with mortgage
interest credit.
Sec. 603. Deduction allowed for interest and taxes relating to land for
dwelling purposes owned or leased by
cooperative housing corporations.
Sec. 604. Use of mortgage interest savings to increase low-income
housing tax credit.
Sec. 605. Use of mortgage interest savings for affordable housing
programs.
TITLE VII--LOW-INCOME HOUSING TAX CREDIT FOR HOMELESS YOUTH
Sec. 701. Students who were homeless youths or homeless veterans
permitted to occupy low-income housing
units.
TITLE VIII--RENTERS TAX CREDIT
Sec. 801. Renters tax credit.
DIVISION C--NUTRITION
TITLE IX--IMPROVING TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM
Sec. 901. References.
Sec. 902. State plans required to address whether and how States will
provide assistance to neediest geographic
areas.
Sec. 903. Funding of the TANF program.
Sec. 904. Work requirements.
Sec. 905. Work rules.
Sec. 906. Prohibition on imposing limit of less than 60 months on
duration of assistance.
Sec. 907. Response of TANF program to economic recessions.
Sec. 908. Requirement that States use merit-based system in
administration of TANF programs.
Sec. 909. Ban on using Federal TANF funds to replace State and local
spending that does not meet the definition
of qualified State expenditures.
Sec. 910. TANF assistance to meet basic family economic needs.
Sec. 911. State plans and reports on child poverty.
Sec. 912. Requirement that States adopt standards and procedures to
address domestic and sexual violence among
TANF recipients.
Sec. 913. Child care entitlement.
Sec. 914. Child support enforcement.
Sec. 915. State option to extend eligibility for assistance to children
through age 21; prohibition on considering
financial aid tied to education of child in
determining eligibility for, or amount of
assistance; prohibition on imposing
additional requirements based on
educational enrollment of child.
Sec. 916. Elimination of certain other bars to TANF assistance.
Sec. 917. Effective date.
TITLE X--EMPLOYMENT ADVANCEMENT, RETENTION, AND NAVIGATION ACT
Sec. 1011. Focus on employment.
Sec. 1012. Modification relating to the Contingency Fund.
Sec. 1013. Training for in-demand jobs.
Sec. 1014. Effective date.
TITLE XI--RESTORING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS FUNDING
CUTS INSTITUTED IN FARM BILL (HEAT-AND-EAT)
Sec. 1101. Restoration of standard utility allowances based on the
receipt of energy assistance payments.
TITLE XII--HELPING HUNGRY STUDENTS LEARN
Sec. 1201. Findings.
Sec. 1202. School Lunch Program.
Sec. 1203. School Breakfast Program.
Sec. 1204. Summer Electronic Benefits Transfer for Children program.
Sec. 1205. Weekends and holidays without hunger.
TITLE XIII--FOOD ASSISTANCE TO IMPROVE REINTEGRATION ACT
Sec. 1301. Repeal of denial of benefits.
DIVISION D--LABOR/JOB TRAINING
TITLE XV--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK
Subtitle A--Supporting Unemployed Workers
Sec. 1501. Short title.
Part I--Extension of Emergency Unemployment Compensation and Certain
Extended Benefits Provisions, and Establishment of Self-Employment
Assistance Program
Sec. 1511. Extension of Emergency Unemployment Compensation program.
Sec. 1512. Temporary extension of extended benefit provisions.
Sec. 1513. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
Part II--Reemployment NOW Program
Sec. 1521. Establishment of Reemployment NOW program.
Sec. 1522. Distribution of funds.
Sec. 1523. State plan.
Sec. 1524. Bridge to Work program.
Sec. 1525. Wage insurance.
Sec. 1526. Enhanced reemployment strategies.
Sec. 1527. Self-employment programs.
Sec. 1528. Additional innovative programs.
Sec. 1529. Guidance and additional requirements.
Sec. 1530. Report of information and evaluations to Congress and the
public.
Sec. 1531. State.
Part III--Short-Time Compensation Program
Sec. 1541. Temporary financing of short-time compensation payments in
States with programs in law.
Sec. 1542. Temporary financing of short-time compensation agreements.
Sec. 1543. Grants for short-time compensation programs.
Sec. 1544. Assistance and guidance in implementing programs.
Sec. 1545. Reports.
Subtitle B--Long-Term Unemployed Hiring Preferences
Sec. 1551. Long-term unemployed workers work opportunity tax credits.
Subtitle C--Pathways Back to Work
Sec. 1561. Short title.
Sec. 1562. Authorization of appropriations.
Sec. 1563. Availability of funds.
Sec. 1564. Subsidized employment for unemployed, low-income adults.
Sec. 1565. Summer employment and year-round employment opportunities
for low-income youth.
Sec. 1566. Work-based employment strategies of demonstrated
effectiveness.
Sec. 1567. General requirements.
Sec. 1568. Definitions.
Subtitle D--Prohibition of Discrimination in Employment on the Basis of
an Individual's Status as Unemployed
Sec. 1571. Short title.
Sec. 1572. Findings and purpose.
Sec. 1573. Definitions.
Sec. 1574. Prohibited acts.
Sec. 1575. Enforcement.
Sec. 1576. Federal and State immunity.
Sec. 1577. Relationship to other laws.
Sec. 1578. Severability.
Sec. 1579. Effective date.
TITLE XVI--LIVING AMERICAN WAGE
Sec. 1601. Findings; sense of Congress.
Sec. 1602. Minimum wage.
TITLE XVII--EMERGENCY UNEMPLOYMENT COMPENSATION EXTENSION
Sec. 1701. Extension of Emergency Unemployment Compensation program.
Sec. 1702. Temporary extension of extended benefit provisions.
Sec. 1703. Extension of funding for reemployment services and
reemployment and eligibility assessment
activities.
Sec. 1704. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
Sec. 1705. Flexibility for unemployment program agreements.
DIVISION E--ANTI-POVERTY TAX PROVISION
TITLE XVIII--CHILD TAX CREDIT PERMANENCY
Sec. 1801. Modifications of the child tax credit.
TITLE XIX--EARNED INCOME TAX CREDIT
Sec. 1901. Expansion of Earned Income Credit.
TITLE XX--CHILD CARE ACCESS AND REFUNDABILITY EXPANSION ACT
Sec. 2001. Credit for dependent care expenses.
DIVISION F--MISCELLANEOUS
TITLE XXI--POVERTY IMPACT TRIGGER
Sec. 2101. Certain poverty impact legislation subject to point of
order.
Sec. 2102. Congressional Budget Office Poverty Impact Division.
Sec. 2103. Exercise of rulemaking powers.
Sec. 2104. Effective date.
TITLE XXII--HALF IN TEN ACT TO CREATE A NATIONAL STRATEGY TO REDUCE
POVERTY
Sec. 2201. Findings.
Sec. 2202. Definitions.
Sec. 2203. Establishment of the Federal Interagency Working Group on
Reducing Poverty.
Sec. 2204. Appointment and responsibilities of the Director.
Sec. 2205. Consultation.
Sec. 2206. Reports to Congress and the public.
DIVISION A--EDUCATION
TITLE I--STRONG START FOR AMERICA'S CHILDREN
Subtitle A--Access to Voluntary Prekindergarten for Low- and Moderate-
Income Families
SEC. 111. PURPOSES.
The purposes of this subtitle are to--
(1) establish a Federal-State partnership to provide access
to high-quality public prekindergarten programs for all
children from low-income and moderate-income families to ensure
that they enter kindergarten prepared for success;
(2) broaden participation in such programs to include
children from additional middle-class families; and
(3) promote access to high-quality kindergarten, and high-
quality early childhood education programs and settings for
children.
SEC. 112. DEFINITIONS.
In this subtitle:
(1) Child with a disability.--The term ``child with a
disability'' has the meaning given the term in section 602 of
the Individuals with Disabilities Education Act (20 U.S.C.
1401).
(2) Comprehensive early learning assessment system.--The
term ``comprehensive early learning assessment system''--
(A) means a coordinated and comprehensive system of
multiple assessments, each of which is valid and
reliable for its specified purpose and for the
population with which it will be used, that--
(i) organizes information about the process
and context of young children's learning and
development to help early childhood educators
make informed instructional and programmatic
decisions; and
(ii) conforms to the recommendations of the
National Research Council reports on early
childhood; and
(B) includes, at a minimum--
(i) child screening measures;
(ii) child formative assessments;
(iii) measures of environmental quality;
and
(iv) measures of the quality of adult-child
interactions.
(3) Dual language learner.--The term ``dual language
learner'' means an individual who is limited English
proficient.
(4) Early childhood education program.--The term ``early
childhood education program'' has the meaning given the term
under section 103 of the Higher Education Act of 1965 (20
U.S.C. 1003).
(5) Elementary school.--The term ``elementary school'' has
the meaning given the term in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
(6) Eligibility determination date.--The term ``eligibility
determination date'' means the date used to determine
eligibility for public elementary school in the community in
which the eligible local entity involved is located.
(7) Eligible local entity.--The term ``eligible local
entity'' means--
(A) a local educational agency, including--
(i) a charter school or a charter
management organization that acts as a local
educational agency; or
(ii) an educational service agency in
partnership with a local educational agency;
(B) an entity that carries out an early childhood
education program; or
(C) a consortium of entities described in
subparagraph (A) or (B).
(8) Full-day.--The term ``full-day'' means a day that is--
(A) equivalent to a full school day at the public
elementary schools in a State; and
(B) not less than 5 hours a day.
(9) High-quality prekindergarten program.--The term ``high-
quality prekindergarten program'' means a prekindergarten
program supported by an eligible local entity that includes, at
a minimum, the following elements based on nationally
recognized standards:
(A) Serves children who--
(i) are age 4 or children who are age 3 or
4, by the eligibility determination date
(including children who turn age 5 while
attending the program); or
(ii) have attained the legal age for State-
funded prekindergarten.
(B) Requires high qualifications for staff,
including that teachers meet the requirements of 1 of
the following clauses:
(i) The teacher has a bachelor's degree in
early childhood education or a related field
with coursework that demonstrates competence in
early childhood education.
(ii) The teacher--
(I) has a bachelor's degree in any
field;
(II) has demonstrated knowledge of
early childhood education by passing a
State-approved assessment in early
childhood education;
(III) while employed as a teacher
in the prekindergarten program, is
engaged in on-going professional
development in early childhood
education for not less than 2 years;
and
(IV) not more than 3 years after
starting employment as a teacher in the
prekindergarten program, enrolls in and
completes a State-approved educator
preparation program in which the
teacher receives training and support
in early childhood education.
(iii) The teacher has bachelor's degree
with a credential, license, or endorsement that
demonstrates competence in early childhood
education.
(C) Maintains an evidence-based maximum class size.
(D) Maintains an evidence-based child to
instructional staff ratio.
(E) Offers a full-day program.
(F) Provides developmentally appropriate, evidence-
based curricula and learning environments that are
aligned with the State's early learning and development
standards described in section 115(1).
(G) Offers instructional staff salaries comparable
to kindergarten through grade 12 teaching staff.
(H) Provides for ongoing monitoring and program
evaluation to ensure continuous improvement.
(I) Offers accessible comprehensive services for
children that include, at a minimum--
(i) screenings for vision, dental, health
(including mental health), and development and
referrals, and assistance obtaining services,
when appropriate;
(ii) family engagement opportunities that
take into account home language, such as parent
conferences (including parent input about their
child's development) and support services, such
as parent education;
(iii) nutrition services, including
nutritious meals and snack options aligned with
requirements set by the most recent Child and
Adult Care Food Program guidelines promulgated
by the Department of Agriculture as well as
regular, age-appropriate, nutrition education
for children and their families;
(iv) programs coordinated with local
educational agencies and entities providing
programs authorized under section 619 and part
C of the Individuals with Disabilities
Education Act (20 U.S.C. 1419 and 1431 et
seq.);
(v) physical activity programs aligned with
evidence-based guidelines, such as those
recommended by the Institute of Medicine, and
which take into account and accommodate
children with disabilities;
(vi) additional support services, as
appropriate, based on the findings of the needs
analysis as described in section 120; and
(vii) on-site coordination, to the maximum
extent feasible.
(J) Provides high-quality professional development
for all staff, including regular in-classroom
observation for teachers and teacher assistants by
individuals trained in such observation.
(K) Meets the education performance standards in
effect under section 641A(a)(1)(B) of the Head Start
Act (42 U.S.C. 9836a(a)(1)(B)).
(L) Maintains evidence-based health and safety
standards.
(10) Governor.--The term ``Governor'' means the chief
executive officer of a State.
(11) Homeless child.--The term ``homeless child'' means a
child or youth described in section 725(2) of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11434a(2).
(12) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(13) Indian tribe; tribal organization.--The terms ``Indian
tribe'' and ``tribal organization'' have the meanings given the
terms in 658P of the Child Care and Development Block Grant of
1990 (42 U.S.C. 9858n).
(14) Limited english proficient.--The term ``limited
English proficient'' has the meaning given the term in section
637 of the Head Start Act (42 U.S.C. 9832).
(15) Local educational agency; state educational agency;
educational service agency.--The terms ``local educational
agency'', ``State educational agency'', and ``educational
service agency'' have the meanings given the terms in section
9101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(16) Migratory child.--The term ``migratory child'' has the
meaning given the term in section 1309 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6399).
(17) Outlying area.--The term ``outlying area'' means each
of the United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and the Republic
of Palau.
(18) Poverty line.--The term ``poverty line'' means the
official poverty line (as defined by the Office of Management
and Budget)--
(A) adjusted to reflect the percentage change in
the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the
Department of Labor for the most recent 12-month period
or other interval for which the data are available; and
(B) applicable to a family of the size involved.
(19) Secondary school.--The term ``secondary school'' has
the meaning given the term in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
(20) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(21) State.--Except as otherwise provided in this subtitle,
the term ``State'' means each of the 50 States, the District of
Columbia, the Commonwealth of Puerto Rico, and each of the
outlying areas.
(22) State advisory council on early childhood education
and care.--The term ``State Advisory Council on Early Childhood
Education and Care'' means the State Advisory Council on Early
Childhood Education and Care established under section 642B(b)
of the Head Start Act (42 U.S.C. 9837b(b)).
SEC. 113. PROGRAM AUTHORIZATION.
From amounts made available to carry out this subtitle, the
Secretary, in consultation with the Secretary of Health and Human
Services, shall award grants to States to implement high-quality
prekindergarten programs, consistent with the purposes of this subtitle
described in section 111. For each fiscal year, the funds provided
under a grant by a State shall equal the allotment determined for the
State under section 114.
SEC. 114. ALLOTMENTS AND RESERVATIONS OF FUNDS.
(a) Reservation.--From the amount made available each fiscal year
to carry out this subtitle, the Secretary shall--
(1) reserve not less than 1 percent and not more than 2
percent for payments to Indian tribes and tribal organizations;
(2) reserve \1/2\ of 1 percent for the outlying areas to be
distributed among the outlying areas on the basis of their
relative need, as determined by the Secretary in accordance
with the purposes of this subtitle;
(3) reserve \1/2\ of 1 percent for eligible local entities
that serve children in families who are engaged in migrant or
seasonal agricultural labor; and
(4) reserve not more than 1 percent or $30,000,000,
whichever amount is less, for national activities, including
administration, technical assistance, and evaluation.
(b) Allotments.--
(1) In general.--From the amount made available each fiscal
year to carry out this subtitle and not reserved under
subsection (a), the Secretary shall make allotments to States
in accordance with paragraph (2) that have submitted an
approved application.
(2) Allotment amount.--
(A) In general.--Subject to subparagraph (B), the
Secretary shall allot the amount made available under
paragraph (1) for a fiscal year among the States in
proportion to the number of children who are age 4 who
reside within the State and are from families with
incomes at or below 200 percent of the poverty line for
the most recent year for which satisfactory data are
available, compared to the number of such children who
reside in all such States for that fiscal year.
(B) Minimum allotment amount.--No State receiving
an allotment under subparagraph (A) may receive less
than \1/2\ of 1 percent of the total amount allotted
under such subparagraph.
(3) Reallotment and carry over.--
(A) In general.--If one or more States do not
receive an allotment under this subsection for any
fiscal year, the Secretary may use the amount of the
allotment for that State or States, in such amounts as
the Secretary determines appropriate, for either or
both of the following:
(i) To increase the allotments of States
with approved applications for the fiscal year,
consistent with subparagraph (B).
(ii) To carry over the funds to the next
fiscal year.
(B) Reallotment.--In increasing allotments under
subparagraph (A)(i), the Secretary shall allot to each
State with an approved application an amount that bears
the same relationship to the total amount to be
allotted under subparagraph (A)(i), as the amount the
State received under paragraph (2) for that fiscal year
bears to the amount that all States received under
paragraph (2) for that fiscal year.
(4) State.--For purposes of this subsection, the term
``State'' means each of the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
(c) Flexibility.--The Secretary may make minimal adjustments to
allotments under this subsection, which shall neither lead to a
significant increase or decrease in a State's allotment determined
under subsection (b), based on a set of factors, such as the level of
program participation and the estimated cost of the activities
specified in the State plan under section 116(a)(2).
SEC. 115. STATE ELIGIBILITY CRITERIA.
A State is eligible to receive a grant under this subtitle if the
State demonstrates to the Secretary that the State--
(1) has established or will establish early learning and
development standards that describe what children from birth to
kindergarten entry should know and be able to do, are
universally designed and developmentally, culturally, and
linguistically appropriate, are aligned with the State's
challenging academic content standards and challenging student
academic achievement standards, as adopted under section
1111(b)(1) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6311(b)(1)), and cover the essential domains of
school readiness, which address--
(A) physical well-being and motor development;
(B) social and emotional development;
(C) approaches to learning, including creative arts
expression;
(D) developmentally appropriate oral and written
language and literacy development; and
(E) cognition and general knowledge, including
early mathematics and early scientific development;
(2) has the ability or will develop the ability to link
prekindergarten data with its elementary school and secondary
school data for the purpose of collecting longitudinal
information for all children participating in the State's high-
quality prekindergarten program and any other federally funded
early childhood program that will remain with the child through
the child's public education through grade 12;
(3) offers State-funded kindergarten for children who are
eligible children for that service in the State; and
(4) has established a State Advisory Council on Early
Childhood Education and Care.
SEC. 116. STATE APPLICATIONS.
(a) In General.--To receive a grant under this subtitle, the
Governor of a State, in consultation with the Indian tribes and tribal
organizations in the State, if any, shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may reasonably require. At a minimum, each such
application shall include--
(1) an assurance that the State--
(A) will coordinate with and continue to
participate in the programs authorized under section
619 and part C of the Individuals with Disabilities
Education Act (20 U.S.C. 1419 and 1431 et seq.), the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.), and the maternal, infant, and
early childhood home visiting programs funded under
section 511 of the Social Security Act (42 U.S.C. 711)
for the duration of the grant;
(B) will designate a State-level entity (such as an
agency or joint interagency office), selected by the
Governor, for the administration of the grant, which
shall coordinate and consult with the State educational
agency if the entity is not the State educational
agency; and
(C) will establish, or certify the existence of,
program standards for all State prekindergarten
programs consistent with the definition of a high-
quality prekindergarten program under section 112;
(2) a description of the State's plan to--
(A) use funds received under this subtitle and the
State's matching funds to provide high-quality
prekindergarten programs, in accordance with section
117(d), with open enrollment for all children in the
State who--
(i) are described in section 112(9)(A); and
(ii) are from families with incomes at or
below 200 percent of the poverty line;
(B) develop or enhance a system for monitoring
eligible local entities that are receiving funds under
this subtitle for compliance with quality standards
developed by the State and to provide program
improvement support, which may be accomplished through
the use of a State-developed system for quality rating
and improvement;
(C) if applicable, expand participation in the
State's high-quality prekindergarten programs to
children from families with incomes above 200 percent
of the poverty line;
(D) carry out the State's comprehensive early
learning assessment system, or how the State plans to
develop such a system, ensuring that any assessments
are culturally, developmentally, and age-appropriate
and consistent with the recommendations from the study
on Developmental Outcomes and Assessments for Young
Children by the National Academy of Sciences,
consistent with section 649(j) of the Head Start Act
(42 U.S.C. 9844);
(E) develop, implement, and make publicly available
the performance measures and targets described in
section 119;
(F) increase the number of teachers with bachelor's
degrees in early childhood education, or with
bachelor's degrees in another closely related field and
specialized training in early childhood education,
including how institutions of higher education will
support increasing the number of teachers with such
degrees and training, including through the use of
assessments of prior learning, knowledge, and skills to
facilitate and expedite attainment of such degrees;
(G) coordinate and integrate the activities funded
under this subtitle with Federal, State, and local
services and programs that support early childhood
education and care, including programs supported under
this subtitle, the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6301 et seq.), the Individuals
with Disabilities Education Act (20 U.S.C. 1400 et
seq.), the Head Start Act (42 U.S.C. 9831 et seq.), the
Community Services Block Grant Act (42 U.S.C. 9901 et
seq.), the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858 et seq.), the temporary
assistance for needy families program under part A of
title IV of the Social Security Act (42 U.S.C. 601 et
seq.), the State incentive grant program under section
14006 of the American Recovery and Reinvestment Act of
2009 (Public Law 111-5), federally funded early
literacy programs, the maternal, infant, and early
childhood home visiting programs funded under section
511 of the Social Security Act (42 U.S.C. 711), health
improvements to child care funded under title XIX of
the Social Security Act (42 U.S.C. 1396 et seq.), the
program under subtitle B of title VII of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11431 et
seq.), the Investing In Innovation program under
section 14007 of the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5), programs authorized
under part E of title IV of the Social Security Act (42
U.S.C. 670 et seq.), the Fostering Connections to
Success and Increasing Adoptions Act of 2008 (Public
Law 110-351), and any other Federal, State, or local
early childhood education programs used in the State;
(H) award subgrants to eligible local entities, and
in awarding such subgrants, facilitate a delivery
system of high-quality prekindergarten programs that
includes diverse providers, such as providers in
community-based, public school, and private settings,
and consider the system's impact on options for
families;
(I) in the case of a State that does not have a
funding mechanism for subgranting funds to implement
high-quality prekindergarten, use objective criteria in
awarding subgrants to eligible local entities that will
implement high-quality prekindergarten programs,
including actions the State will take to ensure that
eligible local entities will coordinate with local
educational agencies or other early learning providers,
as appropriate, to carry out activities to provide
children served under this subtitle with a successful
transition from preschool into kindergarten, which
activities shall include--
(i) aligning curricular objectives and
instruction;
(ii) providing staff professional
development, including opportunities for joint-
professional development on early learning and
kindergarten through grade 3 standards,
assessments, and curricula;
(iii) coordinating family engagement and
support services; and
(iv) encouraging the shared use of
facilities and transportation, as appropriate;
(J) use the State early learning and development
standards described in section 115(1) to address the
needs of dual language learners, including by
incorporating benchmarks related to English language
development;
(K) identify barriers, and propose solutions to
overcome such barriers, which may include seeking
assistance under section 126, in the State to
effectively use and integrate Federal, State, and local
public funds and private funds for early childhood
education that are available to the State on the date
on which the application is submitted;
(L) support articulation agreements (as defined in
section 486A of the Higher Education Act of 1965 (20
U.S.C. 1093a)) between public 2-year and public 4-year
institutions of higher education in the State for early
childhood teacher preparation programs and related
fields;
(M) ensure that the higher education programs in
the State have the capacity to prepare a workforce to
provide high-quality prekindergarten programs;
(N) support workforce development, including State
and local policies that support prekindergarten
instructional staff's ability to earn a degree,
certification, or other specializations or
qualifications, including policies on leave,
substitutes, and child care services, including non-
traditional hour child care;
(O) hold eligible local entities accountable for
use of funds;
(P) ensure that the State's early learning and
development standards are integrated into the
instructional and programmatic practices of high-
quality prekindergarten programs and related programs
and services, such as those provided to children under
section 619 and part C of the Individuals with
Disabilities Education Act (20 U.S.C. 1419 and 1431 et
seq.);
(Q) increase the number of children in the State
who are enrolled in high-quality kindergarten programs
and carry out a strategy to implement such a plan;
(R) coordinate the State's activities supported by
grants under this subtitle with activities in State
plans required under the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.), the
Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.), the Head Start Act (42 U.S.C. 9831 et
seq.), the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858 et seq.), and the Adult
Education and Family Literacy Act (20 U.S.C. 9201 et
seq.);
(S) encourage eligible local entities to coordinate
with community-based learning resources, such as
libraries, arts and arts education programs,
appropriate media programs, family literacy programs,
public parks and recreation programs, museums,
nutrition education programs, and programs supported by
the Corporation for National and Community Service;
(T) work with eligible local entities, in
consultation with elementary school principals, to
ensure that high-quality prekindergarten programs have
sufficient facilities to meet the needs of children
eligible for prekindergarten;
(U) support local early childhood coordinating
entities, such as local early childhood councils, if
applicable, and help such entities to coordinate early
childhood education programs with high-quality
prekindergarten programs to ensure effective and
efficient delivery of early childhood education program
services;
(V) ensure that the provision of high-quality
prekindergarten programs will not lead to a diminution
of services for infants and toddlers or disrupt the
care of infants and toddlers in the geographic area
served by the eligible local entity, which may include
demonstrating that the State will direct funds to
provide high-quality early childhood education and care
to infants and toddlers in accordance with section
117(d); and
(W) ensure that all high-quality prekindergarten
programs the State supports under this Act will conduct
criminal history background checks that meet the
requirements of subsection (b) on employees and
applicants for employment with direct access to
children; and
(3) an inventory of the State's higher education programs
that prepare individuals for work in a high-quality
prekindergarten program, including--
(A) certification programs;
(B) associate degree programs;
(C) baccalaureate degree programs;
(D) master's degree programs; and
(E) other programs that lead to a specialization in
early childhood education, or a related field.
(b) Criminal History Background Checks.--
(1) In general.--The criminal history background checks
required under subsection (a)(2)(Z) shall include--
(A) a search of the State criminal registry or
repository in the State in which the employee resides
and previously resided;
(B) a search of the State-based child abuse and
neglect registries and databases in the State in which
the employee resides and previously resided;
(C) a Federal Bureau of Investigation fingerprint
check using the Integrated Automated Fingerprint
Identification System; and
(D) a search of the National Sex Offender Registry
established under section 119 of the Adam Walsh Child
Protection and Safety Act of 2006 (42 U.S.C. 16919).
(2) Prohibition of employment.--To be eligible to receive a
grant under this subtitle, a State shall prohibit an individual
with direct access to children from employment with a program
supported with grant funds under this subtitle if the
individual has been convicted of a violent felony or any
violent or sexual crime against a minor, as defined by the
State.
(3) Updated checks.--To be eligible to receive a grant
under this subtitle, each criminal history background check
conducted on an employee as required under subsection (a)(2)(Z)
shall be periodically repeated or updated in accordance with
State law.
(4) Appeal process.--To be eligible to receive a grant
under this subtitle, a State shall provide an individual with a
timely process by which to--
(A) appeal the results of a criminal history
background check conducted under this section to
challenge the accuracy or completeness of the
information produced by such background check; and
(B) seek appropriate relief for any final
employment decision based on materially inaccurate or
incomplete information produced by such background
check.
(c) Development of Application.--In developing an application for a
grant under this subtitle, a State shall consult with the State
Advisory Council on Early Childhood Education and Care and incorporate
such Council's recommendations, where applicable.
(d) Construction.--Nothing in this section shall be construed to
alter or otherwise affect the rights, remedies, and procedures afforded
school employees, local educational agency employees, and the employees
of early childhood education programs under Federal, State, or local
laws (including applicable regulations or court orders) or under the
terms of collective bargaining agreements, memoranda of understanding,
or other agreements between such employees and their employers.
SEC. 117. STATE USE OF FUNDS.
(a) Reservation for Quality Improvement Activities.--
(1) In general.--A State that receives a grant under this
subtitle may reserve for, not more than the first 4 years such
State receives such a grant, not more than 20 percent of the
grant funds for quality improvement activities if such
activities support the elements of high-quality prekindergarten
programs. Such quality improvement activities may include
supporting teachers and principals in a State's high-quality
prekindergarten program, licensed or regulated child care, or
Head Start programs to enable such teachers to earn a
baccalaureate degree in early childhood education, or closely
related field, through activities which may include--
(A) expanding or establishing scholarships,
counseling, and compensation initiatives to cover the
cost of tuition, fees, materials, transportation, and
release time for such teachers; and
(B) providing ongoing professional development
opportunities, including regular in-classroom
observation by individuals trained in such observation,
for such teachers, principals, and teachers assistants
to enable such teachers, principals, and teachers
assistants to carry out the elements of high-quality
prekindergarten programs, which may include activities
that address--
(i) promoting children's development across
the essential domains of early learning and
development;
(ii) developmentally appropriate teacher-
child interaction;
(iii) effective family engagement;
(iv) providing culturally competent
instruction;
(v) working with a diversity of children
and families, including children with special
needs and dual language learners;
(vi) childhood nutrition and physical
education programs; and
(vii) supporting the implementation of
evidence-based curricula.
(2) Not subject to matching.--The amount reserved under
paragraph (1) shall not be subject to the matching requirements
under section 120.
(3) Coordination.--A State that reserves an amount under
paragraph (1) shall coordinate the use of such amount with
activities funded under section 658G of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858e) and the
Head Start Act (42 U.S.C. 9831 et seq.).
(4) Construction.--A State may not use funds reserved under
this subsection to meet the requirement described in section
112(9)(G).
(b) Subgrants for High-Quality Prekindergarten Programs.--A State
that receives a grant under this subtitle shall award subgrants of
sufficient size to eligible local entities to enable such eligible
local entities to implement high-quality prekindergarten programs for
children who--
(1) are described in section 112(9)(A);
(2) reside within the State; and
(3) are from families with incomes at or below 200 percent
of the poverty line.
(c) Administration.--A State that receives a grant under this
subtitle may reserve not more than 1 percent of the grant funds for
administration of the grant, and may use part of that reservation for
the maintenance of the State Advisory Council on Early Childhood
Education and Care.
(d) Early Childhood Education and Care Programs for Infants and
Toddlers.--
(1) Use of allotment for infants and toddlers.--An eligible
State may apply to use, and the appropriate Secretary may grant
permission for the State to use, not more than 15 percent of
the funds made available through a grant received under this
subtitle to award subgrants to early childhood education
programs to provide, consistent with the State's early learning
and development guidelines for infants and toddlers, high-
quality early childhood education and care to infants and
toddlers who reside within the State and are from families with
incomes at or below 200 percent of the poverty line.
(2) Application.--To be eligible to use the grant funds as
described in paragraph (1), the State shall submit an
application to the appropriate Secretary at such time, in such
manner, and containing such information as the Secretary may
require. Such application shall, at a minimum, include a
description of how the State will--
(A) designate a lead agency which shall administer
such funds;
(B) ensure that such lead agency, in coordination
with the State's Advisory Council on Early Childhood
Education and Care, will collaborate with other
agencies in administering programs supported under this
subsection for infants and toddlers in order to obtain
input about the appropriate use of such funds and
ensure coordination with programs for infants and
toddlers funded under the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), the
Head Start Act (42 U.S.C. 9831 et seq.) (including any
Early Learning Quality Partnerships established in the
State under section 645B of the Head Start Act, as
added by section 202), the Race to the Top and Early
Learning Challenge program under section 14006 of
Public Law 111-5 (123 Stat. 283), the maternal, infant,
and early childhood home visiting programs funded under
section 511 of the Social Security Act (42 U.S.C. 711),
and part C of the Individuals with Disabilities
Education Act (20 U.S.C. 1431 et seq.);
(C) ensure that infants and toddlers who benefit
from amounts made available under this subsection will
transition to and have the opportunity to participate
in a high-quality prekindergarten program supported
under this subtitle;
(D) in awarding subgrants, give preference to early
childhood education programs that have a plan to
increase services to children with special needs,
including children with developmental delays or
disabilities, children who are dual language learners,
homeless children, children who are in foster care,
children of migrant families, children eligible for
free or reduced-price lunch under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et
seq.), or children in the child welfare system; and
(E) give priority to activities carried out under
this subsection that will increase access to high-
quality early childhood education programs for infants
and toddlers in local areas with significant
concentrations of low-income families that do not
currently benefit from such programs.
(3) Eligible providers.--A State may use the grant funds as
described in paragraph (1) to serve infants and toddlers only
by working with early childhood education program providers
that--
(A) offer full-day, full-year care, or otherwise
meet the needs of working families; and
(B) meet high-quality standards, such as--
(i) Early Head Start program performance
standards under the Head Start Act (42 U.S.C.
9831 et seq.); or
(ii) high quality, demonstrated, valid, and
reliable program standards that have been
established through a national entity that
accredits early childhood education programs.
(4) Federal administration.--
(A) In general.--The Secretary of Education shall
bear responsibility for obligating and disbursing funds
to support activities under this subsection and
ensuring compliance with applicable laws and
administrative requirements, subject to paragraph (3).
(B) Interagency agreement.--The Secretary of
Education and the Secretary of Health and Human
Services shall jointly administer activities supported
under this subsection on such terms as such Secretaries
shall set forth in an interagency agreement. The
Secretary of Health and Human Services shall be
responsible for any final approval of a State's
application under this subsection that addresses the
use of funds designated for services to infants and
toddlers.
(C) Appropriate secretary.--In this subsection, the
term ``appropriate Secretary'' used with respect to a
function, means the Secretary designated for that
function under the interagency agreement.
SEC. 118. ADDITIONAL PREKINDERGARTEN SERVICES.
(a) Prekindergarten for 3-Year-Olds.--Each State that certifies to
the Secretary that the State provides universally available, voluntary,
high-quality prekindergarten programs for 4-year-old children who
reside within the State and are from families with incomes at or below
200 percent of the poverty line may use the State's allocation under
section 114(b) to provide high-quality prekindergarten programs for 3-
year-old children who reside within the State and are from families
with incomes at or below 200 percent of the poverty line.
(b) Subgrants.--In each State that has a city, county, or local
educational agency that provides universally available high-quality
prekindergarten programs for 4-year-old children who reside within the
State and are from families with incomes at or below 200 percent of the
poverty line the State may use amounts from the State's allocation
under section 114(b) to award subgrants to eligible local entities to
enable such eligible local entities to provide high-quality
prekindergarten programs for 3-year-old children who are from families
with incomes at or below 200 percent of the poverty line and who reside
in such city, county or local educational agency.
SEC. 119. PERFORMANCE MEASURES AND TARGETS.
(a) In General.--A State that receives a grant under this subtitle
shall develop, implement, and make publicly available the performance
measures and targets for the activities carried out with grant funds.
Such measures shall, at a minimum, track the State's progress in--
(1) increasing school readiness across all domains for all
categories of children, as described in section 123(b)(7),
including children with disabilities and dual language
learners;
(2) narrowing school readiness gaps between minority and
nonminority children, and low-income children and more
advantaged children, in preparation for kindergarten entry;
(3) decreasing placement for children in elementary school
in special education programs and services as described in part
B of the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.);
(4) increasing the number of programs meeting the criteria
for high-quality prekindergarten programs, as defined by the
State and in accordance with section 112;
(5) decreasing the need for grade-to-grade retention in
elementary school;
(6) if applicable, ensuring that high-quality
prekindergarten programs do not experience instances of chronic
absence among the children who participate in such programs;
(7) increasing the number and percentage of low-income
children in high-quality early childhood education programs
that receive financial support through funds provided under
this subtitle; and
(8) providing high-quality nutrition services, nutrition
education, physical activity, and obesity prevention programs.
(b) Prohibition of Misdiagnosis Practices.--A State shall not, in
order to meet the performance measures and targets described in
subsection (a), engage in practices or policies that will lead to the
misdiagnosis or under-diagnosis of disabilities or developmental delays
among children who are served through programs supported under this
subtitle.
SEC. 120. MATCHING REQUIREMENTS.
(a) Matching Funds.--
(1) In general.--Except as provided in paragraph (2), a
State that receives a grant under this subtitle shall provide
matching funds from non-Federal sources, as described in
subsection (c), in an amount equal to--
(A) 10 percent of the Federal funds provided under
the grant in the first year of grant administration;
(B) 10 percent of the Federal funds provided under
the grant in the second year of grant administration;
(C) 20 percent of the Federal funds provided under
the grant in the third year of grant administration;
(D) 30 percent of the Federal funds provided under
the grant in the fourth year of grant administration;
(E) 40 percent of the Federal funds provided under
the grant in the fifth year of grant administration;
(F) 50 percent of the Federal funds provided under
the grant in the sixth year of grant administration;
(G) 75 percent of the Federal funds provided under
the grant in the seventh year of grant administration;
and
(H) 100 percent of the Federal funds provided under
the grant in the eighth and following years of grant
administration.
(2) Reduced match rate.--A State that meets the
requirements under subsection (b) may provide matching funds
from non-Federal sources at a reduced rate. The full reduced
matching funds rate shall be in an amount equal to--
(A) 5 percent of the Federal funds provided under
the grant in the first year of grant administration;
(B) 5 percent of the Federal funds provided under
the grant in the second year of grant administration;
(C) 10 percent of the Federal funds provided under
the grant in the third year of grant administration;
(D) 20 percent of the Federal funds provided under
the grant in the fourth year of grant administration;
(E) 30 percent of the Federal funds provided under
the grant in the fifth year of grant administration;
(F) 40 percent of the Federal funds provided under
the grant in the sixth year of grant administration;
(G) 50 percent of the Federal funds provided under
the grant in the seventh year of grant administration;
(H) 75 percent of the Federal funds provided under
the grant in the eighth year of grant administration;
and
(I) 100 percent of the Federal funds provided under
the grant in the ninth and following years of the grant
administration.
(b) Reduced Match Rate Eligibility.--A State that receives a grant
under this subtitle may provide matching funds from non-Federal sources
at the full reduced rate under subsection (a)(2) if the State--
(1)(A) offers enrollment in high-quality prekindergarten
programs to not less than half of children in the State who
are--
(i) age 4 on the eligibility determination date;
and
(ii) from families with incomes at or below 200
percent of the poverty line; and
(B) has a plan for continuing to expand access to high-
quality prekindergarten programs for such children in the
State; and
(2) has a plan to expand access to high-quality
prekindergarten programs to children from moderate income
families whose income exceeds 200 percent of the poverty line.
(c) Non-Federal Resources.--
(1) In cash.--A State shall provide the matching funds
under this section in cash.
(2) Funds to be considered as matching funds.--A State may
include, as part of the State's matching funds under this
section, not more than 10 percent of the amount of State funds
designated for State prekindergarten programs or to supplement
Head Start programs under the Head Start Act (42 U.S.C. 9831 et
seq.) as of the date of enactment of this Act, but may not
include any funds that are attributed as matching funds, as
part of a non-Federal share, or as a maintenance of effort
requirement, for any other Federal program.
(d) Maintenance of Effort.--
(1) In general.--If a State reduces its combined fiscal
effort per student or the aggregate expenditures within the
State to support early childhood education programs for any
fiscal year that a State receives a grant authorized under this
subtitle relative to the previous fiscal year, the Secretary
shall reduce support for such State under this subtitle by the
same amount as the decline in State and local effort for such
fiscal year.
(2) Waiver.--The Secretary may waive the requirements of
paragraph (1) if--
(A) the Secretary determines that a waiver would be
appropriate due to a precipitous decline in the
financial resources of a State as a result of
unforeseen economic hardship or a natural disaster that
has necessitated across-the-board reductions in State
services, including early childhood education programs;
or
(B) due to the circumstances of a State requiring
reductions in specific programs, including early
childhood education, if the State presents to the
Secretary a justification and demonstration why other
programs could not be reduced and how early childhood
programs in the State will not be disproportionately
harmed by such State action.
(e) Supplement Not Supplant.--Grant funds received under this title
shall be used to supplement and not supplant other Federal, State, and
local public funds expended on public prekindergarten programs in the
State.
SEC. 121. ELIGIBLE LOCAL ENTITY APPLICATIONS.
(a) In General.--An eligible local entity desiring to receive a
subgrant under section 117(b) shall submit an application to the State,
at such time, in such manner, and containing such information as the
State may reasonably require.
(b) Contents.--Each application submitted under subsection (a)
shall include the following:
(1) Parent and family engagement.--A description of how the
eligible local entity plans to engage the parents and families
of the children such entity serves and ensure that parents and
families of eligible children are aware of the services
provided by the eligible local entity, which shall include a
plan to--
(A) carry out meaningful parent and family
engagement, through the implementation and replication
of evidence-based or promising practices and
strategies, which shall be coordinated with parent and
family engagement strategies supported under the
Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.) and part A of title I and title V of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6311 et seq. and 7201 et seq.), if applicable,
to--
(i) provide parents and family members with
the skills and opportunities necessary to
become full partners in their children's
education, particularly the families of dual
language learners and children with
disabilities;
(ii) improve child development; and
(iii) strengthen relationships among
prekindergarten staff and parents and family
members; and
(B) perform community outreach to encourage
families with eligible children to participate in the
eligible local entity's high-quality prekindergarten
program, including--
(i) homeless children;
(ii) dual language learners;
(iii) children in foster care;
(iv) children with disabilities; and
(v) migrant children.
(2) Coordination and alignment.--A description of how the
eligible local entity will--
(A) coordinate, if applicable, the eligible local
entity's activities with--
(i) Head Start agencies (consistent with
section 642(e)(5) of the Head Start Act (42
U.S.C. 9837(e)(5)), if the local entity is not
a Head Start agency;
(ii) local educational agencies, if the
eligible local entity is not a local
educational agency;
(iii) providers of services under part C of
the Individuals with Disabilities Education Act
(20 U.S.C. 1431 et seq.);
(iv) programs carried out under section 619
of the Individuals with Disabilities Education
Act (20 U.S.C. 1419); and
(v) if feasible, other entities carrying
out early childhood education programs and
services within the area served by the local
educational agency.
(B) if applicable, develop and implement a
systematic procedure for transferring, with parental
consent, early childhood education program records for
each participating child to the school in which such
child will enroll in kindergarten;
(C) develop a plan to promote continuity of
developmentally appropriate instructional programs and
shared expectations with local elementary schools for
children's learning and development as children
transition to kindergarten;
(D) organize, if feasible, and participate in joint
training, when available, including transition-related
training for school staff and early childhood education
program staff;
(E) establish comprehensive transition policies and
procedures, with applicable elementary schools and
principals, for the children served by the eligible
local entity that support the school readiness of
children transitioning to kindergarten;
(F) conduct outreach to parents, families, and
elementary school teachers and principals to discuss
the educational, developmental, and other needs of
children entering kindergarten;
(G) help parents, including parents of children who
are dual language learners, understand and engage with
the instructional and other services provided by the
kindergarten in which such child will enroll after
participation in a high-quality prekindergarten
program; and
(H) develop and implement a system to increase
program participation of underserved populations of
eligible children, especially homeless children,
children eligible for a free or reduced-price lunch
under the Richard B. Russell National School Lunch Act
(42 U.S.C. 1751 et seq.), parents of children who are
dual language learners, and parents of children with
disabilities.
(3) Protections for special populations.--A description of
how the eligible local entity will meet the diverse needs of
children in the community to be served, including children with
disabilities, children whose native language is not English,
children with other special needs, children in the State foster
care system, and homeless children. Such description shall
demonstrate, at a minimum, how the entity plans to--
(A) ensure the eligible local entity's high-quality
prekindergarten program is accessible and appropriate
for children with disabilities and dual language
learners;
(B) establish effective procedures for providing
necessary early intervening services to children with
disabilities prior to an eligibility determination by
the State or local agency responsible for providing
services under section 619 or part C of the Individuals
with Disabilities Education Act (20 U.S.C. 1419 and
1431 et seq.);
(C) establish effective procedures for timely
referral of children with disabilities to the State or
local agency described in subparagraph (B);
(D) ensure that the eligible local entity's high-
quality prekindergarten program works with appropriate
entities to address the elimination of barriers to
immediate and continuous enrollment for homeless
children; and
(E) ensure access to and continuity of enrollment
in high-quality prekindergarten programs for migratory
children, if applicable, and homeless children,
including through policies and procedures that
require--
(i) outreach to identify migratory children
and homeless children;
(ii) immediate enrollment, including
enrollment during the period of time when
documents typically required for enrollment,
including health and immunization records,
proof of eligibility, and other documents, are
obtained;
(iii) continuous enrollment and
participation in the same high-quality
prekindergarten program for a child, even if
the child moves out of the program's service
area, if that enrollment and participation are
in the child's best interest, including by
providing transportation when necessary;
(iv) professional development for high-
quality prekindergarten program staff regarding
migratory children and homelessness among
families with young children; and
(v) in serving homeless children,
collaboration with local educational agency
liaisons designated under section
722(g)(1)(J)(ii) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)),
and local homeless service providers.
(4) Accessible comprehensive services.--A description of
how the eligible local entity plans to provide accessible
comprehensive services, described in section 112(9)(I), to the
children the eligible local entity serves. Such description
shall provide information on how the entity will--
(A) conduct a data-driven community assessment in
coordination with members of the community, including
parents and community organizations, or use a recently
conducted data-driven assessment, which--
(i) may involve an external partner with
expertise in conducting such needs analysis, to
determine the most appropriate social or other
support services to offer through the eligible
local entity's on-site comprehensive services
to children who participate in high-quality
prekindergarten programs; and
(ii) shall consider the resources available
at the school, local educational agency, and
community levels to address the needs of the
community and improve child outcomes; and
(B) have a coordinated system to facilitate the
screening, referral, and provision of services related
to health, nutrition, mental health, disability, and
family support for children served by the eligible
local entity.
(5) Workforce.--A description of how the eligible local
entity plans to support the instructional staff of such
entity's high-quality prekindergarten program, which shall, at
a minimum, include a plan to provide high-quality professional
development, or facilitate the provision of high-quality
professional development through an external partner with
expertise and a demonstrated track record of success, based on
scientifically valid research, that will improve the knowledge
and skills of high-quality prekindergarten teachers and staff
through activities, which may include--
(A) acquiring content knowledge and learning
teaching strategies needed to provide effective
instruction that addresses the State's early learning
and development standards described under section
115(1);
(B) enabling high-quality prekindergarten teachers
and staff to pursue specialized training in early
childhood development;
(C) enabling high-quality prekindergarten teachers
and staff to acquire the knowledge and skills to
provide instruction and appropriate language and
support services to increase the English language
skills of dual language learners;
(D) enabling high-quality prekindergarten teachers
and staff to acquire the knowledge and skills to
provide developmentally appropriate instruction for
children with disabilities;
(E) promoting classroom management;
(F) providing high-quality induction and support
for incoming high-quality prekindergarten teachers and
staff in high-quality prekindergarten programs,
including through the use of mentoring programs that
have a demonstrated track record of success;
(G) promoting the acquisition of relevant
credentials, including in ways that support career
advancement through career ladders; and
(H) enabling high-quality prekindergarten teachers
and staff to acquire the knowledge and skills to
provide culturally competent instruction for children
from diverse backgrounds.
SEC. 122. REQUIRED SUBGRANT ACTIVITIES.
(a) In General.--An eligible local entity that receives a subgrant
under section 117(b) shall use subgrant funds to implement the elements
of a high-quality prekindergarten program for the children described in
section 117(b).
(b) Coordination.--
(1) Local educational agency partnerships with local early
childhood education programs.--A local educational agency that
receives a subgrant under this subtitle shall provide an
assurance that the local educational agency will enter into
strong partnerships with local early childhood education
programs, including programs supported through the Head Start
Act (42 U.S.C. 9831 et seq.).
(2) Eligible local entities that are not local educational
agencies.--An eligible local entity that is not a local
educational agency that receives a subgrant under this subtitle
shall provide an assurance that such entity will enter into
strong partnerships with local educational agencies.
SEC. 123. REPORT AND EVALUATION.
(a) In General.--Each State that receives a grant under this
subtitle shall prepare an annual report, in such manner and containing
such information as the Secretary may reasonably require.
(b) Contents.--A report prepared under subsection (a) shall
contain, at a minimum--
(1) a description of the manner in which the State has used
the funds made available through the grant and a report of the
expenditures made with the funds;
(2) a summary of the State's progress toward providing
access to high-quality prekindergarten programs for children
eligible for such services, as determined by the State, from
families with incomes at or below 200 percent of the poverty
line, including the percentage of funds spent on children from
families with incomes--
(A) at or below 100 percent of the poverty line;
(B) at or below between 101 and 150 percent of the
poverty line; and
(C) at or below between 151 and 200 percent of the
poverty line;
(3) an evaluation of the State's progress toward achieving
the State's performance targets, described in section 119;
(4) data on the number of high-quality prekindergarten
program teachers and staff in the State (including teacher
turnover rates and teacher compensation levels compared to
teachers in elementary schools and secondary schools),
according to the setting in which such teachers and staff work
(which settings shall include, at a minimum, Head Start
programs, public prekindergarten, and child care programs) who
received training or education during the period of the grant
and remained in the early childhood education program field;
(5) data on the kindergarten readiness of children in the
State;
(6) a description of the State's progress in overcoming
barriers to the effective use of Federal, State, and local
public funds and private funds, for early childhood education;
(7) the number and percentage of children in the State
participating in high-quality prekindergarten programs,
disaggregated by race, ethnicity, family income, child age,
disability, whether the children are homeless children, and
whether the children are dual language learners;
(8) data on the availability, affordability, and quality of
infant and toddler care in the State;
(9) the number of operational minutes per week and per year
for each eligible local entity that receives a subgrant;
(10) the local educational agency and ZIP code in which
each eligible local entity that receives a subgrant operates;
(11) information, for each of the local educational
agencies described in paragraph (10), on the percentage of the
costs of the public early childhood education programs that is
funded from Federal, from State, and from local sources,
including the percentages from specific funding programs;
(12) data on the number and percentage of children in the
State participating in public kindergarten programs,
disaggregated by race, family income, child age, disability,
whether the children are homeless children, and whether the
children are dual language learners, with information on
whether such programs are offered--
(A) for a full-day; and
(B) at no cost to families; and
(13) data on the number of individuals in the State who are
supported with scholarships, if applicable, to meet the
baccalaureate degree requirement for high-quality
prekindergarten programs, as defined in section 112.
(c) Submission.--A State shall submit the annual report prepared
under subsection (a), at the end of each fiscal year, to the Secretary,
the Secretary of Health and Human Services, and the State Advisory
Council on Early Childhood Education and Care.
(d) Cooperation.--An eligible local entity that receives a subgrant
under this subtitle shall cooperate with all Federal and State efforts
to evaluate the effectiveness of the program the entity implements with
subgrant funds.
(e) National Report.--The Secretary shall compile and summarize the
annual State reports described under subsection (c) and shall prepare
and submit an annual report to Congress that includes a summary of such
State reports.
SEC. 124. PROHIBITION OF REQUIRED PARTICIPATION OR USE OF FUNDS FOR
ASSESSMENTS.
(a) Prohibition on Required Participation.--A State receiving a
grant under this subtitle shall not require any child to participate in
any Federal, State, local, or private early childhood education
program, including a high-quality prekindergarten program.
(b) Prohibition on Use of Funds for Assessment.--A State receiving
a grant under this subtitle and an eligible local entity receiving a
subgrant under this subtitle shall not use any grant or subgrant funds
to carry out any of the following activities:
(1) An assessment that provides rewards or sanctions for
individual children, teachers, or principals.
(2) An assessment that is used as the primary or sole
method for assessing program effectiveness.
(3) Evaluating children, other than for the purposes of--
(A) improving instruction or the classroom
environment;
(B) targeting professional development;
(C) determining the need for health, mental health,
disability, or family support services;
(D) program evaluation for the purposes of program
improvement and parent information; and
(E) improving parent and family engagement.
SEC. 125. COORDINATION WITH HEAD START PROGRAMS.
(a) Increased Access for Younger Children.--Not later than 1 year
after the date of enactment of this Act, the Secretary and the
Secretary of Health and Human Services shall develop a process--
(1) for use in the event that Head Start programs funded
under the Head Start Act (42 U.S.C. 9831 et seq.) operate in
States or regions that have achieved sustained universal,
voluntary access to 4-year-old children who reside within the
State and who are from families with incomes at or below 200
percent of the poverty line to high-quality prekindergarten
programs; and
(2) for how such Head Start programs will begin converting
slots for children who are age 4 on the eligibility
determination date to children who are age 3 on the eligibility
determination date, or, when appropriate, converting Head Start
Programs into Early Head Start programs to serve infants and
toddlers.
(b) Community Need and Resources.--The process described in
subsection (a) shall--
(1) be carried out on a case-by-case basis and shall ensure
that sufficient resources and time are allocated for the
development of such a process so that no child or cohort is
excluded from currently available services; and
(2) ensure that any conversion shall be based on community
need and not on the aggregate number of children served in a
State or region that has achieved sustained, universal,
voluntary access to high-quality prekindergarten programs.
(c) Public Comment and Notice.--Not fewer than 90 days after the
development of the proposed process described in subsection (a), the
Secretary and the Secretary of Health and Human Services shall publish
a notice describing such proposed process for conversion in the Federal
Register providing at least 90 days for public comment. The Secretaries
shall review and consider public comments prior to finalizing the
process for conversion of Head Start slots and programs.
(d) Reports to Congress.--Concurrently with publishing a notice in
the Federal Register as described in subsection (c), the Secretaries
shall provide a report to the Committee on Education and the Workforce
of the House of Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate that provides a detailed description
of the proposed process described in subsection (a), including a
description of the degree to which Head Start programs are providing
State-funded high-quality prekindergarten programs as a result of the
grant opportunity provided under this subtitle in States where Head
Start programs are eligible for conversion described in subsection (a).
SEC. 126. TECHNICAL ASSISTANCE IN PROGRAM ADMINISTRATION.
In providing technical assistance to carry out activities under
this title, the Secretary shall coordinate that technical assistance,
in appropriate cases, with technical assistance provided by the
Secretary of Health and Human Services to carry out the programs
authorized under the Head Start Act (42 U.S.C. 9831 et seq.), the Child
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.),
and the maternal, infant and early childhood home visiting programs
assisted under section 511 of the Social Security Act (42 U.S.C. 711).
SEC. 127. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
subtitle--
(1) $1,300,000,000 for fiscal year 2015;
(2) $3,250,000,000 for fiscal year 2016;
(3) $5,780,000,000 for fiscal year 2017;
(4) $7,580,000,000 for fiscal year 2018;
(5) $8,960,000,000 for fiscal year 2019; and
(6) such sums as may be necessary for each of fiscal years
2020 through 2024.
Subtitle B--Prekindergarten Development Grants
SEC. 151. PREKINDERGARTEN DEVELOPMENT GRANTS.
(a) In General.--From the amounts appropriated under subsection
(f), the Secretary of Education, in consultation with the Secretary of
Health and Human Services, shall award competitive grants to States
that wish to increase the capacity and build the infrastructure within
the State to offer high-quality prekindergarten programs.
(b) Eligibility.--A State that is not receiving funds under section
115 may compete for grant funds under this subtitle if the State
provides an assurance that the State will, through the support of grant
funds awarded under this subtitle, meet the eligibility requirements of
section 115 not later than 3 years after the date the State first
receives grant funds under this subtitle.
(c) Grants.--
(1) Duration.--The Secretary shall award grants to States
under this subtitle for a period of not more than 3 years and
such grants shall not be renewed.
(2) Authority to subgrant.--
(A) In general.--A State receiving a grant under
this subtitle may use the grant funds to make subgrants
to eligible local entities (defined in section 112(7))
to carry out activities under the grant.
(B) Eligible local entities.--An eligible local
entity receiving a subgrant under subparagraph (A)
shall comply with the requirements for States receiving
a grant under this subtitle, as appropriate.
(d) Application.--
(1) In general.--A Governor of a State that desires to
receive a grant under this subtitle shall submit an application
to the Secretary of Education at such time, in such manner, and
accompanied by such information as the Secretary may reasonably
require, including a description of how the State plans to
become eligible for grants under section 115 by not later than
3 years after the date the State first receives grant funds
under this subtitle.
(2) Development of application.--In developing an
application for a grant under this subtitle, a Governor of a
State shall consult with the State Advisory Council on Early
Childhood Education and Care, and incorporate their
recommendations, where applicable.
(e) Matching Requirement.--
(1) In general.--To be eligible to receive a grant under
this subtitle, a State shall contribute for the activities for
which the grant was awarded non-Federal matching funds in an
amount equal to not less than 20 percent of the amount of the
grant.
(2) Non-federal funds.--To satisfy the requirement of
paragraph (1), a State may use--
(A) cash; or
(B) an in-kind contribution.
(3) Financial hardship waiver.--The Secretary may waive
paragraph (1) or reduce the amount of matching funds required
under that paragraph for a State that has submitted an
application for a grant under this subtitle if the State
demonstrates, in the application, a need for such a waiver or
reduction due to extreme financial hardship, as determined by
the Secretary of Education.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this subtitle--
(1) $750,000,000 for fiscal year 2015; and
(2) such sums as may be necessary for each of fiscal years
2016 through 2024.
TITLE II--RESTORING SUMMER PELL GRANTS
SEC. 201. FEDERAL PELL GRANTS.
Section 401(b) of the Higher Education Act of 1965 (20 U.S.C.
1070a) is amended--
(1) by redesignating paragraphs (5) through (7) as
paragraphs (6) through (8), respectively;
(2) in paragraph (2)(A)(ii), by striking ``paragraph
(7)(B)'' and inserting ``paragraph (8)(B)''; and
(3) by inserting after paragraph (4), the following:
``(5)(A) The Secretary shall award a student not more than
two Federal Pell Grants during a single award year to permit
such student to accelerate the student's progress toward a
degree or certificate if the student is enrolled--
``(i) on at least a half-time basis for a period of
more than one academic year, or more than two semesters
or an equivalent period of time, during a single award
year; and
``(ii) in a program of instruction at an
institution of higher education for which the
institution awards an associate or baccalaureate degree
or a certificate.
``(B) In the case of a student receiving more than one
Federal Pell Grant in a single award year under subparagraph
(A), the total amount of Federal Pell Grants awarded to such
student for the award year may exceed the maximum basic grant
level specified in the appropriate appropriations Act for such
award year.''.
TITLE III--RESTORING TITLE IV ABILITY-TO-BENEFIT ELIGIBILITY
SEC. 301. ABILITY-TO-BENEFIT ELIGIBILITY.
Section 484(d) of the Higher Education Act of 1965 (20 U.S.C.
1091(d)) is amended to read as follows:
``(d) Students Who Are Not High School Graduates.--In order for a
student who does not have a certificate of graduation from a school
providing secondary education, or the recognized equivalent of such
certificate, to be eligible for any assistance under subparts 1, 3, and
4 of part A and parts B, C, D, and E of this title, the student shall
meet one of the following standards:
``(1) The student shall take an independently administered
examination and shall achieve a score, specified by the
Secretary, demonstrating that such student can benefit from the
education or training being offered. Such examination shall be
approved by the Secretary on the basis of compliance with such
standards for development, administration, and scoring as the
Secretary may prescribe in regulations.
``(2) The student shall be determined as having the ability
to benefit from the education or training in accordance with
such process as the State shall prescribe. Any such process
described or approved by a State for the purposes of this
section shall be effective 6 months after the date of
submission to the Secretary unless the Secretary disapproves
such process. In determining whether to approve or disapprove
such process, the Secretary shall take into account the
effectiveness of such process in enabling students without high
school diplomas or the equivalent thereof to benefit from the
instruction offered by institutions utilizing such process, and
shall also take into account the cultural diversity, economic
circumstances, and educational preparation of the populations
served by the institutions.
``(3) The student has completed a secondary school
education in a home school setting that is treated as a home
school or private school under State law.
``(4) The student shall be determined by the institution of
higher education as having the ability to benefit from the
education or training offered by the institution of higher
education upon satisfactory completion of six credit hours or
the equivalent coursework that are applicable toward a degree
or certificate offered by the institution of higher
education.''.
TITLE IV--YOUTH PROMISE/FEDERAL COORDINATION OF LOCAL AND TRIBAL
JUVENILE JUSTICE INFORMATION AND EFFORTS
SEC. 401. PROMISE ADVISORY PANEL.
(a) Organization of State Advisory Group Member Representatives.--
Section 223(f) of the Juvenile Justice and Delinquency Prevention Act
of 1974 (42 U.S.C. 5633(f)) is amended--
(1) in paragraph (1), by striking ``an eligible
organization composed of member representatives of the State
advisory groups appointed under subsection (a)(3)'' and
inserting ``a nonpartisan, nonprofit organization that is
described in section 501(c)(3) of the Internal Revenue Code of
1986,''; and
(2) by amending paragraph (2) to read as follows:
``(2) Assistance.--To be eligible to receive such
assistance, such organization shall--
``(A) be governed by individuals who--
``(i) have been appointed by a chief
executive of a State to serve as a State
advisory group member under subsection (a)(3);
and
``(ii) are elected to serve as a governing
officer of such organization by a majority of
the Chairs (or Chair-designees) of all such
State advisory groups;
``(B) include member representatives from a
majority of such State advisory groups, who shall be
representative of regionally and demographically
diverse States and jurisdictions;
``(C) annually seek appointments by the chief
executive of each State of one State advisory group
member and one alternate State advisory group member
from each such State to implement the advisory
functions specified in clauses (iv) and (v) of
subparagraph (D), including serving on the PROMISE
Advisory Panel, and make a record of any such
appointments available to the public; and
``(D) agree to carry out activities that include--
``(i) conducting an annual conference of
such member representatives for purposes
relating to the activities of such State
advisory groups;
``(ii) disseminating information, data,
standards, advanced techniques, and program
models;
``(iii) reviewing Federal policies
regarding juvenile justice and delinquency
prevention;
``(iv) advising the Administrator with
respect to particular functions or aspects of
the work of the Office, and appointing a
representative, diverse group of members of
such organization under subparagraph (C) to
serve as an advisory panel of State juvenile
justice advisors (referred to as the `PROMISE
Advisory Panel') to carry out the functions
specified in subsection (g); and
``(v) advising the President and Congress
with regard to State perspectives on the
operation of the Office and Federal legislation
pertaining to juvenile justice and delinquency
prevention.''.
(b) PROMISE Advisory Panel.--Section 223 of the Juvenile Justice
and Delinquency Prevention Act of 1974 (42 U.S.C. 5633) is further
amended by adding at the end the following new subsection:
``(g) PROMISE Advisory Panel.--
``(1) Functions.--The PROMISE Advisory Panel required under
subsection (f)(2)(D) shall--
``(A) assess successful evidence-based and
promising practices related to juvenile delinquency and
criminal street gang activity prevention and
intervention carried out by PROMISE Coordinating
Councils under section 511 of title V of division A of
the Pathways Out of Poverty Act of 2014;
``(B) provide the Administrator with a list of
individuals and organizations with experience in
administering or evaluating practices that serve youth
involved in, or at risk of involvement in, juvenile
delinquency and criminal street gang activity, from
which the Administrator shall select individuals who
shall--
``(i) provide to the Administrator peer
reviews of applications submitted by units of
local government and Indian tribes pursuant to
title V of division A of the Pathways Out of
Poverty Act of 2014, to ensure that such
applications demonstrate a clear plan to--
``(I) serve youth as part of an
entire family unit; and
``(II) coordinate the delivery of
service to youth among agencies; and
``(ii) advise the Administrator with
respect to the award and allocation of PROMISE
Planning grants to local and tribal governments
that develop PROMISE Coordinating Councils, and
of PROMISE Implementation grants to such
PROMISE Coordinating Councils, pursuant to of
title V of division A of the Pathways Out of
Poverty Act of 2014; and
``(C) develop performance standards to be used to
evaluate programs and activities carried out with
grants under of title V of division A of thePathways
Out of Poverty Act of 2014, including the evaluation of
changes achieved as a result of such programs and
activities related to decreases in juvenile delinquency
and criminal street gang activity, including--
``(i) prevention of involvement by at-risk
youth in juvenile delinquency or criminal
street gang activity;
``(ii) diversion of youth with a high risk
of continuing involvement in juvenile
delinquency or criminal street gang activity;
and
``(iii) financial savings from deferred or
eliminated costs, or other benefits, as a
result of such programs and activities, and the
reinvestment by the unit or tribe of any such
savings.
``(2) Annual report.--Not later than 18 months after the
date of the effective date of this subsection, and annually
thereafter, the PROMISE Advisory Panel shall prepare a report
containing the findings and determinations under paragraph
(1)(A) and shall submit such report to Congress, the President,
the Attorney General, and the chief executive and chief law
enforcement officer of each State, unit of local government,
and Indian tribe.''.
(c) Authorization of Appropriations.--Section 299(a)(1) of the
Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C.
5671(a)(1)) is amended to read as follows:
``(1) There are authorized to be appropriated such sums as
may be necessary to carry out this title for each of the fiscal
years 2015 through 2017.''.
SEC. 402. GEOGRAPHIC ASSESSMENT OF RESOURCE ALLOCATION.
(a) Grant for Collection of Data To Determine Need.--Subject to the
availability of appropriations, the Administrator of the Office of
Juvenile Justice and Delinquency Prevention shall award a grant, on a
competitive basis, to an organization to--
(1) collect and analyze data related to the existing
juvenile delinquency and criminal street gang activity
prevention and intervention needs and resources in each
designated geographic area;
(2) use the data collected and analyzed under paragraph (1)
to compile a list of designated geographic areas that have the
most need of resources, based on such data, to carry out
juvenile delinquency and criminal street gang activity
prevention and intervention;
(3) use the data collected and analyzed under paragraph (1)
to rank the areas listed under paragraph (2) in descending
order by the amount of need for resources to carry out juvenile
delinquency and criminal street gang activity prevention and
intervention, ranking the area with the greatest need for such
resources highest; and
(4) periodically update the list and rankings under
paragraph (3) as the Administrator determines to be
appropriate.
(b) Data Sources.--In compiling such list and determining such
rankings, the organization shall collect and analyze data relating to
juvenile delinquency and criminal street gang activity prevention and
intervention--
(1) using the geographic information system and Web-based
mapping application known as the Socioeconomic Mapping and
Resource Topography (SMART) system;
(2) from the Department of Health and Human Services, the
Department of Labor, the Department of Housing and Urban
Development, and the Department of Education; and
(3) from the annual KIDS Count Data Book and other data
made available by the KIDS Count initiative of the Annie E.
Casey Foundation.
(c) Use of Data by the Administrator.--The list and rankings
required by this section shall be provided to the Administrator to be
used to provide funds under this section in the most strategic and
effective manner to ensure that resources and services are provided to
youth in the communities with the greatest need for such resources and
services.
(d) Limitation on Use of Collected Data.--The information collected
and analyzed under this section may not be used for any purpose other
than to carry out the purposes of this section. Such information may
not be used for any purpose related to the investigation or prosecution
of any person, or for profiling of individuals based on race,
ethnicity, socio-economic status, or any other characteristic.
(e) Authorization and Limitation of Appropriations.--Of the amount
appropriated for fiscal year 2015 to carry out this section and
subtitle A of title V of this Act, not more than 1 percent of such
amount, or $1,000,000, whichever is less, shall be available to carry
out this section.
TITLE V--PROMISE GRANTS
SEC. 501. PURPOSES.
The purposes of the grant programs established under this title are
to--
(1) enable local and tribal communities to assess the unmet
needs of youth who are involved in, or are at risk of
involvement in, juvenile delinquency or criminal street gangs;
(2) develop plans appropriate for a community to address
those unmet needs with juvenile delinquency and gang prevention
and intervention practices; and
(3) implement and evaluate such plans in a manner
consistent with this title.
SEC. 502. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Office of Juvenile Justice and Delinquency
Prevention.
(2) Community.--The term ``community'' means a unit of
local government or an Indian tribe, or part of such a unit or
tribe, as determined by such a unit or tribe for the purpose of
applying for a grant under this title.
(3) Designated geographic area.--The term ``designated
geographic area'' means a 5-digit postal ZIP Code assigned to a
geographic area by the United States Postal Service.
(4) Evidence-based.--
(A) In general.--The term ``evidence-based'', when
used with respect to a practice relating to juvenile
delinquency and criminal street gang activity
prevention and intervention, means a practice
(including a service, program, activity, intervention,
technology, or strategy) for which the Administrator
has determined--
(i) causal evidence documents a
relationship between the practice and its
intended outcome, based on measures of the
direction and size of a change, and the extent
to which a change may be attributed to the
practice; and
(ii) the use of scientific methods rules
out, to the extent possible, alternative
explanations for the documented change.
(B) Scientific methods.--For the purposes of
subparagraph (A), the term ``scientific methods''
means--
(i) evaluation by an experimental trial, in
which participants are randomly assigned to
participate in the practice that is subject to
such trial; or
(ii) evaluation by a quasi-experimental
trial, in which the outcomes for participants
are compared with outcomes for a control group
that is made up of individuals who are similar
to such participants.
(5) Intervention.--The term ``intervention'' means the
provision of programs and services that are supported by
research, are evidence-based or promising practices, and are
provided to youth who are involved in, or who are identified by
evidence-based risk assessment methods as being at high risk of
continued involvement in, juvenile delinquency or criminal
street gangs, as a result of indications that demonstrate
involvement with problems such as truancy, substance abuse,
mental health treatment needs, or siblings who have had
involvement with juvenile or criminal justice systems.
(6) Juvenile delinquency and criminal street gang activity
prevention.--The term ``juvenile delinquency and criminal
street gang activity prevention'' means the provision of
programs and resources to children and families who have not
yet had substantial contact with criminal justice or juvenile
justice systems, that--
(A) are designed to reduce potential juvenile
delinquency and criminal street gang activity risks;
and
(B) are evidence-based or promising educational,
health, mental health, school-based, community-based,
faith-based, parenting, job training, social
opportunities and experiences, or other programs, for
youth and their families, that have been demonstrated
to be effective in reducing juvenile delinquency and
criminal street gang activity risks.
(7) Promising.--The term ``promising'', when used with
respect to a practice relating to juvenile delinquency and
criminal street gang activity prevention and intervention,
means a practice (including a service, program, activity,
intervention, technology, or strategy) that, based on
statistical analyses or a theory of change, the Administrator
has determined--
(A) has outcomes from an evaluation that
demonstrate such practice reduces juvenile delinquency
and criminal street gang activity; and
(B) is part of a study being conducted to determine
if such a practice is evidence-based.
(8) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, American Samoa, Guam, the Northern
Mariana Islands, and any other territories or possessions of
the United States.
(9) Theory of change.--The term ``theory of change'' means
a program planning strategy approved by the Administrator that
outlines the types of interventions and outcomes essential to
achieving a set of program goals.
(10) Youth.--The term ``youth'' means--
(A) an individual who is 18 years of age or
younger; or
(B) in any State in which the maximum age at which
the juvenile justice system of such State has
jurisdiction over individuals exceeds 18 years of age,
an individual who is such maximum age or younger.
Subtitle A--PROMISE Assessment and Planning Grants
SEC. 510. PROMISE ASSESSMENT AND PLANNING GRANTS AUTHORIZED.
(a) Grants Authorized.--The Administrator is authorized to award
grants to units of local government and Indian tribes to assist PROMISE
Coordinating Councils with planning and assessing evidence-based and
promising practices relating to juvenile delinquency and criminal
street gang activity prevention and intervention, especially for youth
who are involved in, or who are at risk of involvement in, juvenile
delinquency and criminal street gang activity. Such PROMISE
Coordinating Councils shall--
(1) conduct an objective needs and strengths assessment in
accordance with section 512; and
(2) develop a PROMISE Plan in accordance with section 513,
based on the assessment conducted in accordance with section
512.
(b) Grant Duration, Amount, and Allocation.--
(1) Duration.--A grant awarded under this section shall be
for a period not to exceed one year.
(2) Maximum grant amount.--A grant awarded under this
section shall not exceed $300,000.
(c) Allocation.--
(1) Minimum allocation.--Subject to the availability of
appropriations, the Administrator shall ensure that the total
funds allocated under this section to units of local
governments and Indian tribes in a State shall not be less than
$1,000,000.
(2) Ratable reduction.--If the amount made available for
grants under this section for any fiscal year is less than the
amount required to provide the minimum allocation of funds
under paragraph (1) to units of local government and Indian
tribes in each State, then the amount of such minimum
allocation shall be ratably reduced.
SEC. 511. PROMISE COORDINATING COUNCILS.
To be eligible to receive a grant under this subtitle, a unit of
local government or an Indian tribe shall establish a PROMISE
Coordinating Council for each community of such unit or tribe,
respectively, for which such unit or tribe is applying for a grant
under this subtitle. Each such community shall include one or more
designated geographic areas identified on the list required under
section 402(a)(2). The members of such a PROMISE Coordinating Council
shall be representatives of public and private sector entities and
individuals that--
(1) shall include, to the extent possible, at least one
representative from each of the following:
(A) the local chief executive's office;
(B) a local educational agency;
(C) a local health agency or provider;
(D) a local mental health agency or provider,
unless the representative under subparagraph (C) also
meets the requirements of this subparagraph;
(E) a local public housing agency;
(F) a local law enforcement agency;
(G) a local child welfare agency;
(H) a local juvenile court;
(I) a local juvenile prosecutor's office;
(J) a private juvenile residential care entity;
(K) a local juvenile public defender's office;
(L) a State juvenile correctional entity;
(M) a local business community representative; and
(N) a local faith-based community representative;
(2) shall include two representatives from each of the
following:
(A) parents who have minor children, and who have
an interest in the local juvenile or criminal justice
systems;
(B) youth between the ages of 15 and 24 who reside
in the jurisdiction of the unit or tribe; and
(C) members from nonprofit community-based
organizations that provide effective delinquency
prevention and intervention to youth in the
jurisdiction of the unit or tribe; and
(3) may include other members, as the unit or tribe
determines to be appropriate.
SEC. 512. NEEDS AND STRENGTHS ASSESSMENT.
(a) Assessment.--Each PROMISE Coordinating Council receiving funds
from a unit of local government or Indian tribe under this subtitle
shall conduct an objective strengths and needs assessment of the
resources of the community for which such PROMISE Coordinating Council
was established, to identify the unmet needs of youth in the community
with respect to evidence-based and promising practices related to
juvenile delinquency and criminal street gang activity prevention and
intervention. Such assessment shall include, with respect to the
community for which such PROMISE Coordinating Council was established--
(1) the number of youth who are at-risk of involvement in
juvenile delinquency or street gang activity;
(2) the number of youth who are involved in juvenile
delinquency or criminal street gang activity, including the
number of such youth who are at high risk of continued
involvement;
(3) youth unemployment rates during the summer;
(4) the number of individuals on public financial
assistance (including a breakdown of the numbers of men, women,
and children on such assistance);
(5) the estimated number of youth who are chronically
truant;
(6) the number of youth who have dropped out of school in
the previous year;
(7) for the year before such assessment, the estimated
total amount expended (by the community and other entities) for
the incarceration of offenders who were convicted or
adjudicated delinquent for an offense that was committed in
such community, including amounts expended for the
incarceration of offenders in prisons, jails, and juvenile
facilities that are located in the United States but are not
located in such community;
(8) a comparison of the amount under paragraph (7) with an
estimation of the amount that would be expended for the
incarceration of offenders described in such paragraph if the
number of offenders described in such paragraph was equal to
the national average incarceration rate per 100,000 population;
and
(9) a description of evidence-based and promising practices
related to juvenile delinquency and criminal street gang
activity prevention available for youth in the community,
including school-based programs, after school programs
(particularly programs that have activities available for youth
between 3 p.m. and 6 p.m. in the afternoon), weekend activities
and programs, youth mentoring programs, faith and community-
based programs, summer activities, and summer jobs, if any; and
(10) a description of evidence-based and promising
intervention practices available for youth in the community.
(b) Limitation on Use of Assessment Information.--Information
gathered pursuant to this section may be used for the sole purpose of
developing a PROMISE Plan in accordance with this subtitle.
SEC. 513. PROMISE PLAN COMPONENTS.
(a) In General.--Each PROMISE Coordinating Council receiving funds
from a unit of local government or Indian tribe under this subtitle
shall develop a PROMISE Plan to provide for the coordination of, and,
as appropriate, to support the delivery of, evidence-based and
promising practices related to juvenile delinquency and criminal street
gang activity prevention and intervention to youth and families who
reside in the community for which such PROMISE Coordinating Council was
established. Such a PROMISE Plan shall--
(1) include the strategy by which the PROMISE Coordinating
Council plans to prioritize and allocate resources and services
toward the unmet needs of youth in the community, consistent
with the needs and available resources of communities with the
greatest need for assistance, as determined pursuant to section
402;
(2) include a combination of evidence-based and promising
prevention and intervention practices that are responsive to
the needs of the community; and
(3) ensure that cultural and linguistic needs of the
community are met.
(b) Mandatory Components.--Each PROMISE Plan shall--
(1) include a plan to connect youth identified in
paragraphs (1) and (2) of section 512(a) to evidence-based and
promising practices related to juvenile delinquency and
criminal street gang activity prevention and intervention;
(2) identify the amount or percentage of local funds that
are available to the PROMISE Coordinating Council to carry out
the PROMISE Plan;
(3) provide strategies to improve indigent defense delivery
systems, with particular attention given to groups of children
who are disproportionately represented in the State delinquency
system and Federal criminal justice system, as compared to the
representation of such groups in the general population of the
State;
(4) provide for training (which complies with the American
Bar Association Juvenile Justice Standards for the
representation and care of youth in the juvenile justice
system) of prosecutors, defenders, probation officers, judges
and other court personnel related to issues concerning the
developmental needs, challenges, and potential of youth in the
juvenile justice system (including training related to
adolescent development and mental health issues, and the
expected impact of evidence-based practices and cost reduction
strategies);
(5) ensure that the number of youth involved in the
juvenile delinquency and criminal justice systems does not
increase as a result of the activities undertaken with the
funds provided under this subtitle;
(6) describe the coordinated strategy that will be used by
the PROMISE Coordinating Council to provide at-risk youth with
evidence-based and promising practices related to juvenile
delinquency and criminal street gang activity prevention and
intervention;
(7) propose the performance evaluation process to be used
to carry out section 530(d), which shall include performance
measures to assess efforts to address the unmet needs of youth
in the community with evidence-based and promising practices
related to juvenile delinquency and criminal street gang
activity prevention and intervention; and
(8) identify the research partner the PROMISE Coordinating
Council will use to obtain information on evidence-based and
promising practices related to juvenile delinquency and
criminal street gang activity prevention and intervention, and
for the evaluation under section 530(d) of the results of the
activities carried out with funds under this subtitle.
(c) Voluntary Components.--In addition to the components under
subsection (b), a PROMISE Plan may include evidence-based or promising
practices related to juvenile delinquency and criminal street gang
activity prevention and intervention in the following categories:
(1) Early childhood development services (such as pre-natal
and neo-natal health services), early childhood prevention,
voluntary home visiting programs, nurse-family partnership
programs, parenting and healthy relationship skills training,
child abuse prevention programs, Early Head Start, and Head
Start.
(2) Child protection and safety services (such as foster
care and adoption assistance programs), family stabilization
programs, child welfare services, and family violence
intervention programs.
(3) Youth and adolescent development services, including
job training and apprenticeship programs, job placement and
retention training, education and after school programs (such
as school programs with shared governance by students,
teachers, and parents, and activities for youth between the
hours of 3 p.m. and 6 p.m. in the afternoon), mentoring
programs, conflict resolution skills training, sports, arts,
life skills, employment and recreation programs, summer jobs,
and summer recreation programs, and alternative school
resources for youth who have dropped out of school or
demonstrate chronic truancy.
(4) Health and mental health services, including cognitive
behavioral therapy, play therapy, and peer mentoring and
counseling.
(5) Substance abuse counseling and treatment services,
including harm-reduction strategies.
(6) Emergency, transitional, and permanent housing
assistance (such as safe shelter and housing for runaway and
homeless youth).
(7) Targeted gang prevention, intervention, and exit
services such as tattoo removal, successful models of anti-gang
crime outreach programs (such as ``street worker'' programs),
and other criminal street gang truce or peacemaking activities.
(8) Training and education programs for pregnant teens and
teen parents.
(9) Alternatives to detention and confinement programs
(such as mandated participation in community service,
restitution, counseling, and intensive individual and family
therapeutic approaches).
(10) Pre-release, post-release, and reentry services to
assist detained and incarcerated youth with transitioning back
into and reentering the community.
SEC. 514. AUTHORIZATION OF APPROPRIATIONS.
Subject to the limitation under section 402(e), there are
authorized to be appropriated for fiscal year 2015, such sums as may be
necessary to carry out this subtitle and section 402.
Subtitle B--PROMISE Implementation Grants
SEC. 530. PROMISE IMPLEMENTATION GRANTS AUTHORIZED.
(a) PROMISE Implementation Grants Authorized.--The Administrator of
the Office of Juvenile Justice and Delinquency Prevention is authorized
to award grants to units of local government and Indian tribes to
assist PROMISE Coordinating Councils with implementing PROMISE Plans
developed pursuant to subtitle A.
(b) Grant Duration and Amount.--
(1) Duration.--A grant awarded under this subtitle shall be
for a three-year period.
(2) Maximum grant amount.--A grant awarded under this
subtitle shall not be for more than $10,000,000 per year for
each year of the grant period.
(c) Non-Federal Funds Required.--For each fiscal year during the
three-year grant period for a grant under this subtitle, each unit of
local government or Indian tribe receiving such a grant for a PROMISE
Coordinating Council shall provide, from non-Federal funds, in cash or
in-kind, 25 percent of the costs of the activities carried out with
such grant.
(d) Evaluation.--Of any funds provided to a unit of local
government or an Indian tribe for a grant under this subtitle, not more
than $100,000 shall be used to provide a contract to a competitively
selected organization to assess the progress of the unit or tribe in
addressing the unmet needs of youth in the community, in accordance
with the performance measures under section 513(b)(7).
SEC. 531. PROMISE IMPLEMENTATION GRANT APPLICATION REQUIREMENTS.
(a) Application Required.--To be eligible to receive a PROMISE
Implementation grant under this subtitle, a unit of local government or
Indian tribe that received a PROMISE Assessment and Planning grant
under subtitle A shall submit an application to the Administrator of
the Office of Juvenile Justice and Delinquency Prevention not later
than one year after the date such unit of local government or Indian
tribe was awarded such grant under subtitle A, in such manner, and
accompanied by such information, as the Administrator, after
consultation with the organization under section 223(f)(1) of the
Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C.
5633(f)(1)), may require.
(b) Contents of Application.--Each application submitted under
subsection (a) shall--
(1) identify potential savings from criminal justice costs,
public assistance costs, and other costs avoided by utilizing
evidence-based and promising practices related to juvenile
delinquency and criminal street gang activity prevention and
intervention;
(2) document--
(A) investment in evidence-based and promising
practices related to juvenile delinquency and criminal
street gang activity prevention and intervention to be
provided by the unit of local government or Indian
tribe;
(B) the activities to be undertaken with the grants
funds;
(C) any expected efficiencies in the juvenile
justice or other local systems to be attained as a
result of implementation of the programs funded by the
grant; and
(D) outcomes from such activities, in terms of the
expected numbers related to reduced criminal activity;
(3) describe how savings sustained from investment in
prevention and intervention practices will be reinvested in the
continuing implementation of the PROMISE Plan; and
(4) provide an assurance that the local fiscal contribution
with respect to evidence-based and promising practices related
to juvenile delinquency and criminal street gang activity
prevention and intervention in the community for which the
PROMISE Coordinating Council was established for each year of
the grant period will not be less than the local fiscal
contribution with respect to such practices in the community
for the year preceding the first year of the grant period.
SEC. 532. GRANT AWARD GUIDELINES.
(a) Selection and Distribution.--Grants awarded under this subtitle
shall be awarded on a competitive basis. The Administrator shall--
(1) take such steps as may be necessary to ensure that
grants are awarded to units of local governments and Indian
tribes in areas with the highest concentrations of youth who
are--
(A) at-risk of involvement in juvenile delinquency
or criminal street gang activity; and
(B) involved in juvenile delinquency or street gang
activity and who are at high-risk of continued
involvement; and
(2) give consideration to the need for grants to be awarded
to units of local governments and Indian tribes in each region
of the United States, and among urban, suburban, and rural
areas.
(b) Extension of Grant Award.--The Administrator may extend the
grant period under section 530(b)(1) for a PROMISE Implementation grant
to a unit of local government or an Indian tribe, in accordance with
regulations issued by the Administrator.
(c) Renewal of Grant Award.--Subject to the availability of
appropriations, the Administrator may renew a PROMISE Implementation
grant to a unit of local government or an Indian tribe to provide such
unit or tribe with additional funds to continue implementation of a
PROMISE Plan. Such a renewal--
(1) shall be initiated by an application for renewal from a
unit of local government or an Indian tribe;
(2) shall be carried out in accordance with regulations
issued by the Administrator; and
(3) shall not be granted unless the Administrator
determines such a renewal to be appropriate based on the
results of the evaluation conducted under section 523(a) with
respect to the community of such unit or tribe for which a
PROMISE Coordinating Council was established, and for which
such unit or tribe is applying for renewal.
SEC. 533. REPORTS.
Not later than one year after the end of the grant period for which
a unit of local government or an Indian tribe receives a PROMISE
Implementation grant, and annually thereafter for as long as such unit
or tribe continues to receive Federal funding for a PROMISE
Coordinating Council, such unit or tribe shall report to the
Administrator regarding the use of Federal funds to implement the
PROMISE Plan developed under subtitle A.
SEC. 534. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this subtitle
such sums as may be necessary for each of the fiscal years 2015 through
2017.
Subtitle C--General PROMISE Grant Provisions
SEC. 540. NONSUPPLANTING CLAUSE.
A unit of local government or Indian tribe receiving a grant under
this title shall use such grant only to supplement, and not supplant,
the amount of funds that, in the absence of such grant, would be
available to address the needs of youth in the community with respect
to evidence-based and promising practices related to juvenile
delinquency and criminal street gang activity prevention and
intervention.
SEC. 541. GRANT APPLICATION REVIEW PANEL.
The Administrator of the Office of Juvenile Justice and Delinquency
Prevention, in conjunction with the PROMISE Advisory Panel, shall
establish and utilize a transparent, reliable, and valid system for
evaluating applications for PROMISE Assessment and Planning grants and
for PROMISE Implementation grants, and shall determine which applicants
meet the criteria for funding, based primarily on a determination of
greatest need (in accordance with section 402), with due consideration
to other enumerated factors and the indicated ability of the applicant
to successfully implement the program described in the application.
SEC. 542. EVALUATION OF PROMISE GRANT PROGRAMS.
Subject to the availability of appropriations under this title, the
Administrator shall, in consultation with the organization provided
assistance under section 223(f)(1) of the Juvenile Justice and
Delinquency Prevention Act of 1974 (42 U.S.C. 5633(f)(1)), provide for
an evaluation of the programs and activities carried out with grants
under this title. In carrying out this section, the Administrator
shall--
(1) award grants to institutions of higher education
(including institutions that are eligible to receive funds
under part F of title III of the Higher Education Act of 1965
(20 U.S.C. 1067q et seq.), to facilitate the evaluation process
and measurement of achieved outcomes;
(2) identify evidence-based and promising practices used by
PROMISE Coordinating Councils under PROMISE Implementation
grants that have proven to be effective in preventing
involvement in, or diverting further involvement in, juvenile
delinquency or criminal street gang activity; and
(3) ensure--
(A) that such evaluation is based on the
performance standards that are developed by the PROMISE
Advisory Panel in accordance with section 223(g) of the
Juvenile Justice and Delinquency Prevention Act of 1974
(as added by section 401(b) of title IV of this
division);
(B) the development of longitudinal and clinical
trial evaluation and performance measurements with
regard to the evidence-based and promising practices
funded under this title; and
(C) the dissemination of the practices identified
in paragraph (2) to units of local government and
Indian tribes to promote the use of such practices by
such units and tribes to prevent involvement in, or to
divert further involvement in, juvenile delinquency or
criminal street gang activity.
DIVISION B--HOUSING
TITLE VI--COMMON SENSE HOUSING INVESTMENT
SEC. 601. CONGRESSIONAL FINDINGS.
The Congress finds the following:
(1) Two principal Federal housing goals are to increase the
rate of home ownership and make rental housing affordable for
low-income families and individuals.
(2) Much more progress has been achieved on the first goal
than on the second goal.
(3) The Federal Government devotes more than three times
the amount of budgetary resources to supporting home ownership
than it devotes to making affordable rental housing available.
(4) The burden of housing costs is more pronounced among
renters than among owners.
(5) There is a shortage of more than 7 million homes
affordable to families in the bottom 20 percent of income,
meaning that there are only 30 affordable units for every 100
families.
(6) Only one in four families that qualify for rental
housing assistance receives benefits.
(7) Housing assistance waiting lists can be 10 years long
and in many communities are closed.
(8) The shortage of rental homes that are affordable for
extremely low-income households to be the principal cause of
homelessness in the United States.
(9) Public housing facilities in the United States have
more than $26 billion in deferred maintenance after decades of
neglect which results in a loss of 10,000 units each year.
(10) The low-income housing tax credit successfully
provides 100,000 units of affordable housing every year.
(11) Every tax reform commission has recommended capping
the mortgage interest deduction and converting it to a fairer
and simpler credit.
(12) More than 75 percent of the value of the mortgage
interest deduction inures to the benefit of the top 20 percent
of earners.
(13) Fewer than half of tax filers with a home mortgage
claim the mortgage interest deduction.
(14) Only 9 percent of rural tax filers claim the mortgage
interest deduction.
(15) Ninety-six percent of homes sold between 2005 and 2011
sold for less than $500,000.
(16) A better approach that provides equitable benefits for
families who buy homes, enables more low- and moderate-income
homeowners to receive a benefit, and invests in affordable
rental housing to assist those who used to be homeless or who
have extremely or very low incomes is needed to strengthen
families and communities.
SEC. 602. REPLACEMENT OF MORTGAGE INTEREST DEDUCTION WITH MORTGAGE
INTEREST CREDIT.
(a) Nonrefundable Credit.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
nonrefundable personal credits) is amended by inserting after section
25D the following new section:
``SEC. 25E. INTEREST ON INDEBTEDNESS SECURED BY QUALIFIED RESIDENCE.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 15 percent of the qualified
residence interest paid or accrued during the taxable year.
``(b) Qualified Residence Interest.--For purposes of this section--
``(1) In general.--The term `qualified residence interest'
means interest which is paid or accrued during the taxable year
on--
``(A) acquisition indebtedness with respect to any
qualified residence of the taxpayer, or
``(B) home equity indebtedness with respect to any
qualified residence of the taxpayer.
For purposes of the preceding sentence, the determination of
whether any property is a qualified residence of the taxpayer
shall be made as of the time the interest is accrued.
``(2) Overall limitation.--The aggregate amount of
indebtedness taken into account for any period for purposes of
this section shall not exceed $500,000 ($250,000 in the case of
a married individual filing a separate return).
``(3) Acquisition indebtedness.--The term `acquisition
indebtedness' means any indebtedness which--
``(A) is incurred in acquiring, constructing, or
substantially improving any qualified residence of the
taxpayer, and
``(B) is secured by such residence.
Such term also includes any indebtedness secured by such
residence resulting from the refinancing of indebtedness
meeting the requirements of the preceding sentence (or this
sentence), but only to the extent the amount of the
indebtedness resulting from such refinancing does not exceed
the amount of the refinanced indebtedness.
``(4) Home equity indebtedness.--
``(A) In general.--The term `home equity
indebtedness' means any indebtedness (other than
acquisition indebtedness) secured by a qualified
residence to the extent the aggregate amount of such
indebtedness does not exceed--
``(i) the fair market value of such
qualified residence, reduced by
``(ii) the amount of acquisition
indebtedness with respect to such residence.
``(B) Limitation.--The aggregate amount treated as
home equity indebtedness for any period shall not
exceed $100,000 ($50,000 in the case of a married
individual filing a separate return).
``(c) Special Rules.--For purposes of this section--
``(1) Qualified residence.--The term `qualified residence'
means--
``(A) the principal residence (within the meaning
of section 121) of the taxpayer, and
``(B) 1 other residence of the taxpayer which is
selected by the taxpayer for purposes of this
subsection for the taxable year and which is used by
the taxpayer as a residence (within the meaning of
section 280A(d)(1)).
``(2) Married individuals filing separate returns.--If a
married couple does not file a joint return for the taxable
year--
``(A) such couple shall be treated as 1 taxpayer
for purposes of paragraph (1), and
``(B) each individual shall be entitled to take
into account 1 residence unless both individuals
consent in writing to 1 individual taking into account
the principal residence and 1 other residence.
``(3) Residence not rented.--For purposes of paragraph
(1)(B), notwithstanding section 280A(d)(1), if the taxpayer
does not rent a dwelling unit at any time during a taxable
year, such unit may be treated as a residence for such taxable
year.
``(4) Unenforceable security interests.--Indebtedness shall
not fail to be treated as secured by any property solely
because, under any applicable State or local homestead or other
debtor protection law in effect on August 16, 1986, the
security interest is ineffective or the enforceability of the
security interest is restricted.
``(5) Special rules for estates and trusts.--For purposes
of determining whether any interest paid or accrued by an
estate or trust is qualified residence interest, any residence
held by such estate or trust shall be treated as a qualified
residence of such estate or trust if such estate or trust
establishes that such residence is a qualified residence of a
beneficiary who has a present interest in such estate or trust
or an interest in the residuary of such estate or trust.
``(d) Coordination With Deduction.--In the case of any taxable year
beginning in calendar years 2014 through 2018, the taxpayer may elect
to apply this section in lieu of the deduction under section 163 for
qualified residence interest.''.
(b) Phaseout of Deduction.--Section 163(h) of such Code is amended
by adding at the end the following new paragraph:
``(6) Phaseout.--
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2013, the amount
otherwise allowable as a deduction by reason of
paragraph (2)(D) shall be the applicable percentage of
such amount.
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage shall be
determined in accordance with the following table:
------------------------------------------------------------------------
The applicable
``For taxable years beginning in calendar year: percentage
is:
------------------------------------------------------------------------
2014.................................................... 100%
2015.................................................... 80%
2016.................................................... 60%
2017.................................................... 40%
2018.................................................... 20%
2019 and thereafter..................................... 0%.''.
------------------------------------------------------------------------
(c) Phasedown of Mortgage Limit.--Subparagraph (B) of section
163(h)(3) of such Code is amended by adding at the end the following:
``(iii) Phasedown.--
``(I) In general.--In the case of
any taxable year beginning in calendar
years 2014 through 2018, clause (ii)
shall be applied by substituting the
amounts specified in the table in
subclause (II) of this clause for
`$1,000,000' and `$500,000',
respectively.
``(II) Phasedown amounts.--For
purposes of subclause (I), the amounts
specified in this subclause for a
taxable year shall be the amounts
specified in the following table:
------------------------------------------------------------------------
Amount Amount
``For taxable years beginning in calendar substituted substituted
year: for for
$1,000,000: $500,000:
------------------------------------------------------------------------
2014.......................................... $1,000,000 $500,000
2015.......................................... $900,000 $450,000
2016.......................................... $800,000 $400,000
2017.......................................... $700,000 $350,000
2018.......................................... $600,000 $300,000.''
.
------------------------------------------------------------------------
(d) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after section 25D the following new item:
``Sec. 25E. Interest on indebtedness secured by qualified residence.''.
(e) Effective Date.--The amendments made by this section shall
apply with respect to interest paid or accrued after December 31, 2013.
SEC. 603. DEDUCTION ALLOWED FOR INTEREST AND TAXES RELATING TO LAND FOR
DWELLING PURPOSES OWNED OR LEASED BY COOPERATIVE HOUSING
CORPORATIONS.
(a) In General.--Subparagraph (B) of section 216(b)(1) of the
Internal Revenue Code of 1986 is amended by inserting ``or land,''
after ``building,''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to amounts paid or accrued after December 31, 2012.
SEC. 604. USE OF MORTGAGE INTEREST SAVINGS TO INCREASE LOW-INCOME
HOUSING TAX CREDIT.
(a) In General.--Subclause (I) of section 42(h)(3)(C)(ii) of the
Internal Revenue Code of 1986 is amended by striking ``$1.75 ($1.50 for
2001)'' and inserting ``$2.70''.
(b) Inflation Adjustment.--Subparagraph (H) of section 42(h)(3) of
such Code is amended to read as follows:
``(H) Cost-of-living adjustment.--
``(i) In general.--In the case of a
calendar year after 2002, the $2,000,000 amount
in subparagraph (C) shall be increased by an
amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year by
substituting `calendar year 2001' for
`calendar year 1992' in subparagraph
(B) thereof.
``(ii) Per capita amount.--In the case of a
calendar year after 2014, the $2.70 amount in
subparagraph (C) shall be increased by an
amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year by
substituting `calendar year 2013' for
`calendar year 1992' in subparagraph
(B) thereof.
``(iii) Rounding.--
``(I) In the case of the $2,000,000
amount, any increase under clause (i)
which is not a multiple of $5,000 shall
be rounded to the next lowest multiple
of $5,000.
``(II) In the case of the $2.70
amount, any increase under clause (ii)
which is not a multiple of 5 cents
shall be rounded to the next lowest
multiple of 5 cents.''.
(c) Eligible Basis.--Clause (i) of section 42(d)(5)(B) of such Code
is amended by striking ``and'' at the end of subclause (I), by striking
the period at the end of subclause (II) and inserting ``, and'', and by
adding at the end the following:
``(III) in the case of a building
containing units which are designated
to serve extremely low-income
households by the State housing credit
agency and require the increase in
credit under this subparagraph in order
for such building to be financially
feasible as part of a qualified low-
income housing project, the eligible
basis of such building determined by
the portion of such units shall be 150
percent of such basis determined
without regard to this subparagraph.''.
(d) Effective Date.--The amendments made by this section shall
apply to allocations made in calendar years beginning after December
31, 2013.
SEC. 605. USE OF MORTGAGE INTEREST SAVINGS FOR AFFORDABLE HOUSING
PROGRAMS.
(a) Use of Savings.--For each year, the Secretary of the Treasury
shall determine the amount of revenues accruing to the general fund of
the Treasury by reason of the enactment of section 602 that remain
after use of such revenues in accordance with section 604 and shall
credit an amount equal to such remaining revenues as follows:
(1) Housing trust fund.--The Secretary shall credit the
Housing Trust Fund established under section 1338 of the
Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (12 U.S.C. 4568) with an amount equal to 60 percent of
the amount of such remaining revenues.
(2) Section 8 rental assistance.--The Secretary shall
credit an amount equal to 30 percent of the amount of such
remaining revenues to the Secretary of Housing and Urban
Development for use only for providing tenant- and project-
based rental assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f).
(3) Public housing capital fund.--The Secretary shall
credit an amount equal to 10 percent of the amount of such
remaining revenues to the Public Housing Capital Fund under
section 9(d) of the United States Housing Act of 1937 (42
U.S.C. 1437g(d)).
(b) Changes to Housing Trust Fund.--Not later than the expiration
of the 6-month period beginning on the date of the enactment of this
Act, the Secretary of Housing and Urban Development shall revise the
regulations relating to the Housing Trust Fund established under
section 1338 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4568) to provide that such section is
carried out with the maximum amount of flexibility possible while
complying with such section, which shall include revising such
regulations--
(1) to increase the limitation on amounts from the Fund
that are available for use for operating assistance for
housing;
(2) to allow public housing agencies and tribally
designated housing entities to be recipient of grants amounts
from the Fund that are allocated to a State or State designated
entity; and
(3) eliminate the applicability of rules for the Fund that
are based on the HOME Investment Partnerships Act (42 U.S.C.
1721 et seq.).
TITLE VII--LOW-INCOME HOUSING TAX CREDIT FOR HOMELESS YOUTH
SEC. 701. STUDENTS WHO WERE HOMELESS YOUTHS OR HOMELESS VETERANS
PERMITTED TO OCCUPY LOW-INCOME HOUSING UNITS.
(a) In General.--Section 42(i)(3)(D)(i) of the Internal Revenue
Code of 1986 is amended by redesignating subclauses (II) and (III) as
subclauses (IV) and (V) and inserting after subclause (I) the following
new subclauses:
``(II) a student who was (prior to
occupying such unit) a homeless child
or youth (as defined in section 725 of
the McKinney-Vento Homeless Assistance
Act),
``(III) a student who was (prior to
occupying such unit) a homeless veteran
(as defined in section 2002 of title
38, United States Code),''.
(b) Effective Date.--The amendments made by this section shall
apply to determinations made on or after the date of the enactment of
this Act.
TITLE VIII--RENTERS TAX CREDIT
SEC. 801. RENTERS TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45S. RENTERS CREDIT.
``(a) In General.--For purposes of section 38, in the case of a
qualified credit recipient, the renters credit for any taxable year is
an amount equal to the sum of the renters credit amounts allocated to
such qualified credit recipient under this section for months ending
during the taxable year.
``(b) Renters Credit Amount.--
``(1) In general.--For purposes of this section, the term
`renters credit amount' means the rent reduction amount with
respect to each rental unit which is occupied by a qualified
renter.
``(2) Qualified renter.--For purposes of this section, the
term `qualified renter' means a family unit with income not
greater than the higher of--
``(A) 60 percent of local median income, or
``(B) 150 percent of the Federal poverty line,
in each case as determined by the Secretary of Housing and
Urban Development for a family of the size involved.
``(3) Rent reduction amount.--For purposes of this
section--
``(A) In general.--The term `rent reduction amount'
is the amount by which the fair market rent for the
unit involved exceeds the rent charged to the qualified
renter.
``(B) Limitation.--The rent reduction amount taken
into account under this section shall not exceed the
excess of--
``(i) the rent charged to the qualified
renter (or, if lower, specified modest rent),
over
``(ii) 30 percent of the qualified renters
income (prorated monthly) as determined by the
renters credit agency of the State.
``(C) Specified modest rent.--The term `specified
modest rent' means--
``(i) the Fair Market Rent determined by
the Secretary of Housing and Urban Development
for the ZIP code (if the unit is located in a
metropolitan area) or non-metropolitan county,
or
``(ii) such amount as may be determined by
the State with respect to the area in which the
unit is located if such amount is within 25
percent of the amount determined under clause
(i) with respect to such unit.
``(D) Utilities.--The renters credit agency of the
State may determine whether and how to take into
account the cost of utilities in determining the rent
reduction amount.
``(E) Credit adjustment.--The renters credit agency
of the State may elect to increase the rent reduction
amount such that such amount does not exceed 110
percent of such amount as determined without regard to
this subparagraph.
``(c) Qualified Credit Recipient.--For purposes of this section,
the term `qualified credit recipient' means, with respect to any rental
unit occupied by a qualified renter, the owner of such unit but only to
the extent of the renters credit amounts which have been allocated to
such person by the renters credit agency. In lieu of the owner of the
unit, the renters credit agency may treat the lender of any loan to
such owner as the qualified credit recipient if such unit secures such
loan.
``(d) Allocations by Renters Credit Agency to Credit Recipients.--
``(1) In general.--The renters credit agency may make
allocations of renters credit amounts to qualified credit
recipients under this section on the basis of--
``(A) the identity of the qualified renter, such
that the renters credit amount is allowed to the owner
of any rental unit which such qualified renter occupies
(or the lender referred to in subsection (c)) for any
month, or
``(B) one or more rental units, such that the
renters credit amount is allowed to the owner of such
units (or the lender referred to in subsection (c)) for
such months as such units are occupied by a qualified
renter.
``(2) Restrictions on unit based allocations.--A renters
credit agency may make allocations of renters credit as
described in paragraph (1)(B) only if--
``(A) such units are part of a project or building
in which not more than 40 percent of the units receive
allocations under this section (the Secretary may
provide such exceptions to the requirement of this
subparagraph as the Secretary determines appropriate
for small buildings or buildings with respect to which
more than 40 percent of the units were previously
subsidized under other Federal programs), and
``(B) the Secretary has approved a mobility plan
submitted by such renters credit agency which provides
for an adequate method to ensure that qualified renters
have the ability to move from a unit which is eligible
for credit under this section without losing the rent
subsidy provided by this section.
``(e) Allocations of Credit Authority to State Agencies.--
``(1) Renters credit dollar amount for agencies.--
``(A) State limitation.--The aggregate credit
amounts which a renters credit agency may allocate for
any calendar year is the portion of the State renters
credit ceiling allocated under this paragraph for such
calendar year to such agency.
``(B) State ceiling initially allocated to state
housing credit agencies.--Except as provided in
subparagraphs (D) and (E), the State renters credit
ceiling for each calendar year shall be allocated to
the renters credit agency of such State. If there is
more than 1 renters credit agency of a State, all such
agencies shall be treated as a single agency.
``(C) State renters credit ceiling.--The State
renters credit ceiling applicable to any State and any
calendar year shall be an amount equal to the sum of--
``(i) the unused State renters credit
ceiling (if any) of such State for the
preceding calendar year,
``(ii) the greater of--
``(I) $17.50 multiplied by the
State population, or
``(II) $20,000,000,
``(iii) the amount of State renters credit
ceiling returned in the calendar year, plus
``(iv) the amount (if any) allocated under
subparagraph (D) to such State by the
Secretary.
For purposes of clause (i), the unused State renters
credit ceiling for any calendar year is the excess (if
any) of the sum of the amounts described in clauses
(ii) through (iv) over the aggregate renters credit
dollar amount allocated for such year.
``(D) Unused renters credit carryovers allocated
among certain states.--
``(i) In general.--The unused renters
credit carryover of a State for any calendar
year shall be assigned to the Secretary for
allocation among qualified States for the
succeeding calendar year.
``(ii) Unused renters credit carryover.--
For purposes of this subparagraph, the unused
renters credit carryover of a State for any
calendar year is the excess (if any) of--
``(I) the unused State renters
credit ceiling for the year preceding
such year, over
``(II) the aggregate renters credit
dollar amount allocated for such year.
``(iii) Formula for allocation of unused
housing credit carryovers among qualified
states.--The amount allocated under this
subparagraph to a qualified State for any
calendar year shall be the amount determined by
the Secretary to bear the same ratio to the
aggregate unused renters credit carryovers of
all States for the preceding calendar year as
such State's population for the calendar year
bears to the population of all qualified States
for the calendar year. For purposes of the
preceding sentence, population shall be
determined in accordance with section 146(j).
``(iv) Qualified state.--For purposes of
this subparagraph, the term `qualified State'
means, with respect to a calendar year, any
State--
``(I) which allocated its entire
State renters credit ceiling for the
preceding calendar year, and
``(II) for which a request is made
(not later than May 1 of the calendar
year) to receive an allocation under
clause (iii).
``(E) Application of certain rules.--For purposes
of this paragraph, rules similar to the rules of
subparagraphs (E), (F), and (G) of section 42(h)(3)
shall apply.
``(F) Inflation adjustment.--
``(i) In general.--In the case of a
calendar year after 2013, the $20,000,000 and
$17.50 amounts in subparagraph (C) shall each
be increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year by
substituting `calendar year 2001' for
`calendar year 1992' in subparagraph
(B) thereof.
``(ii) Rounding.--
``(I) In the case of the
$20,000,000 amount, any increase under
clause (i) which is not a multiple of
$50,000 shall be rounded to the next
lowest multiple of $50,000.
``(II) In the case of the $17.50
amount, any increase under clause (i)
which is not a multiple of 50 cents
shall be rounded to the next lowest
multiple of 50 cents.
``(f) Other Definitions.--For purposes of this section--
``(1) Renters credit agency.--The term `renters credit
agency' means, with respect to any State, the housing credit
agency of such State (as defined in section 42(h)(8)(A)) or
such other agency as is authorized to carry out the activities
of the renters credit agency under this section.
``(2) Possessions treated as states.--The term `State'
includes a possession of the United States.
``(g) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section.''.
(b) Credit To Be Part of General Business Credit.--
(1) In general.--Subsection (b) of section 38 of such Code
is amended by striking ``plus'' at the end of paragraph (35),
by striking the period at the end of paragraph (36) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(37) the renters credit determined under section
45S(a).''.
(2) Credit allowable against alternative minimum tax.--
Subparagraph (B) of section 38(c)(4) of such Code is amended by
redesignating clauses (vii) through (ix) as clauses (viii)
through (x), respectively, and by inserting after clause (vi)
the following new clause:
``(vii) the credit determined under section
45S,''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45S. Renters credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to allocations made for calendar years after 2014 and to taxable
years ending after December 31, 2014.
DIVISION C--NUTRITION
TITLE IX--IMPROVING TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM
SEC. 901. REFERENCES.
Except as otherwise expressly provided in this title, wherever in
this title an amendment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the amendment or repeal
shall be considered to be made to a section or other provision of the
Social Security Act.
SEC. 902. STATE PLANS REQUIRED TO ADDRESS WHETHER AND HOW STATES WILL
PROVIDE ASSISTANCE TO NEEDIEST GEOGRAPHIC AREAS.
Section 402(a)(1)(A)(i) (42 U.S.C. 602(a)(1)(A)(i)) is amended by
inserting ``, including whether and how the State will give priority to
providing benefits and services in areas of the State with the greatest
need (such as areas with the greatest unemployment rates, the greatest
poverty rates, and the least job opportunity to population ratios)''
before the period.
SEC. 903. FUNDING OF THE TANF PROGRAM.
(a) State Family Assistance Grant.--
(1) In general.--Section 403(a)(1) (42 U.S.C. 603(a)(1)) is
amended--
(A) in subparagraph (A), by striking ``fiscal year
2012'' and inserting ``fiscal year 2013 and each
succeeding fiscal year''; and
(B) by striking subparagraphs (B) and (C) and
inserting the following:
``(B) State family assistance grant.--
``(i) In general.--The State family
assistance grant payable to a State for a
fiscal year shall be the greater of--
``(I) the adjusted basic block
grant, plus the amount required to be
paid to the State under paragraph (3)
(as in effect on September 30, 2010)
for fiscal year 2010; or
``(II) the amount required to be
paid to the State under this paragraph
for the preceding fiscal year.
``(ii) Adjusted basic block grant.--In
clause (i), the term `adjusted block grant'
means, with respect to a State, the product
of--
``(I) the amount required to be
paid to the State under this paragraph
for fiscal year 2010 (determined
without regard to any reduction
pursuant to section 409 or 412(a)(1));
``(II) 1.00, plus the percentage
(if any) by which the average of the
CPI for the 12-month period ending with
June of the preceding fiscal year
exceeds the average of the CPI for the
12-month period ending with June 1996,
expressed as a decimal; and
``(III) 1.00, plus the percentage
(if any) by which the most recent
estimate by the Bureau of the Census of
the population of the State that has
not attained 18 years of age exceeds
the most recent estimate by the Bureau
of the Census of that population as of
July 1, 1996, expressed as a decimal.
``(iii) CPI defined.--In clause (ii), the
term `CPI' means the last Consumer Price Index
for All Urban Consumers published by the
Department of Labor for the period involved.
``(C) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated such sums as are
necessary for grants under this paragraph for each
fiscal year.''.
(2) Conforming amendment to eliminate supplemental grants
for population increases in certain states.--Section 403(a) (42
U.S.C. 603(a)) is amended by striking paragraph (3).
(b) Penalty for Failure To Maintain Effort Adjusted for
Inflation.--Section 409(a)(7) (42 U.S.C. 609(a)(7)) is amended--
(1) in subparagraph (A), by inserting ``the inflation-
adjusted'' before ``historic State expenditures''; and
(2) in subparagraph (B), by redesignating clauses (iii)
through (v) as clauses (iv) through (vi), respectively, and
inserting after clause (ii) the following:
``(iii) Inflation-adjusted historic state
expenditures.--The term `inflation-adjusted
historic State expenditures' means, with
respect to a fiscal year--
``(I) historic State expenditures;
multiplied by
``(II) 1.00, plus (in the case of
fiscal year 2014 or any succeeding
fiscal year) the percentage (if any) by
which the average of the CPI (as
defined in section 403(a)(1)(B)(iii))
for the 12-month period ending with
June of the preceding fiscal year
exceeds the average of the CPI (as so
defined) for the 12-month period ending
with June 2012, expressed as a
decimal.''.
(c) Modification of Contingency Fund.--
(1) In general.--Section 403(b) (42 U.S.C. 603(b)) is
amended by striking all that follows paragraph (1) and
inserting the following:
``(2) Grants.--
``(A) In general.--The Secretary shall make a grant
to each eligible State and each Indian tribe that is an
economically needy entity for a calendar quarter, in an
amount equal to 80 percent of the amount (if any) by
which the total amount of relevant expenditures of the
entity for the quarter exceeds the total amount of the
relevant expenditures of the entity for the
corresponding quarter in the base year of the entity,
subject to paragraph (2).
``(B) Limitation.--The total amount payable to an
entity under this subsection for a fiscal year shall
not exceed an amount equal to 25 percent of the amount
payable to the entity--
``(i) if the entity is a State, under
section 403(a)(1) for the fiscal year; or
``(ii) if the entity is an Indian tribe,
under section 412(a)(1) for the fiscal year.
``(3) Definitions.--In paragraph (2):
``(A) Economically needy entity.--The term
`economically needy entity' means an entity with
respect to a calendar quarter--
``(i) if the seasonally adjusted average
unemployment rate with respect to entity for
the quarter or any of the preceding 4 calendar
quarters exceeds 6.5 percent; or
``(ii) in the case that the unemployment
rate information described in clause (i) is not
available with respect to the entity, if the
entity meets such qualifications as the
Secretary, in consultation with the Secretary
of Labor, shall, by regulation, prescribe.
``(B) Base year.--The term `base year' means, with
respect to an entity, and a calendar quarter in a
fiscal year--
``(i) except as provided in clause (ii),
whichever of the 2 fiscal years most recently
preceding the 1st fiscal year of the most
recent contingency fund eligibility period for
the entity, is the fiscal year in which the
relevant expenditures of the entity were the
lesser; or
``(ii) if the 1st year of the period
referred to in clause (i) is fiscal year 2014,
whichever of fiscal year 2007 or 2008 is the
fiscal year in which the relevant expenditures
of the entity were the lesser.
``(C) Contingency fund eligibility period.--The
term `contingency fund eligibility period' means, with
respect to an entity, a period of 1 or more consecutive
calendar quarters for which the entity is an
economically needy entity.
``(D) Relevant expenditures.--
``(i) In general.--The term `relevant
expenditures' means expenditures--
``(I) for assistance under the
program funded under this part of the
entity (including, in the case of a
State, any qualified State expenditures
(as defined in section 409(a)(7)(B)(i))
and any expenditures under any other
State program funded by such
expenditures);
``(II) for child care;
``(III) for subsidized employment
under the program funded under this
part of the entity (including, in the
case of a State, such expenditures
under any other State program funded by
qualified State expenditures (as
defined in section 409(a)(7)(B)(i))),
other than expenditures made using
Federal funds or with respect to which
the entity received a grant made under
paragraph (3) of this subsection; and
``(IV) for administrative costs
associated with making the expenditures
referred to in the preceding subclauses
of this clause.
``(ii) Child care expenditures.--For
purposes of clause (i), expenditures for child
care consist of the following:
``(I) Amounts transferred under
section 404(d)(1)(B).
``(II) Expenditures for child care
assistance from Federal funds provided
under this part.
``(III) In the case of an entity
that is a State, expenditures for child
care assistance that are qualified
State expenditures (as defined in
section 409(a)(7)(B)(i)), but only to
the extent exceeding the total
expenditures of the State (other than
from Federal funds) for child care in
fiscal year 1994 or 1995 (whichever is
the greater).
``(iii) Authority to collect and adjust
data.--In determining the amount of the
expenditures of a State for basic assistance,
child care, and subsidized employment, during
any period for which the State requests funds
under this subsection, and during the base year
of the State, the Secretary may make
appropriate adjustments to the data, on a
State-by-State basis, to ensure that the data
are comparable with respect to the groups of
families served and the types of aid provided.
The Secretary may develop a mechanism for
collecting expenditure data, including
procedures which allow States to make
reasonable estimates, and may set deadlines for
making revisions to the data.
``(4) Use of grant.--Each State to which a grant is made
under this subsection shall use the grant to serve areas of the
State with the greatest need (as referred to in section
402(a)(1)(A)).
``(5) Appropriation.--
``(A) In general.--Out of any funds in the Treasury
of the United States not otherwise appropriated, there
are appropriated for payment to the Fund--
``(i) $2,500,000,000 for fiscal year 2014;
and
``(ii) for each succeeding fiscal year, the
amount appropriated under this paragraph for
the then preceding fiscal year, increased by
the percentage (if any) by which the amount
appropriated under section 403(a)(1) for the
fiscal year involved exceeds the amount
appropriated under such section for the then
preceding fiscal year.
``(B) Availability.--Amounts made available under
this paragraph for a fiscal year shall remain available
until expended.
``(6) Actions to be taken in anticipation of exhaustion of
fund.--The Secretary shall monitor the amount in, and the rate
at which amounts are paid from, the Fund, and if the Secretary
determines that the Fund will be exhausted within 6 months, the
Secretary shall--
``(A) notify the Congress of the determination; and
``(B) develop and communicate to each State and
Indian tribe that is an economically needy entity as of
the date of the determination, the procedure for
allocating amounts in the Fund among such entities.''.
(2) Elimination of penalty for failure of state receiving
amounts from contingency fund to maintain 100 percent of
historic effort.--
(A) In general.--Section 409(a) (42 U.S.C. 609(a))
is amended by striking paragraph (10) and redesignating
paragraphs (11) through (16) as paragraphs (10) through
(15), respectively.
(B) Conforming amendments.--Section 409 (42 U.S.C.
609) is amended in each of subsections (b)(2) and
(c)(4), by striking ``(10), (12), or (13)'' and
inserting ``(11), or (12)''.
(3) Conforming amendment.--Section 409(a)(3)(C) (42 U.S.C.
609(a)(3)(C)) is amended by striking ``needy State (as defined
in section 403(b)(6))'' and inserting ``economically needy
entity (as defined in section 403(b)(3)(A))''.
(4) Amounts provided to territories from the contingency
fund to be disregarded for purposes of limitation on payments
to the territories.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2))
is amended by inserting ``403(b),'' before ``406,''.
(d) Matching Grants for Subsidized Employment.--
(1) In general.--Section 403(a) (42 U.S.C. 603(a)), as
amended by subsection (a)(2) of this section, is further
amended by inserting after paragraph (2) the following:
``(3) Matching grants for subsidized employment.--
``(A) In general.--The Secretary shall make a
grant--
``(i) to each eligible State that is 1 of
the 50 States or the District of Columbia, for
each fiscal year for which the State is an MOE
State; and
``(ii) to each State that is not 1 of the
50 States or the District of Columbia, and to
each Indian tribe, for each fiscal year for
which the State or tribe, as the case may be,
meets such terms and conditions as the
Secretary shall, by regulation, establish,
which shall be comparable to the terms and
conditions under which grants are made under
clause (i).
``(B) MOE state.--In subparagraph (A), the term
`MOE State' means a State if the qualified expenditures
of the State (as defined in section 409(a)(7)(B)(i))
for the fiscal year exceeds the applicable percentage
(as defined in clause (ii) of such section) of
inflation-adjusted historic State expenditures (as
defined in clause (iii) of such section) of the State
with respect to the fiscal year.
``(C) Amount of grant.--
``(i) States.--
``(I) In general.--The grant to be
made to a State under subparagraph
(A)(i) for a fiscal year shall be in an
amount equal to 50 percent of the
excess expenditures of the State for
subsidized employment during the fiscal
year.
``(II) Excess expenditures of the
state for subsidized employment.--The
term `excess expenditures of the State
for subsidized employment' means, with
respect to a fiscal year, the lesser
of--
``(aa) the excess described
in subparagraph (B) with
respect to the State for the
fiscal year; or
``(bb) an amount equal to
the total expenditures of the
State for subsidized employment
funded under this part or under
any other State program funded
by qualified State expenditures
(as defined in section
409(a)(7)(B)(i)), excluding
those with respect to which a
grant is made to the State
under subsection (b) of this
section, during the fiscal
year.
``(ii) Indian tribes.--The grant to be made
to an Indian tribe under this paragraph shall
be in such amount as the Secretary deems
appropriate.
``(D) Use of grant.--Notwithstanding section 404, a
State or Indian tribe to which a grant is made under
this paragraph shall use the grant solely to finance
subsidized employment activities, and to serve areas of
the State with the greatest need (as referred to in
section 402(a)(1)(A)).
``(E) Appropriation.--Out of any funds in the
Treasury of the United States not otherwise
appropriated, there are appropriated such sums as are
necessary for grants under this paragraph for each
fiscal year.''.
(2) Amounts provided to territories from the matching grant
to be disregarded for purposes of limitation on payments to the
territories.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is
amended by inserting ``403(a)(3),'' after ``403(a)(2),''.
(3) Data reports required with respect to families that
include an individual participating in subsidized employment
programs.--Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is
amended, in the matter before clause (i), by inserting ``, and
families that include an individual participating in subsidized
employment funded with Federal funds or qualified State
expenditures (as so defined)'' before the colon.
(e) Tribal Family Assistance Grants.--Section 412(a)(1) (42 U.S.C.
612(a)(1)) is amended--
(1) in subparagraph (A), by striking ``fiscal year 2012''
and inserting ``each fiscal year''; and
(2) in subparagraph (B)--
(A) by redesignating clause (ii) as clause (iii);
and
(B) by striking clause (i) and inserting the
following:
``(i) In general.--The amount determined
under this subparagraph for a fiscal year is an
amount equal to the sum of the adjusted
historic expenditures for the fiscal year with
respect to each State in which there lies a
service area of the Indian tribe is located.
``(ii) Adjusted historic expenditures
defined.--In clause (i), the term `adjusted
historic expenditures' means, with respect to a
fiscal year, a State, and an Indian tribe, the
total amount of the Federal payments to the
State under section 403 (as then in effect) for
fiscal year 1994 attributable to expenditures
(other than child care expenditures) by the
State under parts A and F (as so in effect) for
fiscal year 1994 for Indian families residing
in the service areas identified by the tribe
pursuant to subsection (b)(1)(C) of this
section that are in the State, increased by the
percentage (if any) by which the amount of the
grant payable under section 403(a)(1) for the
fiscal year to the State exceeds the amount of
the grant so payable to the State for fiscal
year 2010.''.
(f) Census Bureau Study.--Section 414 (42 U.S.C. 614) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--The Director of the Bureau of the Census shall
conduct a study to assess the effects of policies and programs related
to low-income families, including policies and programs under State
programs funded under this part or funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)), including changes
and policies in such programs made pursuant to the Rewriting to Improve
and Secure an Exit Out of Poverty Act. The Director shall design the
study in consultation with the Secretary. Every 5 years, the Director
shall, in consultation with the Secretary, revise the content and
nature of the study to reflect emerging policy issues related to low-
income families.''; and
(2) in subsection (b), by striking ``fiscal year 2012'' and
inserting ``each fiscal year''.
(g) Funding of Studies and Evaluations.--Section 413(h)(1) (42
U.S.C. 613(h)(1)) is amended by striking ``fiscal year 2012'' and
inserting ``each fiscal year''.
(h) Matching Grants to Certain Territories.--Section 1108 (42
U.S.C. 1308) is amended--
(1) in subsection (a)(2), by inserting ``section 403(a)(1)
(to the extent exceeding the amount required to be so paid to
the territory for fiscal year 2011),'' before ``403(a)(2)'';
and
(2) in subsection (b)(2), by striking ``fiscal year 2012''
and inserting ``each fiscal year''.
SEC. 904. WORK REQUIREMENTS.
(a) Participation Rate Requirement.--Section 407 (42 U.S.C. 607) is
amended by striking subsections (a) and (b) and inserting the
following:
``(a) Participation Rate Requirement.--
``(1) In general.--A State to which a grant is made under
section 403 for a fiscal year shall achieve a minimum
participation rate of 50 percent with respect to all families
residing in the State that include a work-eligible individual.
``(2) Work-eligible individual defined.--
``(A) In general.--In subsection (a), the term
`work-eligible individual', subject to subparagraphs
(B) and (C), means--
``(i) an adult recipient of assistance
under the State program funded under this part
or under any other State program funded by
qualified State expenditures (as defined in
section 409(a)(7)(B)(i));
``(ii) a former recipient of such
assistance who is--
``(I) a parent of a dependent child
who is such a recipient; and
``(II) no longer eligible for
assistance under the State program
funded under this part by reason of
section 408(a)(7); and
``(iii) a participant in a subsidized
employment program funded under this part or
under any other State program funded by
qualified State expenditures (as defined in
section 409(a)(7)(B)(i)).
``(B) Exclusion of individuals sanctioned or
undergoing pre-sanction review.--The term `work-
eligible individual' does not include any individual
with respect to whom--
``(i) there is in effect a penalty imposed
by the State under subsection (e) of this
section; or
``(ii) the State has initiated (but not
completed) the pre-sanction review process
pursuant to section 408(a)(14)(A).
``(C) State option to exclude certain
individuals.--A State may exclude from the term `work-
eligible individual' any resident of the State who is--
``(i) a single parent caring for a child
who has not attained 1 year of age;
``(ii) a recipient of supplemental security
income benefits under title XVI, disability
insurance benefits under title II, or other
Federal or State benefits based on disability;
``(iii) an applicant for supplemental
security income benefits under title XVI;
``(iv) an individual who is needed in the
home of the individual to care for a disabled
member of the family of the individual; or
``(v) an individual who (but for the
exercise of the State option under this clause)
would be a work-eligible individual under a
tribal family assistance plan approved under
section 412 or under a tribal work program to
which funds are provided under this part.
``(b) Calculation of Participation Rates.--
``(1) Average monthly rate.--For purposes of subsection
(a), the participation rate of a State for a fiscal year is the
average of the participation rates of the State for each month
in the fiscal year.
``(2) Monthly participation rate.--For purposes of
paragraph (1), the participation rate of a State for a month,
expressed as a percentage, is--
``(A) the number of families residing in the State
that include a work-eligible individual who is engaged
in work for the month; divided by
``(B) the number of families residing in the State
that include a work-eligible individual.''.
(b) Participation Requirements.--Section 407(c) (42 U.S.C. 607(c))
is amended to read as follows:
``(c) Engaged in Work.--For purposes of subsection (b):
``(1) General rule.--An individual is engaged in work for a
month in a fiscal year if the recipient is participating in
work activities for an average of at least 20 hours per week
during the month.
``(2) Individuals complying with a modified employability
plan deemed to be engaged in work.--An individual is deemed to
be engaged in work for a month if the State determines that the
individual is in substantial compliance with the activities and
hourly participation requirements of a modified employability
plan developed for the individual in accordance with section
408(h).
``(3) Single teen head of household or married teen who
maintains satisfactory school attendance deemed to be engaged
in work.--An individual who is married or a head of household
and has not attained 20 years of age is deemed to be engaged in
work for a month if the recipient maintains satisfactory
attendance at secondary school or the equivalent during the
month.''.
(c) Elimination of 12-Month Limit on Counting Vocational
Educational Training as a Work Activity.--Section 407(d)(8) (42 U.S.C.
607(d)(8)) is amended by striking ``(not to exceed 12 months with
respect to any individual)''.
SEC. 905. WORK RULES.
(a) Option of Recipient To Have Trained Personnel Assess Certain
Barriers To Employment; Additional Matters Required To Be Assessed.--
Section 408(b)(1) (42 U.S.C. 608(b)(1)) is amended--
(1) by inserting ``(which, at the option of the recipient,
shall be conducted by trained personnel with respect to
barriers to employment specified by the recipient)'' after
``assessment''; and
(2) by striking ``and employability'' and inserting
``employability, physical and mental impairments, English
proficiency, child care needs, and whether the recipient is a
victim of domestic or sexual violence,''.
(b) Individual Responsibility Plans.--
(1) Plans required; plans to include well-being plans for
children.--Section 408(b)(2)(A) (42 U.S.C. 608(b)(2)(A)) is
amended--
(A) in the matter preceding clause (i), by striking
``may'' and inserting ``shall'';
(B) in clause (iv)--
(i) by inserting ``, supports,'' after
``counseling''; and
(ii) by striking ``and'' at the end;
(C) in clause (v), by striking the period and
inserting ``; and''; and
(D) by adding at the end the following:
``(vi) describe a well-being plan for each
child in the family.''.
(2) Deadline for completion of plan.--Section 408(b)(2)(B)
(42 U.S.C. 608(b)(2)(B)) is amended by striking ``individual--
'' and all that follows and inserting ``individual within 90
days after the individual is determined eligible for the
assistance.''.
(3) Sanction for failure of state to develop plan.--Section
409(a) (42 U.S.C. 609(a)), as amended by section 903(c)(2)(A)
of this title, is amended by adding at the end the following:
``(16) Penalty for failure of state to develop required
individual responsibility plan.--
``(A) In general.--If the Secretary determines that
a State to which a grant is made under section 403 in a
fiscal year has violated section 408(b)(2) during the
fiscal year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal
to not more than 5 percent of the State family
assistance grant.
``(B) Penalty based on severity of failure.--The
Secretary shall impose reductions under subparagraph
(A) with respect to a fiscal year based on the degree
of noncompliance.''.
(4) Conforming amendment.--Section 408(b) (42 U.S.C.
608(b)) is amended by striking paragraph (4).
(c) Modified Employability Plans for Certain Individuals With
Disabilities.--Section 408 (42 U.S.C. 608) is amended by adding at the
end the following:
``(h) Authority To Develop Modified Employability Plan for a
Recipient of Assistance With, or Caring for a Family Member With, a
Disability.--
``(1) In general.--A State may develop a modified
employability plan for a recipient of assistance under the
State program funded under this part--
``(A) who--
``(i) is a work-eligible individual (as
defined in section 407(a)(2)); and
``(ii) has been determined by a qualified
medical, mental health, addiction, or social
services professional (as determined by the
State) to have a disability; or
``(B) who is caring for a family member with a
disability (as so determined).
``(2) Contents of plan.--The modified employability plan
shall--
``(A) include a determination that, because of the
disability of the recipient or the individual for whom
the recipient is caring, reasonable modification of
work activities, hourly participation requirements, or
both, is needed in order for the recipient to
participate in the activities;
``(B) describe the modified work activities in
which the recipient is required to participate;
``(C) specify the number of hours per week for
which the recipient is required to participate in the
modified work activities, based on an evaluation by the
State of the circumstances of the family;
``(D) describe the services, supports, and
modifications that the State will provide to the
recipient or the family of the recipient;
``(E) be developed in cooperation with the
recipient; and
``(F) be reviewed not less often than every 6
months.
``(3) Definitions.--In this subsection:
``(A) Disability.--The term `disability' means a
mental or physical impairment, including substance
abuse or addiction, that--
``(i) constitutes or results in a
substantial impediment to employment; or
``(ii) substantially limits 1 or more major
life activities.
``(B) Modified work activities.--The term `modified
work activities' means activities which the State has
determined will help the recipient become
employable.''.
(d) Sanctions.--
(1) General sanction provisions.--
(A) Prohibition on imposing lifetime or full family
sanction.--
(i) Prohibition.--Section 408(a) (42 U.S.C.
608(a)) is amended by adding at the end the
following:
``(13) Prohibition on imposing lifetime or full family
sanction.--A State to which a grant is made under section 403
shall not impose a lifetime prohibition on the provision of
assistance to any individual or family under 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)) on
the basis of the failure of a member of the family to comply
with a program requirement.''.
(ii) Penalty.--Section 409(a) (42 U.S.C.
609), as amended by section 903(c)(2)(A) of
this title and subsection (b)(3) of this
section, is amended by adding at the end the
following:
``(17) Penalty for imposing lifetime or full family
sanction.--If the Secretary determines that a State to which a
grant is made under section 403 in a fiscal year has violated
section 408(a)(13) during the fiscal year, the Secretary shall
reduce the grant payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by an amount equal
to 5 percent of the State family assistance grant.''.
(B) Due process protections.--
(i) In general.--Section 408(a) (42 U.S.C.
608(a)), as amended by subparagraph (A)(i) of
this paragraph, is amended by adding at the end
the following:
``(14) Sanction procedures.--
``(A) Pre-sanction review process.--Before imposing
a sanction against an individual or family receiving
assistance under 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))
for failure to comply with program requirements, the
State shall take the following steps:
``(i) Provide or send notice to the
individual or family, and, if the recipient's
native language is not English, through a
culturally competent written or verbal
translation, of the following information:
``(I) The specific reason for the
proposed sanction.
``(II) The amount of the proposed
sanction.
``(III) The length of time during
which the proposed sanction would be in
effect.
``(IV) The steps required to come
into compliance or to show good cause
for noncompliance.
``(V) That the agency will provide
assistance to help the individual
demonstrate good cause for
noncompliance, or come into compliance
with program requirements.
``(VI) That the individual may
appeal the determination to impose a
sanction, and the steps that the
individual must take to pursue such an
appeal.
``(ii)(I) Ensure that, subject to clause
(iii)--
``(aa) an individual, other than
the individual who determined that a
sanction be imposed, will review the
determination and have the authority to
take the actions described in subclause
(II); and
``(bb) the individual or family
against whom the sanction is to be
imposed shall be afforded the
opportunity to meet with the individual
who is reviewing the determination to
impose the sanction.
``(II) The action described in this
subclause are the following:
``(aa) Modify the determination to
impose a sanction.
``(bb) Determine that there was
good cause for the failure to comply.
``(cc) Recommend modifications to
the individual responsibility or
employment plan of an individual.
``(dd) Make such other
determinations and take such other
actions as may be appropriate.
``(iii) The review required under clause
(ii) shall include consideration of the
following:
``(I) To the extent applicable,
whether barriers to compliance exist,
such as a physical or mental impairment
(including mental illness, substance
abuse, mental retardation, or a
learning disability), domestic or
sexual violence, limited proficiency in
English, limited literacy,
homelessness, or the need to care for a
child with a disability or health
condition, that contributed to the
noncompliance.
``(II) Whether the noncompliance
resulted from failure to receive or
have access to services identified as
necessary in an individual
responsibility or employment plan.
``(III) Whether changes to the
individual responsibility or employment
plan of an individual should be made in
order for the individual to come into
compliance.
``(IV) Whether there is good cause
for any noncompliance.
``(V) Whether the sanction policies
of the State have been applied
properly.
``(B) Sanction follow-up requirements.--If a State
imposes a sanction on a family or individual for
failing to comply with program requirements, the State
shall--
``(i) provide or send notice to the
individual or family, in language calculated to
be understood by the individual or family, and,
if the individual's or family's native language
is not English, through a culturally competent
translation, of the reason for the sanction and
the steps the individual or family must take to
end the sanction;
``(ii) resume full assistance, services, or
benefits to the individual or family under the
program (if the individual or family is
otherwise eligible for the assistance,
services, or benefits) once the individual who
was not in compliance with program requirements
that led to the sanction complies with the
requirements for a reasonable period of time,
as determined by the State and subject to State
discretion to reduce the period; and
``(iii) if the State has not resumed
providing the assistance, services, or benefits
as of the end of the 120-day period that begins
on the date that is 60 days after the date on
which the sanction was imposed, provide notice
to the individual or family, in language
calculated to be understood by the individual
or family, of the steps the individual or
family must take to end the sanction, and of
the availability of assistance to come into
compliance or demonstrate good cause for
noncompliance.
``(C) Notice to evicted persons.--The State shall
make a reasonable effort to provide to an individual or
family that has been evicted from a residence for
failure to pay rent or as a result of another problem
related to poverty, any notice required by this
paragraph to be provided to the individual or
family.''.
(ii) Penalty.--Section 409(a) (42 U.S.C.
609(a)), as amended by section 903(c)(2)(A) of
this title, subsection (b)(3) of this section,
and subparagraph (A)(ii) of this paragraph, is
amended by adding at the end the following:
``(18) Penalty for failure to follow sanction procedures.--
``(A) In general.--If the Secretary determines that
a State to which a grant is made under section 403 in a
fiscal year has violated section 408(a)(14) during the
fiscal year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal
to not more than 5 percent of the State family
assistance grant.
``(B) Penalty based on severity of failure.--The
Secretary shall impose reductions under subparagraph
(A) with respect to a fiscal year based on the degree
of noncompliance.''.
(iii) State plan requirement to describe
how states will notify applicants and
recipients of their rights under the program
and of potential benefits and services
available under the program.--Section
402(a)(1)(B)(iii) (42 U.S.C. 602(a)(1)(B)(iii))
is amended by inserting ``, and will notify
applicants and recipients of assistance under
the program of the rights of individuals under
all laws applicable to program activities and
of all potential benefits and services
available under the program'' before the
period.
(2) Modifications to work sanction.--
(A) Elimination of full family sanction; state
required to establish certain good cause exceptions.--
Section 407(e)(1) (42 U.S.C. 607(e)(1)) is amended--
(i) by striking ``shall--'' and all that
follows through subparagraph (B) and inserting
``shall reduce the amount of assistance
otherwise payable to the family pro rata with
respect to any period during a month in which
the individual so refuses,''; and
(ii) by striking ``may establish'' and
inserting the following ``shall establish,
which shall include the decline of an offer of
employment at a wage less than the greater of
the applicable Federal or State minimum wage,
or 80 percent of the wage that would have
governed had the minimum hourly rate under the
Fair Labor Standards Act been applicable to the
offer of employment, at a site subject to a
strike or lockout at the time of refusal, or
for medical reasons or a lack of sufficient
physical strength or stamina''.
(B) Prohibition on sanctioning individual for
failure to engage in work if individual has a child
under age 6 months or if failure results from inability
to secure child care or after-school arrangements for a
child under age 13.--Section 407(e)(2) (42 U.S.C.
607(e)(2)) is amended by striking ``refusal'' and all
that follows and inserting ``failure of an individual
to engage in work required in accordance with this
section if--
``(A) the individual is a single custodial parent
caring for a child who has not attained 6 months of
age; or
``(B) the individual is the single custodial parent
caring for a child who has not attained 13 years of
age, and the failure resulted from the inability of the
individual to secure child care or after-school
arrangements for the child''.
(3) Modifications to child support sanction.--Section
408(a)(2) (42 U.S.C. 608(a)(2)) is amended by striking
``State--'' and all that follows and inserting ``State shall
deduct from the assistance that would otherwise be provided to
the family of the individual under the State program funded
under this part an amount equal to 25 percent of the amount of
the assistance.''.
(e) Related State Plan Requirement.--Section 402(a) (42 U.S.C.
602(a)) is amended by adding at the end the following:
``(8) Certification that employment assessments and
sanction reviews will be conducted by competent personnel.--A
certification by the chief executive officer of the State that
the employment assessments conducted pursuant to section
408(b)(1) and the sanction reviews conducted pursuant to
section 408(a)(14)(A) will be conducted by personnel who have
sufficient education, training, and professional competence to
do so, which shall include information on the education,
training, and professional competence that State will require
of the personnel.''.
SEC. 906. PROHIBITION ON IMPOSING LIMIT OF LESS THAN 60 MONTHS ON
DURATION OF ASSISTANCE.
(a) Prohibition.--
(1) In general.--Section 408(a)(7) (42 U.S.C. 608(a)(7)) is
amended--
(A) in the paragraph heading, by striking ``No
assistance for more than 5 years'' and inserting
``Durational limits on assistance'';
(B) in the heading for subparagraph (A), by
striking ``In general'' and inserting ``No assistance
for more than 5 years''; and
(C) by adding at the end the following:
``(H) Prohibition on limiting duration of
assistance to less than 60 months.--A State to which a
grant is made under section 403 shall not impose a
limit of less than 60 months on the duration for which
a family may be provided assistance from Federal or
State funds under 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)).''.
(2) Conforming amendment.--The heading of section 409(a)(9)
(42 U.S.C. 609(a)(9)) is amended by striking ``5-year limit''
and inserting ``rules governing durational limits''.
(b) Requirement To Conduct Outreach To Inform Potentially Eligible
Families of Elimination of Durational Limit on Assistance of Less Than
60 Months.--
(1) In general.--Section 408(a) (42 U.S.C. 608(a)), as
amended by section 905(d)(1) of this title, is amended by
adding at the end the following:
``(15) Requirement to conduct outreach to inform
potentially eligible recipients of assistance of elimination of
durational limit on assistance of less than 60 months.--A State
to which a grant is made under section 403 for a fiscal year
that, before the effective date of this paragraph, denied
assistance under the State program funded under this part or
any other State program funded by qualified State expenditures
(as defined in section 409(a)(7)(B)(i)) to an individual or
family on the basis of a durational limit on the assistance
that was imposed other than under section 408(a)(7) shall
conduct outreach to inform individuals and families who were so
denied that they may be eligible for additional months of the
assistance.''.
(2) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended
by sections 903(c)(2)(A) and 905(d)(1) of this title, is
amended by adding at the end the following:
``(19) Failure to conduct outreach to inform potentially
eligible recipients of assistance of elimination of durational
limit on assistance of less than 60 months.--If the Secretary
determines that a State to which a grant is made under section
403 in a fiscal year has violated section 408(a)(15) during the
fiscal year, the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to 5 percent of the
State family assistance grant.''.
(c) State Plan Required To Include Description of How Potentially
Eligible Recipients Will Be Informed of Elimination of Durational Limit
on Assistance of Less Than 60 Months.--Section 402(a)(1)(B) (42 U.S.C.
602(a)(1)(B)) is amended by adding at the end the following:
``(vi) In the case of a State that, before
the date this clause takes effect, denied
assistance under the program to an individual
or family on the basis of a durational limit on
the assistance that was imposed other than
under section 408(a)(7), the document shall
describe how the State intends to inform the
individuals and families who were so denied
that they may be eligible for additional months
of the assistance.''.
SEC. 907. RESPONSE OF TANF PROGRAM TO ECONOMIC RECESSIONS.
(a) Inapplicability of Durational Limit on Assistance.--Section
408(a)(7) (42 U.S.C. 608(a)(7)), as amended by section 906(a)(1)(C) of
this title, is amended by adding at the end the following:
``(I) Inapplicability of durational limit during
recession.--Subparagraph (A) shall not apply in a State
during any month which is in a high unemployment period
with respect to the State.
``(J) Disregard of assistance provided during
recession.--In determining the number of months for
which an adult has received assistance under a State or
tribal program funded under this part or any other
State program funded by qualified State expenditures
(as defined in section 409(a)(7)(B)(i)), the State or
tribe shall disregard any month which is in a high
unemployment period with respect to the State.
``(K) 6-month grace period required after
recession.--Subparagraph (A) shall not apply to a
recipient of assistance under the State program funded
under this part or any other State program funded by
qualified State expenditures (as defined in section
409(a)(7)(B)(i)) during the 6-month period that begins
with the month immediately following a high
unemployment period with respect to the State if the
recipient received the assistance for the last month of
the period.''.
(b) Requirement To Conduct Outreach To Inform Potentially Eligible
Families of Suspension of Durational Limit on Assistance.--
(1) In general.--Section 408(a) (42 U.S.C. 608(a)), as
amended by sections 905(d)(1) and 906(b)(1) of this title, is
amended by adding at the end the following:
``(16) Requirement to conduct outreach to inform
potentially eligible recipients of assistance of suspension of
durational limit on assistance.--In each month which is a high
unemployment period with respect to a State to which a grant is
made under section 403 for a fiscal year, the State shall
conduct outreach to inform individuals and families who are
potentially eligible for assistance under the State program
funded under this part or any other State program funded by
qualified State expenditures (as defined in section
409(a)(7)(B)(i)) of the suspension of any durational limit on
assistance under the program.''.
(2) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended
by sections 903(c)(2)(A), 905(d)(1), and 906(b)(2), is amended
by adding at the end the following:
``(20) Failure to conduct outreach to inform potentially
eligible recipients of assistance of suspension of durational
limit on assistance.--If the Secretary determines that a State
to which a grant is made under section 403 in a fiscal year has
violated section 408(a)(16) during the fiscal year, the
Secretary shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal year by
an amount equal to 5 percent of the State family assistance
grant.''.
(c) State Plan Required To Include Description of How Potentially
Eligible Recipients Will Be Informed of Suspension of Time Limits
During Recession.--Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as
amended by section 906(c) of this title, is amended by adding at the
end the following:
``(vii) The document shall describe how the
State intends to inform potentially eligible
recipients of assistance under the program of
the suspension of durational limits on the
assistance during a high unemployment period
with respect to the State.''.
(d) High Unemployment Period Defined.--Section 419 (42 U.S.C. 619)
is amended by adding at the end the following:
``(6) High unemployment period defined.--The term `high
unemployment period' means, with respect to a State, a period
of 1 or more consecutive months if the average rate of total
unemployment in the State (seasonally adjusted) for the period
consisting of the then most recent 3 months for which data for
all States are published equals or exceeds 6.5 percent.''.
SEC. 908. REQUIREMENT THAT STATES USE MERIT-BASED SYSTEM IN
ADMINISTRATION OF TANF PROGRAMS.
(a) Program Requirement.--Section 408(a) (42 U.S.C. 608(a)), as
amended by sections 905(d)(1), 906(b)(1), and 907(b)(1) of this title,
is amended by adding at the end the following:
``(17) Requirement to use merit-based system in
administering program.--A State to which a grant is made under
section 403 shall establish and maintain personnel standards
through a merit-based system, in administering the State
program funded under this part and any other State program
funded by qualified State expenditures (as defined in section
409(a)(7)(B)(i)).''.
(b) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by
sections 903(c)(2)(A), 905(d)(1), 906(b)(2), and 907(b)(2) of this
title, is amended by adding at the end the following:
``(21) Penalty for failure to use merit-based system in
administering program.--If the Secretary determines that a
State to which a grant is made under section 403 in a fiscal
year has violated section 408(a)(17) during the fiscal year,
the Secretary shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal year by
an amount equal to 5 percent of the State family assistance
grant.''.
SEC. 909. BAN ON USING FEDERAL TANF FUNDS TO REPLACE STATE AND LOCAL
SPENDING THAT DOES NOT MEET THE DEFINITION OF QUALIFIED
STATE EXPENDITURES.
(a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)), as amended by
sections 905(d)(1), 906(b)(1), 907(b)(1), and 908(a) of this title, is
amended by adding at the end the following:
``(18) Ban on using federal tanf funds to replace state or
local spending that is not a qualified state expenditure.--A
State to which a grant is made under section 403, and a sub-
State entity that receives funds from such a grant, shall not
expend any part of the grant funds to supplant State or local
spending for benefits or services which are not qualified State
expenditures (within the meaning of section
409(a)(7)(B)(i)).''.
(b) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by
sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 907(b)(2), and 908(b) of
this title, is amended by adding at the end the following:
``(22) Use of federal tanf funds to replace state or local
spending that is not a qualified state expenditure.--If the
Secretary determines that a State to which a grant is made
under section 403 in a fiscal year has violated section
408(a)(18) during the fiscal year, the Secretary shall reduce
the grant payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal to 5
percent of the State family assistance grant.''.
SEC. 910. TANF ASSISTANCE TO MEET BASIC FAMILY ECONOMIC NEEDS.
(a) State Plan Requirement.--Section 402(a)(1)(B) (42 U.S.C.
602(a)(1)(B)), as amended by sections 906(c) and 907(d) of this title,
is amended by adding at the end the following:
``(viii) Family budget provisions.--The
document shall set forth a family budget of a
dollar amount sufficient to meet the basic
economic needs (including food, clothing,
shelter, utilities, household goods, personal
care items, and general incidental expenses) of
a family, how the family budget is adjusted for
family size, the method used to estimate the
family budget (including a statement of the
relationship between shelter and utility costs
and the fair market rents in localities in the
State), and the relationship between the amount
of assistance provided to each family under the
program and the amount of the family budget for
the family.''.
(b) Program Requirement.--Section 408(a) (42 U.S.C. 608(a)), as
amended by sections 905(d)(1), 906(b)(1), 907(b)(1), 908(a), and 909(a)
of this title, is amended by adding at the end the following:
``(19) Requirement that amount of assistance meet basic
economic needs.--A State to which a grant is made under section
403 shall ensure that the total amount of assistance provided
to a family under the State program funded under this part and
all programs funded with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)) for which the family is
eligible is sufficient to meet the basic economic needs of the
family, taking into account all earned and unearned income of
the family and an amount not to exceed the value of the
supplemental nutrition assistance benefits provided to the
family under the Food and Nutrition Act of 2008.''.
(c) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by
sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 907(b)(2), 908(b), and
909(b) of this title, is amended by adding at the end the following:
``(23) Penalty for failure of state tanf assistance to meet
basic economic needs of a recipient family.--If the Secretary
determines that a State to which a grant is made under section
403 in a fiscal year has violated section 408(a)(19) during the
fiscal year, the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to 5 percent of the
State family assistance grant.''.
SEC. 911. STATE PLANS AND REPORTS ON CHILD POVERTY.
(a) Child Poverty Reduction as a Purpose of the TANF Program.--
Section 401(a)(1) (42 U.S.C. 601(a)(1)) is amended by redesignating
paragraphs (1) through (4) as paragraphs (2) through (5), respectively,
and by inserting before paragraph (2) (as so redesignated) the
following:
``(1) reduce poverty among children;''.
(b) State Plan Provisions.--
(1) Matters required to be addressed.--Section 402(a)(1)(A)
(42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the
following:
``(ix) Goals and methods for reducing child
poverty.--Reduce child poverty using Federal
funds provided under this part and State funds,
including establishing numerical goals for
reducing child poverty.
``(x) Goals and tracking of work
outcomes.--Track work-related outcomes for
recipients of assistance under the program,
such as employment entries, wages, and job
retention, including establishing numerical
goals for work-related outcomes for recipients.
``(xi) Provide preventative services to
families at-risk of abuse or neglect.--Provide
benefits and services to families at-risk of
having their children removed from the home
because of abuse and neglect, using Federal
funds provided under this part and State funds.
``(xii) How noncustodial parents will be
served.--Serve noncustodial parents, using
Federal funds provided under this part and
State funds.''.
(2) Public availability.--Section 402(c) (42 U.S.C. 602(c))
is amended to read as follows:
``(c) Public Availability.--
``(1) In general.--The State shall make available to the
public, including by posting on a public website of the State
or another appropriate website--
``(A) each draft of any plan or plan amendment to
be submitted by the State under this section, for at
least 45 days before the submission; and
``(B) any such plan or amendment certified by the
Secretary to be complete.
``(2) Procedures.--The State shall establish procedures to
receive and respond to comments from the public, private sector
organizations, and local governments on any draft referred to
in paragraph (1).''.
(c) Annual Performance Report.--Section 411 (42 U.S.C. 611) is
amended by adding at the end the following:
``(e) Annual Performance Report by States.--Not later than December
31 of each year, each eligible State shall submit to the Secretary (in
accordance with such form and content rules as the Secretary, in
consultation with the National Governor's Association, National
Association of State Legislatures, and the American Public Human
Services Association, develops) a report on the following aspects of
the State program funded under this part in the preceding fiscal year:
``(1) Whether the State met the child poverty reduction
goals set forth in the State plan. This part of the report
shall include a discussion of the factors, including benefits,
services, and activities funded with Federal funds provided
under this part or State funds, which contributed to the
meeting of, or the failure to meet, the goals.
``(2) Whether the work programs of the State were effective
in meeting the objectives and numerical goals of the State
plan. This part of the report shall include a discussion of
data derived from the tracking of recipients, including--
``(A) the number of families that left the State
program funded under this part;
``(B) the employment rate for those who left the
program in each calendar quarter;
``(C) the wage rates of those who left the program,
including the percentage of leavers who, in each
calendar quarter, earned an amount equal to at least 50
percent of the average wage then paid in the State; and
``(D) the employment outcomes of those who left the
program because of a durational limit on assistance,
reported at 6 months, 12 months, 24 months, and 36
months after leaving the program.
The Secretary shall provide States with technical assistance in
preparing this part of the report, including by providing
States with data from the National Directory of New Hires.
``(3) Whether the State has been effective in providing
benefits and services under the program to persons with
disabilities. This part of the report shall include a report on
recipients of assistance under the State program funded under
this part who participated in work activities (as defined in
section 407(d)) pursuant to a modified employability plan due
to disability, including the following:
``(A) The aggregate number of recipients with
modified employability plans due to a disability.
``(B) The percentage of all recipients with
modified employability plans who substantially complied
with activities set forth in the plans each month of
the fiscal year.
``(C) Information regarding the most prevalent
types of physical and mental impairments that provided
the basis for the disability determinations.
``(D) The percentage of cases with a modified
employability plan in which the recipient had a
disability, was caring for a child with a disability,
or was caring for another family member with a
disability.
``(E) A description of the most prevalent types of
modification in work activities or hours of
participation that were included in the modified
employability plans.
``(F) A description of the qualifications of the
staff who determined whether individuals had a
disability, of the staff who determined that
individuals needed modifications to their work
requirements, and of the staff who developed the
modified employability plans.
``(4) The effectiveness of the benefits and services
provided under the State program in reducing the number of
children removed from their homes because of abuse and neglect.
This part of the report shall include an analysis which
includes the following:
``(A) The number of families provided the benefits
or services that were at risk of having their children
removed from the home.
``(B) The number of families served by the program
that had 1 or more children removed from the home
because of abuse or neglect.
``(5) An analysis of the extent to which the benefits and
services under the State program were provided to noncustodial
parents.
``(6) How funds provided to the State under this part, with
a separate accounting for funds provided under section
403(a)(3) and funds provided under section 403(b), were used to
serve areas of the State with the greatest need (as referred to
in section 402(a)(1)(A)(i)). This part of the report shall
include supporting data.''.
(d) Annual Report to Congress on the Efforts of State Programs To
Promote and Support Employment for Individuals With Disabilities.--
Section 411 (42 U.S.C. 611), as amended by subsection (c) of this
section, is amended by adding at the end the following:
``(f) Report by Secretary.--Not later than July 31 of each fiscal
year, the Secretary shall submit to the Congress a report, entitled
`Efforts in State TANF Programs to Promote and Support Employment for
Individuals with Disabilities', that includes information on State
efforts to engage individuals with disabilities in work activities
during the preceding fiscal year. The report shall include the
following information:
``(1) For each State, the number of individuals for whom
the State has developed a modified employability plan.
``(2) The types of physical and mental impairments that
provided the basis for the disability determination, and
whether the individual with the disability was an adult
recipient or minor child head of household, a child, or a non-
recipient family member.
``(3) The types of modifications that States have included
in modified employability plans.
``(4) The extent to which individuals with a modified
employability plan are participating in work activities.
``(5) For each State, an analysis of the extent to which
the option to establish modified employability plans was a
factor in the State achieving or not achieving the minimum
participation rate required by section 407(a).''.
(e) Report to Congress on Legislative Options To Reward States With
High Employment Rates and High Rates of Employment at Good Wages.--
Within 4 years after the effective date of this section, the Secretary
of Health and Human Services shall submit to the Congress a report that
sets forth options for the enactment of legislation to provide
financial or other rewards to States that have high rates of employment
and high rates of employment at good wages.
SEC. 912. REQUIREMENT THAT STATES ADOPT STANDARDS AND PROCEDURES TO
ADDRESS DOMESTIC AND SEXUAL VIOLENCE AMONG TANF
RECIPIENTS.
(a) In General.--Section 402(a)(7) (42 U.S.C. 602(a)(7)) is
amended--
(1) by striking the paragraph heading and inserting
``Certification of standards and procedures regarding domestic
and sexual violence'';
(2) by striking subparagraph (A) and inserting the
following:
``(A) In general.--A certification by the chief
executive officer of the State that the State has
established and is enforcing standards and procedures
to ensure the right and entitlement of victims of
domestic or sexual violence (notwithstanding section
401(b)) seeking or receiving assistance under the State
program funded under this part or any other State
program funded by qualified State expenditures (as
defined in section 409(a)(7)(B)(i))--
``(i) to be screened and identified while
maintaining the confidentiality of the victims;
``(ii) to be referred to counseling and
supportive services;
``(iii) to be granted a waiver, pursuant to
a determination of good cause, of program
requirements such as time limits (for so long
as necessary), residency requirements, child
support cooperation requirements, and family
cap provisions, in cases where compliance with
the requirements would make it more difficult
for the victims to escape domestic or sexual
violence or unfairly penalize the victims or
other individuals who are at risk of further
domestic or sexual violence;
``(iv) to apply to participate in the
program on the same day the victim appears in
person in a program office during office hours;
``(v) to have an application that contains
the name, address, and signature of the victim
considered to be filed on the date the
application is submitted;
``(vi) to receive at the time of
application a clear, written statement
explaining what the victim must do to cooperate
in obtaining verification and otherwise
completing the application process; and
``(vii) if the victim has completed the
application process, to have the eligibility of
the victim for assistance determined promptly,
and to be provided assistance retroactive to
the application date if determined eligible
within 30 days after the application date.'';
and
(3) in subparagraph (B)--
(A) in the subparagraph heading, by inserting ``or
sexual'' after ``Domestic''; and
(B) in the text, by inserting ``or sexual'' after
``domestic''.
(b) Report to the Congress on Best Practices of States.--Section
413 (42 U.S.C. 613) is amended by adding at the end the following:
``(k) Report to Congress on Best Practices of States in Addressing
Domestic and Sexual Violence Suffered by TANF Recipients.--Every 4
years, the Secretary shall prepare and submit to the Congress a report
which examines the practices of States in implementing section
402(a)(7), and identifies the best practices used to do so.''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2014.
SEC. 913. CHILD CARE ENTITLEMENT.
(a) Replacement of Requirement That Portion of Funds Be Used for
Certain Populations With Child Care Guarantee.--Section 418(b)(2) (42
U.S.C. 618(b)(2)) is amended to read as follows:
``(2) Child care to be guaranteed for certain
populations.--As a condition of receiving funds under this
section, a State shall guarantee the provision of child care
services to--
``(A) each recipient of assistance under the State
program funded under this part or under a State program
funded with qualified State expenditures (as defined in
section 409(a)(7)(B)(i)) of this Act, and to each work-
eligible individual (as defined in section 407(a)(2) of
this Act), for any period in which the recipient or
individual is--
``(i) participating in a work activity (as
defined in section 407(d) of this Act);
``(ii) employed, and in a family the total
income of which does not exceed 250 percent of
the poverty line (within the meaning of section
673(2) of the Omnibus Budget Reconciliation Act
of 1981, including any revision required by
such section applicable to a family of the size
involved); or
``(iii) engaged in employment subsidized by
the State; or
``(B) each individual who is a former recipient of
assistance under such a program or a former work-
eligible individual, for any portion of the 24-month
period, beginning with the date the individual left the
program involved, in which the individual is employed
and in a family that meets the income requirement of
subparagraph (A)(ii).''.
(b) Elimination of State Caps.--Section 418(a) (42 U.S.C. 618(a))
is amended--
(1) in paragraph (2)--
(A) by striking subparagraphs (B) and (D) and
redesignating subparagraph (C) as subparagraph (B); and
(B) in subparagraph (B) (as so redesignated), by
striking ``the lesser of the State's allotment under
subparagraph (B) or''; and
(2) in paragraph (5), by striking ``(2)(C)'' and inserting
``(2)(B)''.
(c) Open-Ended Entitlement.--Section 418(a) (42 U.S.C. 618(a)) is
amended--
(1) in paragraph (1), by striking ``Subject to the amount
appropriated under paragraph (3), each'' and inserting
``Each''; and
(2) in paragraph (3), by striking ``appropriated--'' and
all that follows and inserting ``appropriated such sums as are
necessary to carry out this section for each fiscal year.''.
(d) Use of Funds in Accordance With Child Care and Development
Block Grant Act of 1990 Except as Required by Child Care Guarantee.--
Section 418(c) (42 U.S.C. 618(c)) is amended by inserting ``except to
the extent that such a requirement or limitation would interfere with
the provision of child care services required by subsection (b)(2)''
before the period.
SEC. 914. CHILD SUPPORT ENFORCEMENT.
(a) Elimination of Ban on Providing Assistance to Families Not
Assigning Certain Support Rights to the State.--
(1) In general.--Section 408(a) (42 U.S.C. 608(a)) is
amended by striking paragraph (3).
(2) Conforming amendments.--The following provisions are
each amended by inserting after ``section 408(a)(3)'' the
following: ``(as in effect before the effective date of the
amendments made by section 10(a) of the Rewriting to Improve
and Secure an Exit Out of Poverty Act took effect)'':
(A) Section 452(a)(10)(C) (42 U.S.C.
652(a)(10)(C)).
(B) Section 452(h) (42 U.S.C. 652(h)).
(C) Section 454(5)(A) (42 U.S.C. 654(5)(A)).
(D) Section 456(a)(1) (42 U.S.C. 656(a)(1)).
(E) Section 457(a)(2)(B)(i) (42 U.S.C.
657(a)(2)(B)(i)).
(F) Section 457(a)(3)(A) (42 U.S.C. 657(a)(3)(A)).
(G) Section 457(a)(3)(B) (42 U.S.C. 657(a)(3)(B)).
(H) Section 464(a)(1) (42 U.S.C. 664(a)(1)).
(I) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)).
(b) Requirement That All Child Support Collected on Behalf of a
Child in a Family Receiving TANF Be Distributed to the Family.--
(1) In general.--Section 457 (42 U.S.C. 657) is amended--
(A) in subsection (c)(1), by striking ``means--''
and all that follows through ``(B) foster'' and
inserting ``means foster''; and
(B) by adding at the end the following:
``(f) Notwithstanding the preceding provisions of this section, all
amounts collected by a State as child support on behalf of a child in a
family that is receiving assistance under the State program funded
under part A or under the State plan approved under part A of this
title (as in effect on the day before the date of the enactment of the
Personal Responsibility and Work Opportunity Reconciliation Act of
1996) shall be distributed to the family.''.
(2) Conforming amendments.--Section 458(b)(5)(C)(i)(I) (42
U.S.C. 658(b)(5)(C)(i)(I)) is amended--
(A) by inserting ``is collected on behalf of a
child described in section 457(f) or'' after
``involved''; and
(B) by striking ``A or''.
SEC. 915. STATE OPTION TO EXTEND ELIGIBILITY FOR ASSISTANCE TO CHILDREN
THROUGH AGE 21; PROHIBITION ON CONSIDERING FINANCIAL AID
TIED TO EDUCATION OF CHILD IN DETERMINING ELIGIBILITY
FOR, OR AMOUNT OF ASSISTANCE; PROHIBITION ON IMPOSING
ADDITIONAL REQUIREMENTS BASED ON EDUCATIONAL ENROLLMENT
OF CHILD.
(a) State Option To Extend TANF to Children Under Age 22.--Section
419(2) (42 U.S.C. 619(2)) is amended--
(1) by striking ``or'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) at the option of the State, has not attained 22 years
of age.''.
(b) Ban on Considering Financial Aid Tied to Education of Child in
Determining Eligibility for, or Amount of Assistance; Ban on Imposing
Additional Requirements Based on Educational Enrollment of Child.--
(1) Prohibitions.--Section 408(a) (42 U.S.C. 608(a)), as
amended by sections 903(c)(2)(A), 905(d)(1), 906(b)(1),
907(b)(1), 908(a), 909(a), and 910(b) of this title, is amended
by adding at the end the following:
``(20) Ban on considering financial aid tied to education
of child in determining eligibility for, or amount of
assistance; ban on imposing additional requirements based on
educational enrollment of child.--A State to which a grant is
made under section 403 for a fiscal year shall not--
``(A) consider financial aid tied to the training,
school attendance, or postsecondary school attendance
of a minor child in determining that the eligibility of
the family of the child for, or the amount of
assistance to be provided to the family, under the
State program funded under this part or any other State
program funded by qualified State expenditures (as
defined in section 409(a)(7)(B)(i)); or
``(B) impose additional requirements on a family
solely because the family includes a minor child who is
enrolled in a training program, school, or post-
secondary educational institution.''.
(2) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by
sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 907(b)(2), 908(b),
909(b), and 910(c) of this title, is amended by adding at the
end the following:
``(24) Considering educational enrollment of child or of
financial aid tied to education of child.--If the Secretary
determines that a State to which a grant is made under section
403 in a fiscal year has violated section 408(a)(20) during the
fiscal year, the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to 5 percent of the
State family assistance grant.''.
SEC. 916. ELIMINATION OF CERTAIN OTHER BARS TO TANF ASSISTANCE.
(a) Bar on Assistance for Persons Convicted of Drug Felonies.--
Section 115 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (21 U.S.C. 862a) is amended--
(1) in the section heading by striking ``assistance and''
and inserting ``supplemental nutrition assistance'';
(2) in subsection (a), by striking ``for--'' and all that
follows through ``(2) benefits'' and inserting ``for
benefits'';
(3) in subsection (b), by striking all through ``The amount
of benefits'' and inserting the following:
``(b) Effects on Benefits for Others.--The amount of benefits'';
(4) in subsection (c), by striking ``assistance or''; and
(5) in subsection (e), by striking ``it--'' and all that
follows through ``in section 3(s)'' and inserting ``it in
section 3(s)''.
(b) Bar on Assistance for Unwed Teen Parents Not in School.--
Section 408(a) (42 U.S.C. 608(a)) is amended by striking paragraph (4).
(c) Bar on Assistance for Teens Not in an Adult-Supervised Living
Arrangement.--Section 408(a) (42 U.S.C. 608(a)) is amended by striking
paragraph (5).
(d) Redesignation of Provisions.--
(1) In general.--Section 408(a) (42 U.S.C. 608(a)), as
amended by the preceding provisions of this title, is amended
by redesignating paragraphs (6) through (20) as paragraphs (3)
through (17), respectively.
(2) Conforming amendments.--
(A) Section 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B))
is amended by striking ``408(a)(7)(C)(iii)'' and
inserting ``408(a)(4)(C)(iii)''.
(B) Section 403(a)(5)(C)(ii)(II) (42 U.S.C.
603(a)(5)(C)(ii)(II)) is amended by striking
``408(a)(7)(C)'' and inserting ``408(a)(4)(C)''.
(C) Section 403(a)(5)(C)(v) (42 U.S.C.
603(a)(5)(C)(v)) is amended by striking ``408(a)(7)''
and inserting ``408(a)(4)''.
(D) Section 409(a)(7)(B)(i)(IV) (42 U.S.C.
609(a)(7)(B)(i)(IV)) is amended by striking
``408(a)(7)'' and inserting ``408(a)(4)''.
(E) Section 409(a)(9) (42 U.S.C. 609(a)(9)) is
amended by striking ``408(a)(7)'' and inserting
``408(a)(4)''.
(F) Section 409(a)(17), as added by section
905(d)(1)(A)(ii) of this title, is amended by striking
``408(a)(13)'' and inserting ``408(a)(10)''.
(G) Section 409(a)(18), as added by section
905(d)(1)(A)(ii) of this title, is amended by striking
``408(a)(14)'' and inserting ``408(a)(11)''.
(H) Section 409(a)(19), as added by section
906(b)(2) of this title, is amended by striking
``408(a)(15)'' and inserting ``408(a)(12)''.
(I) Section 409(a)(20), as added by section
907(b)(2) of this title, is amended by striking
``408(a)(16)'' and inserting ``408(a)(13)''.
(J) Section 409(a)(21), as added by section 908(b)
of this title, is amended by striking ``408(a)(17)''
and inserting ``408(a)(14)''.
(K) Section 409(a)(22), as added by section 909(b)
of this title, is amended by striking ``408(a)(18)''
and inserting ``408(a)(15)''.
(L) Section 409(a)(23), as added by section 910(c)
of this title, is amended by striking ``408(a)(19)''
and inserting ``408(a)(16)''.
(M) Section 409(a)(24), as added by section
915(b)(2) of this title, is amended by striking
``408(a)(20)'' and inserting ``408(a)(17)''.
(N) Section 411(a)(1)(A)(xvi) (42 U.S.C.
611(a)(1)(A)(xvi)) is amended by striking ``408(a)(7)''
and inserting ``408(a)(7)(A)''.
SEC. 917. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this title, this
title and the amendments made by this title shall take effect on
October 1, 2014, and shall apply to payments under title IV of the
Social Security Act for calendar quarters beginning on or after such
date, without regard to whether regulations to implement the amendments
are promulgated by such date.
(b) Delay Permitted if State Legislation Required.--If the
Secretary of Health and Human Services determines that State
legislation (other than legislation appropriating funds) is required in
order for a State plan under part A or E of title IV of the Social
Security Act to meet the additional requirements imposed by the
amendments made by this title, the plan shall not be regarded as
failing to meet any of the additional requirements before the 1st day
of the 1st calendar quarter beginning after the close of the first
regular session of the State legislature that begins after the date of
the enactment of this Act. If the State has a 2-year legislative
session, each year of the session is deemed to be a separate regular
session of the State legislature.
TITLE X--EMPLOYMENT ADVANCEMENT, RETENTION, AND NAVIGATION ACT
SEC. 1011. FOCUS ON EMPLOYMENT.
(a) Purpose.--Section 401(a) of the Social Security Act (42 U.S.C.
601(a)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(5) promote employment advancement among needy
families.''.
(b) State Plan Requirement.--Section 402(a)(1)(A) of such Act (42
U.S.C. 602(a)(1)(A)) is amended--
(1) by redesignating clauses (vii) and (viii) as clauses
(viii) and (ix), respectively; and
(2) by inserting after clause (vi) the following:
``(vii) Establish numeric goals for
increasing job entry, employment retention, and
earnings gains for current and recent
recipients of assistance under the program, and
provide the Secretary with a narrative
description of the activities and programs the
state will implement to attain these goals.''.
SEC. 1012. MODIFICATION RELATING TO THE CONTINGENCY FUND.
(a) Limitation on Use of Contingency Fund Grants.--Section
403(b)(3) of the Social Security Act (42 U.S.C. 603(b)(3)) is amended
by inserting at the end the following:
``(D) Limitation on use of funds.--Funds received
by a State under this paragraph shall be used solely to
support training programs leading to a credential that
is directly linked to the employment opportunities in
the local area or region involved in order to promote
the employment of current or recent recipients of
assistance under the State program funded under this
Part (including non-custodial parents of such
recipients).''.
(b) Elimination of Maintenance of Effort Requirement for
Contingency Fund.--Section 409(a) of such Act (42 U.S.C. 609(a)) is
amended by striking paragraph (10).
(c) Modification of Annual Reconciliation Requirement for
Contingency Fund.--Section 403(b)(6)(B)(i)(II) of such Act (42 U.S.C.
603(b)(6)(B)(i)(II)) is amended by inserting before ``historic'' the
following: ``the applicable percentage (as defined in section
409(a)(7)(B)(ii)) of''.
SEC. 1013. TRAINING FOR IN-DEMAND JOBS.
(a) Vocational Educational Training for Employment in an In-Demand
Occupation.--Section 407(d)(8) of the Social Security Act (42 U.S.C.
607(d)(8)) is amended to read as follows:
``(8) vocational educational training not to exceed 12
months for any individual, or not to exceed 24 months for any
individual participating in a training program leading to a
credential that is directly linked to the employment
opportunities in the individual's local area or region;''.
(b) Treatment of Students Under 20 Years of Age as Engaged in
Work.--Section 407(c)(2)(D) of such Act (42 U.S.C. 607(c)(2)(D)) is
amended by striking ``, or (if the month is in fiscal year 2000 or
thereafter) deemed to be engaged in work for the month by reason of
subparagraph (C) of this paragraph''.
SEC. 1014. EFFECTIVE DATE.
The amendments made by this title shall take effect on the date of
the enactment of this title.
TITLE XI--RESTORING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS FUNDING
CUTS INSTITUTED IN FARM BILL (HEAT-AND-EAT)
SEC. 1101. RESTORATION OF STANDARD UTILITY ALLOWANCES BASED ON THE
RECEIPT OF ENERGY ASSISTANCE PAYMENTS.
(a) Standard Utility Allowances in the Supplemental Nutrition
Assistance Program.--Section 5(e)(6)(C) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended--
(1) in clause (i) by striking ``, subject to clause (iv)'',
and
(2) in clause (iv) by striking subclause (I) and inserting
the following:
``(I) In general.--Subject to
subclause (II), if a State agency
elects to use a standard utility
allowance that reflects heating or
cooling costs, the standard utility
allowance shall be made available to
households receiving a payment, or on
behalf of which a payment is made,
under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621
et seq.) or other similar energy
assistance program, if the household
still incurs out-of-pocket heating or
cooling expenses in excess of any
assistance paid on behalf of the
household to an energy provider.''.
(b) Conforming Amendment.--Section 2605(f)(2)(A) of the Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended
by striking ``, except that, for purposes of the supplemental nutrition
assistance program established under the Food and Nutrition Act of 2008
(7 U.S.C. 2011 et seq.), such payments or allowances were greater than
$20 annually, consistent with section 5(e)(6)(C)(iv)(I) of that Act (7
U.S.C. 2014(e)(6)(C)(iv)(I)), as determined by the Secretary of
Agriculture''.
TITLE XII--HELPING HUNGRY STUDENTS LEARN
SEC. 1201. FINDINGS.
Congress makes the following findings:
(1) In 2012, nearly one in five children in America lived
in a household that lacked access to nutritious food on a
regular basis. That is 15.9 million American children who
struggled with hunger at some time during the year.
(2) Children who experience hunger are more likely to get
sick and are more likely to be obese than those who do not.
Children facing chronic hunger also find it more difficult to
concentrate in school and tend to exhibit higher levels of
behavioral, emotional, and academic problems.
(3) Federal programs play an important role in addressing
childhood hunger. In 2013, 21 million students participated in
the free or reduced-price lunch program. Eleven million
students participated in the free or reduced-price breakfast
program. Three million low-income children received free meals
during the summer months. Forty-seven percent of participants
in the supplemental nutrition assistance program are under the
age of 18.
(4) On average, students who eat school breakfast achieve
17.5 percent higher scores on standardized math tests, and
attend 1.5 more days of school each year than those who do not.
Students who attend class more regularly are 20 percent more
likely to graduate from high school. Participation in the
school breakfast program is associated with children having a
lower Body Mass Index.
SEC. 1202. SCHOOL LUNCH PROGRAM.
Section 9(b) of the Richard B. Russell National School Lunch Act is
amended--
(1) in paragraph (1)(A), by inserting after the third
sentence the following: ``Notwithstanding any other provision
of this Act and the Child Nutrition Act of 1966, for each
school year beginning on or after the July 1 of the year
following the year of enactment of the Pathways Out of Poverty
Act of 2014, the income guidelines for determining eligibility
for free lunches shall be 185 percent of the applicable family
size income levels contained in the nonfarm income poverty
guidelines prescribed by the Office of Management and Budget,
as adjusted annually in accordance with subparagraph (B)''; and
(2) in paragraph (9)(B), by inserting at the end the
following:
``(iii) Termination of reduced-price
category.--Beginning with the school year
beginning July 1 of the year following the year
of enactment of the Pathways Out of Poverty Act
of 2014, no child shall be determined eligible
for a reduced price lunch.''.
SEC. 1203. SCHOOL BREAKFAST PROGRAM.
(a) Universal School Breakfast Program.--Section 4(a) of the Child
Nutrition Act of 1966 (42 U.S.C. 1773(a)) is amended--
(1) by striking ``(a) There'' and inserting: ``(a)(1)
There''; and
(2) by adding at the end the following:
``(2) Universal school breakfast program.--For each school
year beginning on or after the July 1 of the year following the
year of enactment of the Pathways Out of Poverty Act of 2014,
each school participating in the school breakfast program under
this section shall provide breakfast under the program to each
student that desires such a breakfast at no cost to the
student.''.
(b) National Average Payment Rate.--Section 4(b)(1)(B) of the Child
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B)) is amended by adding at
the end the following: ``Notwithstanding any other provision of this
Act or the Richard B. Russell National School Lunch Act, for each
school year beginning on or after the July 1 of the year following the
year of enactment of the Pathways Out of Poverty Act of 2014, the
national average payment for each breakfast served to any child shall
be equal to the national average payment for each free breakfast served
during the school year beginning July 1 of the year of enactment of the
Pathways Out of Poverty Act of 2014 (which shall be adjusted pursuant
to section 11(a) of the Richard B. Russell National School Lunch
Act).''.
(c) Severe Need Assistance.--Section 4(d)(1) of the Child Nutrition
Act of 1966 (42 U.S.C. 1773(d)(1)) is amended--
(1) by striking ``(A) during'' and inserting: ``(A)(i)
during'';
(2) by striking ``(B) in'' and inserting ``(ii) in'';
(3) by striking ``subparagraph (A)'' and inserting ``clause
(i)'';
(4) by striking ``met.'' and inserting ``met; and''; and
(5) by adding at the end the following:
``(B) for each school year beginning on or after
the July 1 of the year following the year of enactment
of the Pathways Out of Poverty Act of 2014, there is an
alternative breakfast serving model to increase
participation in the school breakfast program, such as
by serving breakfast in the classroom or having a
school breakfast cart.''.
SEC. 1204. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.
The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.) is amended by adding at the end the following:
``SEC. 30. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.
``(a) In General.--From the amount appropriated to carry out this
section, the Secretary shall carry out a summer electronic benefits
transfer for children program by awarding grants to States that desire
to participate in such program to assist such States with the initial
administrative costs of such participation.
``(b) Program Requirements.--The summer electronic benefits
transfer for children program carried out under this section shall have
the same terms and conditions as the summer electronic benefits
transfer for children demonstration project carried out under section
749(g) of the Agriculture, Rural Development, and Food and Drug
Administration, and Related Agencies Appropriations Act, 2010 (Public
Law 111-80; 123 Stat. 2131), except that the Secretary shall prescribe
an annual adjustment for the monthly benefit of $60 per child that is
adjusted at the time that the annual adjustments are made for the
national average payment rates for breakfasts and lunches (pursuant to
section 11(a) of this Act).''.
SEC. 1205. WEEKENDS AND HOLIDAYS WITHOUT HUNGER.
Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) is amended by adding at the end the following:
``(l) Weekends and Holidays Without Hunger.--
``(1) Definitions.--In this subsection:
``(A) At-risk school child.--The term `at-risk
school child' has the meaning given the term in section
17(r)(1).
``(B) Eligible institution.--
``(i) In general.--The term `eligible
institution' means a public or private
nonprofit institution that is determined by the
Secretary to be able to meet safe food storage,
handling, and delivery standards established by
the Secretary.
``(ii) Inclusions.--The term `eligible
institution' includes--
``(I) an elementary or secondary
school or school food service
authority;
``(II) a food bank or food pantry;
``(III) a homeless shelter; and
``(IV) such other type of emergency
feeding agency as is approved by the
Secretary.
``(2) Establishment.--Subject to the availability of
appropriations provided in advance in an appropriations Act
specifically for the purpose of carrying out this subsection,
the Secretary shall establish a program under which the
Secretary shall provide commodities, on a competitive basis, to
State agencies for the purposes of enabling eligible
institutions to carry out projects to provide nutritious food
to at-risk children on weekends and during extended school
holidays during the school year.
``(3) Applications.--To participate in the program under
this subsection, a State agency shall submit an application to
the Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(4) Eligibility.--
``(A) In general.--To be eligible to receive
commodities under this subsection, an eligible
institution shall submit an application to the State
agency involved at such time, in such manner, and
containing such information as the State agency may
require.
``(B) Plan.--An application under subparagraph (A)
shall include the plan of the eligible institution for
the distribution of nutritious foods to at-risk school
children under the project to be carried out under this
subsection, including--
``(i) methods of food service delivery to
at-risk school children;
``(ii) assurances that children receiving
foods under the project will not be publicly
separated or overtly identified;
``(iii) lists of the types of food to be
provided under the project and provisions to
ensure food quality and safety;
``(iv) information on the number of at-risk
school children to be served and the per-child
cost of providing the children with food; and
``(v) such other information as the
Secretary determines to be necessary to assist
the Secretary in evaluating projects that
receive commodities under this subsection.
``(5) Priority.--In selecting applications under this
subsection, a State agency shall give priority to eligible
institutions that--
``(A) have on-going programs and experience serving
populations with significant proportions of at-risk
school children;
``(B) have a good record of experience in food
delivery and food safety systems;
``(C) maintain high-quality control,
accountability, and recordkeeping standards;
``(D) provide children with readily consumable food
of high nutrient content and quality;
``(E) demonstrate cost efficiencies and the
potential for obtaining supplemental funding from non-
Federal sources to carry out projects; and
``(F) demonstrate the ability to continue projects
for the full approved term of the pilot project period.
``(6) Guidelines.--
``(A) In general.--The Secretary shall issue
guidelines containing the criteria for eligible
institutions to receive commodities under this section
from State agencies.
``(B) Inclusions.--The guidelines shall, to the
maximum extent practicable within the funds available
and applications submitted, take into account--
``(i) geographical variations in project
locations that will be carried out by eligible
institutions to include qualifying projects in
rural, urban, and suburban areas with high
proportions of families with at-risk school
children;
``(ii) different types of projects that
offer nutritious foods on weekends and during
school holidays to at-risk school children; and
``(iii) institutional capacity to collect,
maintain, and provide statistically valid
information necessary for the Secretary--
``(I) to analyze and evaluate the
results of the pilot project; and
``(II) to make recommendations to
Congress.
``(7) Evaluation.--
``(A) Interim evaluation.--Not later than November
30, 2016, the Secretary shall complete an interim
evaluation of the pilot program carried out under this
subsection.
``(B) Final report.--Not later than December 31,
2018, the Secretary shall submit to Congress a final
report that contains--
``(i) an evaluation of the pilot program
carried out under this subsection; and
``(ii) any recommendations of the Secretary
for legislative action.
``(8) Funding.--
``(A) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection such sums as are necessary, to remain
available until expended.
``(B) Availability of funds.--Not more than 3
percent of the funds made available under subparagraph
(A) may be used by the Secretary for expenses
associated with review of the operations and evaluation
of the projects carried out under this subsection.''.
TITLE XIII--FOOD ASSISTANCE TO IMPROVE REINTEGRATION ACT
SEC. 1301. REPEAL OF DENIAL OF BENEFITS.
Section 115 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (21 U.S.C. 862a) is amended--
(1) in subsection (a) by striking paragraph (2);
(2) in subsection (b) by striking paragraph (2); and
(3) in subsection (e) by striking paragraph (2).
DIVISION D--LABOR/JOB TRAINING
TITLE XV--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK
Subtitle A--Supporting Unemployed Workers
SEC. 1501. SHORT TITLE.
This subtitle may be cited as the ``Supporting Unemployed Workers
Act of 2014''.
PART I--EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND CERTAIN
EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT OF SELF-EMPLOYMENT
ASSISTANCE PROGRAM
SEC. 1511. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.
(a) In General.--Section 4007 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended by
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
(b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J), by inserting ``and'' at the end;
and
(3) by inserting after subparagraph (J) the following:
``(K) the amendments made by section 1511(a) of the
Supporting Unemployed Workers Act of 2014; and''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010 (Public Law
111-312; 26 U.S.C. 3304 note).
SEC. 1512. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.
(a) In General.--Section 2005 of the Assistance for Unemployed
Workers and Struggling Families Act, as contained in Public Law 111-5
(26 U.S.C. 3304 note), is amended--
(1) by striking ``December 31, 2013'' each place it appears
and inserting ``December 31, 2015''; and
(2) in subsection (c), by striking ``June 30, 2014'' and
inserting ``June 30, 2016''.
(b) Extension of Matching for States With No Waiting Week.--Section
5 of the Unemployment Compensation Extension Act of 2008 (Public Law
110-449; 26 U.S.C. 3304 note) is amended by striking ``June 30, 2014''
and inserting ``June 30, 2016''.
(c) Extension of Modification of Indicators Under the Extended
Benefit Program.--Section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in subsection (d), by striking ``December 31, 2013''
and inserting ``December 31, 2015''; and
(2) in subsection (f)(2), by striking ``December 31, 2013''
and inserting ``December 31, 2015''.
(d) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010 (Public Law
111-312; 26 U.S.C. 3304 note).
SEC. 1513. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD
UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is amended--
(1) by striking ``June 30, 2013'' and inserting ``June 30,
2015''; and
(2) by striking ``December 31, 2013'' and inserting
``December 31, 2015''.
(b) Clarification on Authority To Use Funds.--Funds appropriated
under either the first or second sentence of clause (iv) of section
2(c)(2)(D) of the Railroad Unemployment Insurance Act (45 U.S.C.
352(c)(2)(D)) shall be available to cover the cost of additional
extended unemployment benefits provided under such section 2(c)(2)(D)
by reason of the amendments made by subsection (a) as well as to cover
the cost of such benefits provided under such section 2(c)(2)(D), as in
effect on the day before the date of the enactment of this Act.
PART II--REEMPLOYMENT NOW PROGRAM
SEC. 1521. ESTABLISHMENT OF REEMPLOYMENT NOW PROGRAM.
(a) In General.--There is established the Reemployment NOW program
to be carried out by the Secretary of Labor in accordance with this
part in order to facilitate the reemployment of individuals who are
receiving emergency unemployment compensation under title IV of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C.
3304 note) (hereafter in this part referred to as ``EUC claimants'').
(b) Authorization and Appropriation.--There are authorized to be
appropriated $4,000,000,000 for fiscal year 2015 to carry out the
Reemployment NOW program under this part.
SEC. 1522. DISTRIBUTION OF FUNDS.
(a) In General.--Of the amount made available under section 1521(b)
to carry out this part, the Secretary of Labor shall--
(1) reserve up to 1 percent for the costs of Federal
administration and for carrying out rigorous evaluations of the
activities conducted under this part; and
(2) allot the remainder of the funds not reserved under
paragraph (1) in accordance with the requirements of subsection
(b) and (c) to States that have approved plans under section
1523.
(b) Allotment Formula.--
(1) Formula factors.--The Secretary of Labor shall allot
the funds available under subsection (a)(2) as follows--
(A) two-thirds of such funds shall be allotted on
the basis of the relative number of unemployed
individuals in each State, compared to the total number
of unemployed individuals in all States; and
(B) one-third of such funds shall be allotted on
the basis of the relative number of individuals in each
State who have been unemployed for 27 weeks or more,
compared to the total number of individuals in all
States who have been unemployed for 27 weeks or more.
(2) Calculation.--For purposes of paragraph (1), the number
of unemployed individuals and the number of individuals
unemployed for 27 weeks or more shall be based on the data for
the most recent 12-month period, as determined by the
Secretary.
(c) Reallotment.--
(1) Failure to submit state plan.--If a State does not
submit a State plan by the time specified in section 1523(b),
or a State does not receive approval of a State plan, the
amount the State would have been eligible to receive pursuant
to the formula under subsection (b) shall be allotted to States
that receive approval of the State plan under section 1523 in
accordance with the relative allotments of such States as
determined by the Secretary under subsection (b).
(2) Failure to implement activities on a timely basis.--The
Secretary of Labor may, in accordance with procedures and
criteria established by the Secretary, recapture the portion of
the State allotment under this part that remains unobligated if
the Secretary determines such funds are not being obligated at
a rate sufficient to meet the purposes of this part. The
Secretary shall reallot such recaptured funds to other States
that are not subject to recapture in accordance with the
relative share of the allotments of such States as determined
by the Secretary under subsection (b).
(3) Recapture of funds.--Funds recaptured under paragraph
(2) shall be available for reobligation not later than December
31, 2015.
SEC. 1523. STATE PLAN.
(a) In General.--For a State to be eligible to receive an allotment
under section 1522, a State shall submit to the Secretary of Labor a
State plan in such form and containing such information as the
Secretary may require, which at a minimum shall include--
(1) a description of the activities to be carried out by
the State to assist in the reemployment of eligible individuals
to be served in accordance with this part, including which of
the activities authorized in sections 1524-1528 the State
intends to carry out and an estimate of the amounts the State
intends to allocate to the activities, respectively;
(2) a description of the performance outcomes to be
achieved by the State through the activities carried out under
this part, including the employment outcomes to be achieved by
participants and the processes the State will use to track
performance, consistent with guidance provided by the Secretary
of Labor regarding such outcomes and processes;
(3) a description of coordination of activities to be
carried out under this part with activities under title I of
the Workforce Investment Act of 1998 (as in effect on the day
before the date of enactment of the Workforce Innovation and
Opportunity Act), the Wagner-Peyser Act, and other appropriate
Federal programs;
(4) the timelines for implementation of the activities
described in the plan and the number of EUC claimants expected
to be enrolled in such activities by quarter;
(5) assurances that the State will participate in the
evaluation activities carried out by the Secretary of Labor
under this section;
(6) assurances that the State will provide appropriate
reemployment services, including counseling, to any EUC
claimant who participates in any of the programs authorized
under this part; and
(7) assurances that the State will report such information
as the Secretary may require relating to fiscal, performance
and other matters, including employment outcomes and effects,
which the Secretary determines are necessary to effectively
monitor the activities carried out under this part.
(b) Plan Submission and Approval.--A State plan under this section
shall be submitted to the Secretary of Labor for approval not later
than 30 days after the Secretary issues guidance relating to submission
of such plan. The Secretary shall approve such plans if the Secretary
determines that the plans meet the requirements of this part and are
appropriate and adequate to carry out the purposes of this part.
(c) Plan Modifications.--A State may submit modifications to a
State plan that has been approved under this part, and the Secretary of
Labor may approve such modifications, if the plan as modified would
meet the requirements of this part and are appropriate and adequate to
carry out the purposes of this part.
SEC. 1524. BRIDGE TO WORK PROGRAM.
(a) In General.--A State may use funds allotted to the State under
this part to establish and administer a Bridge to Work program
described in this section.
(b) Description of Program.--In order to increase individuals'
opportunities to move to permanent employment, a State may establish a
Bridge to Work program to provide an EUC claimant with short-term work
experience placements with an eligible employer, during which time such
individual--
(1) shall be paid emergency unemployment compensation
payable under title IV of the Supplemental Appropriations Act,
2008 (Public Law 110-252; 26 U.S.C. 3304 note), as wages for
work performed, and as specified in subsection (c);
(2) shall be paid the additional amount described in
subsection (e) as augmented wages for work performed; and
(3) may be paid compensation in addition to the amounts
described in paragraphs (1) and (2) by a State or by a
participating employer as wages for work performed.
(c) Program Eligibility and Other Requirements.--For purposes of
this program--
(1) individuals who, except for the requirements described
in paragraph (3), are eligible to receive emergency
unemployment compensation payments under title IV of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note), and who choose to participate in the program
described in subsection (b), shall receive such payments as
wages for work performed during their voluntary participation
in the program described under subsection (b);
(2) the wages payable to individuals described in paragraph
(1) shall be paid from the emergency unemployment compensation
account for such individual as described in section 4002 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note), and the amount in such individual's account
shall be reduced accordingly;
(3) the wages payable to an individual described in
paragraph (1) shall be payable in the same amount, at the same
interval, on the same terms, and subject to the same conditions
under title IV of the Supplemental Appropriations Act, 2008
(Public Law 110-252; 26 U.S.C. 3304 note), except that--
(A) State requirements applied under such Act
relating to availability for work and active search for
work are not applicable to such individuals who
participate for at least 25 hours per week in the
program described in subsection (b) for the duration of
such individual's participation in the program;
(B) State requirements applied under such Act
relating to disqualifying income regarding wages earned
shall not apply to such individuals who participate for
at least 25 hours per week in the program described in
subsection (b), and shall not apply with respect to--
(i) the wages described under subsection
(b); and
(ii) any wages, in addition to those
described under subsection (b), whether paid by
a State or a participating employer for the
same work activities;
(C) State prohibitions or limitations applied under
such Act relating to employment status shall not apply
to such individuals who participate in the program
described in subsection (b); and
(D) State requirements applied under such Act
relating to an individual's acceptance of an offer of
employment shall not apply with regard to an offer of
long-term employment from a participating employer made
to such individual who is participating in the program
described in subsection (b) in a work experience
provided by such employer, where such long-term
employment is expected to commence or commences at the
conclusion of the duration specified in paragraph
(4)(A);
(4) the program shall be structured so that individuals
described in paragraph (1) may participate in the program for
up to--
(A) 8 weeks, and
(B) 38 hours for each such week;
(5) a State shall ensure that all individuals participating
in the program are covered by a workers' compensation insurance
program; and
(6) the program meets such other requirements as the
Secretary of Labor determines to be appropriate in guidance
issued by the Secretary.
(d) State Requirements.--
(1) Certification of eligible employer.--A State may
certify as eligible for participation in the program under this
section any employer that meets the eligibility criteria as
established in guidance by the Secretary of Labor, except that
an employer shall not be certified as eligible for
participation in the program described under subsection (b)--
(A) if such employer--
(i) is a Federal, State, or local
government entity;
(ii) would engage an eligible individual in
work activities under any employer's grant,
contract, or subcontract with a Federal, State,
or local government entity, except with regard
to work activities under any employer's supply
contract or subcontract;
(iii) is delinquent with respect to any
taxes or employer contributions described under
sections 3301 and 3302(a)(1) of the Internal
Revenue Code of 1986 or with respect to any
related reporting requirements;
(iv) is engaged in the business of
supplying workers to other employers and would
participate in the program for the purpose of
supplying individuals participating in the
program to other employers; or
(v) has previously participated in the
program and the State has determined that such
employer has failed to abide by any of the
requirements specified in subsections (h), (i),
or (j), or by any other requirements that the
Secretary may establish for employers under
subsection (c)(6); and
(B) unless such employer provides assurances that
it has not displaced existing workers pursuant to the
requirements of subsection (h).
(2) Authorized activities.--Funds allotted to a State under
this part for the program--
(A) shall be used to--
(i) recruit employers for participation in
the program;
(ii) review and certify employers
identified by eligible individuals seeking to
participate in the program;
(iii) ensure that reemployment and
counseling services are available for program
participants, including services describing the
program under subsection (b), prior to an
individual's participation in such program;
(iv) establish and implement processes to
monitor the progress and performance of
individual participants for the duration of the
program;
(v) prevent misuse of the program; and
(vi) pay augmented wages to eligible
individuals, if necessary, as described in
subsection (e); and
(B) may be used--
(i) to pay workers' compensation insurance
premiums to cover all individuals participating
in the program, except that, if a State opts
not to make such payments directly to a State
administered workers' compensation program, the
State involved shall describe in the approved
State plan the means by which such State shall
ensure workers' compensation or equivalent
coverage for all individuals who participate in
the program;
(ii) to pay compensation to a participating
individual that is in addition to the amounts
described in subsections (c)(1) and (e) as
wages for work performed;
(iii) to provide supportive services, such
as transportation, child care, and dependent
care, that would enable individuals to
participate in the program;
(iv) for the administration and oversight
of the program; and
(v) to fulfill additional program
requirements included in the approved State
plan.
(e) Payment of Augmented Wages if Necessary.--In the event that the
wages described in subsection (c)(1) are not sufficient to equal or
exceed the minimum wages that are required to be paid by an employer
under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) or the applicable State or local minimum wage law,
whichever is higher, a State shall pay augmented wages to a program
participant in any amount necessary to cover the difference between--
(1) such minimum wages amount; and
(2) the wages payable under subsection (c)(1).
(f) Effect of Wages on Eligibility for Other Programs.--None of the
wages paid under this section shall be considered as income for the
purposes of determining eligibility for and the amount of income
transfer and in-kind aid furnished under any Federal or federally
assisted program based on need.
(g) Effect of Wages, Work Activities, and Program Participation on
Continuing Eligibility for Emergency Unemployment Compensation.--Any
wages paid under this section and any additional wages paid by an
employer to an individual described in subsection (c)(1), and any work
activities performed by such individual as a participant in the
program, shall not be construed so as to render such individual
ineligible to receive emergency unemployment compensation under title
IV of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note).
(h) Nondisplacement of Employees.--
(1) Prohibition.--An employer shall not use a program
participant to displace (including a partial displacement, such
as a reduction in the hours of non-overtime work, wages, or
employment benefits) any current employee (as of the date of
the participation).
(2) Other prohibitions.--An employer shall not permit a
program participant to perform work activities related to any
job for which--
(A) any other individual is on layoff from the same
or any substantially equivalent position;
(B) the employer has terminated the employment of
any employee or otherwise reduced the workforce of the
employer with the intention of filling or partially
filling the vacancy so created with the work activities
to be performed by a program participant;
(C) there is a strike or lock out at the worksite
that is the participant's place of employment; or
(D) the job is created in a manner that will
infringe in any way upon the promotional opportunities
of currently employed individuals (as of the date of
the participation).
(i) Prohibition on Impairment of Contracts.--An employer shall not,
by means of assigning work activities under this section, impair an
existing contract for services or a collective bargaining agreement,
and no such activity that would be inconsistent with the terms of a
collective bargaining agreement shall be undertaken without the written
concurrence of the labor organization that is signatory to the
collective bargaining agreement.
(j) Limitation on Employer Participation.--If, after 24 weeks of
participation in the program, an employer has not made an offer of
suitable long-term employment to any individual described under
subsection (c)(1) who was placed with such employer and has completed
the program, a State shall bar such employer from further participation
in the program. States may impose additional conditions on
participating employers to ensure that an appropriate number of
participants receive offers of suitable long-term employment.
(k) Failure To Meet Program Requirements.--If a State makes a
determination based on information provided to the State, or acquired
by the State by means of its administration and oversight functions,
that a participating employer under this section has violated a
requirement of this section, the State shall bar such employer from
further participation in the program. The State shall establish a
process whereby an individual described in subsection (c)(1), or any
other affected individual or entity, may file a complaint with the
State relating to a violation of any requirement or prohibition under
this section.
(l) Participant Option To Terminate Participation in Bridge to Work
Program.--
(1) Termination.--An individual who is participating in a
program described in subsection (b) may opt to discontinue
participation in such program.
(2) Continued eligibility for emergency unemployment
compensation.--An individual who opts to discontinue
participation in such program, is terminated from such program
by a participating employer, or who has completed participation
in such program, and who continues to meet the eligibility
requirements for emergency unemployment compensation under
title IV of the Supplemental Appropriations Act, 2008 (Public
Law 110-252; 26 U.S.C. 3304 note), shall receive emergency
unemployment compensation payments with respect to subsequent
weeks of unemployment, to the extent that amounts remain in the
account established for such individual under section 4002(b)
of such Act or to the extent that such individual commences
receiving the amounts described in subsections (c), (d), or (e)
of such section, respectively.
(m) Effect of Other Laws.--Unless otherwise provided in this
section, nothing in this section shall be construed to alter or affect
the rights or obligations under any Federal, State, or local laws with
respect to any individual described in subsection (c)(1) and with
respect to any participating employer under this section.
(n) Treatment of Payments.--All wages or other payments to an
individual under this section shall be treated as payments of
unemployment compensation for purposes of section 209 of the Social
Security Act (42 U.S.C. 409) and for purposes of subtitle A and
sections 3101, 3111, and 3301 of the Internal Revenue Code of 1986.
SEC. 1525. WAGE INSURANCE.
(a) In General.--A State may use the funds allotted to the State
under this part to provide a wage insurance program for EUC claimants.
(b) Benefits.--The wage insurance program provided under this
section may use funds allotted to the State under this part to pay, for
a period not to exceed 2 years, to a worker described in subsection
(c), up to 50 percent of the difference between--
(1) the wages received by the worker at the time of
separation; and
(2) the wages received by the worker for reemployment.
(c) Individual Eligibility.--The benefits described in subsection
(b) may be paid to an individual who is an EUC claimant at the time
such individual obtains reemployment and who--
(1) is at least 50 years of age;
(2) earns not more than $50,000 per year in wages from
reemployment;
(3) is employed on a full-time basis as defined by the law
of the State; and
(4) is not employed by the employer from which the
individual was last separated.
(d) Total Amount of Payments.--A State shall establish a maximum
amount of payments per individual for purposes of payments described in
subsection (b) during the eligibility period described in such
subsection.
(e) Non-Discrimination Regarding Wages.--An employer shall not pay
a worker described in subsection (c) less than such employer pays to a
regular worker in the same or substantially equivalent position.
SEC. 1526. ENHANCED REEMPLOYMENT STRATEGIES.
(a) In General.--A State may use funds allotted under this part to
provide a program of enhanced reemployment services to EUC claimants.
In addition to the provision of services to such claimants, the program
may include the provision of reemployment services to individuals who
are unemployed and have exhausted their rights to emergency
unemployment compensation under title IV of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note). The
program shall provide reemployment services that are more intensive
than the reemployment services provided by the State prior to the
receipt of the allotment under this part.
(b) Types of Services.--The enhanced reemployment services
described in subsection (a) may include services such as--
(1) assessments, counseling, and other intensive services
that are provided by staff on a one-to-one basis and may be
customized to meet the reemployment needs of EUC claimants and
individuals described in subsection (a);
(2) comprehensive assessments designed to identify
alternative career paths;
(3) case management;
(4) reemployment services that are provided more frequently
and more intensively than such reemployment services have
previously been provided by the State; and
(5) services that are designed to enhance communication
skills, interviewing skills, and other skills that would assist
in obtaining reemployment.
SEC. 1527. SELF-EMPLOYMENT PROGRAMS.
A State may use funds allotted to the State under this part, in an
amount specified under an approved State plan, for the administrative
costs associated with starting up the self-employment assistance
program described in section 4001(i) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note).
SEC. 1528. ADDITIONAL INNOVATIVE PROGRAMS.
(a) In General.--A State may use funds allotted under this part to
provide a program for innovative activities, which use a strategy that
is different from the reemployment strategies described in sections
1524-1527 and which are designed to facilitate the reemployment of EUC
claimants. In addition to the provision of activities to such
claimants, the program may include the provision of activities to
individuals who are unemployed and have exhausted their rights to
emergency unemployment compensation under title IV of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note).
(b) Conditions.--The innovative activities approved in accordance
with subsection (a)--
(1) shall directly benefit EUC claimants and, if
applicable, individuals described in subsection (a), either as
a benefit paid to such claimant or individual or as a service
provided to such claimant or individual;
(2) shall not result in a reduction in the duration or
amount of, emergency unemployment compensation for which EUC
claimants would otherwise be eligible;
(3) shall not include a reduction in the duration, amount
of or eligibility for regular compensation or extended
benefits;
(4) shall not be used to displace (including a partial
displacement, such as a reduction in the hours of non-overtime
work, wages, or employment benefits) any currently employed
employee (as of the date of the participation) or allow a
program participant to perform work activities related to any
job for which--
(A) any other individual is on layoff from the same
or any substantially equivalent job;
(B) the employer has terminated the employment of
any regular employee or otherwise reduced the workforce
of the employer with the intention of filling or
partially filling the vacancy so created with the work
activities to be performed by a program participant;
(C) there is a strike or lock out at the worksite
that is the participant's place of employment; or
(D) the job is created in a manner that will
infringe in any way upon the promotional opportunities
of currently employed individuals (as of the date of
the participation); and
(5) shall not be in violation of any Federal, State, or
local law.
SEC. 1529. GUIDANCE AND ADDITIONAL REQUIREMENTS.
The Secretary of Labor may establish through guidance, without
regard to the requirements of section 553 of title 5, United States
Code, such additional requirements, including requirements regarding
the allotment, recapture, and reallotment of funds, and reporting
requirements, as the Secretary determines to be necessary to ensure
fiscal integrity, effective monitoring, and appropriate and prompt
implementation of the activities under this Act.
SEC. 1530. REPORT OF INFORMATION AND EVALUATIONS TO CONGRESS AND THE
PUBLIC.
The Secretary of Labor shall provide to the appropriate Committees
of the Congress and make available to the public the information
reported pursuant to section 1529 and the evaluations of activities
carried out pursuant to the funds reserved under section 1522(a)(1).
SEC. 1531. STATE.
For purposes of this part, the term ``State'' has the meaning given
that term in section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
PART III--SHORT-TIME COMPENSATION PROGRAM
SEC. 1541. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION PAYMENTS IN
STATES WITH PROGRAMS IN LAW.
(a) Payments to States.--
(1) In general.--Subject to paragraph (3), there shall be
paid to a State an amount equal to 100 percent of the amount of
short-time compensation paid under a short-time compensation
program (as defined in section 3306(v) of the Internal Revenue
Code of 1986) under the provisions of the State law.
(2) Terms of payments.--Payments made to a State under
paragraph (1) shall be payable by way of reimbursement in such
amounts as the Secretary estimates the State will be entitled
to receive under this section for each calendar month, reduced
or increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior
calendar month were greater or less than the amounts which
should have been paid to the State. Such estimates may be made
on the basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary and the State agency of the
State involved.
(3) Limitations on payments.--
(A) General payment limitations.--No payments shall
be made to a State under this section for short-time
compensation paid to an individual by the State during
a benefit year in excess of 26 times the amount of
regular compensation (including dependents' allowances)
under the State law payable to such individual for a
week of total unemployment.
(B) Employer limitations.--No payments shall be
made to a State under this section for benefits paid to
an individual by the State under a short-time
compensation program if such individual is employed by
the participating employer on a seasonal, temporary, or
intermittent basis.
(b) Applicability.--
(1) In general.--Payments to a State under subsection (a)
shall be available for weeks of unemployment--
(A) beginning on or after the date of the enactment
of this Act; and
(B) ending on or before the date that is 3 years
and 6 months after the date of the enactment of this
Act.
(2) Three-year funding limitation for combined payments
under this section and section 1543.--States may receive
payments under this section and section 1543 with respect to a
total of not more than 156 weeks.
(c) Two-Year Transition Period for Existing Programs.--During any
period that the transition provision under section 1541(a)(3) is
applicable to a State with respect to a short-time compensation
program, such State shall be eligible for payments under this section.
Subject to paragraphs (1)(B) and (2) of subsection (b), if at any point
after the date of the enactment of this Act the State enacts a State
law providing for the payment of short-time compensation under a short-
time compensation program that meets the definition of such a program
under section 3306(v) of the Internal Revenue Code of 1986, the State
shall be eligible for payments under this section after the effective
date of such enactment.
(d) Funding and Certifications.--
(1) Funding.--There are appropriated, out of moneys in the
Treasury not otherwise appropriated, such sums as may be
necessary for purposes of carrying out this section.
(2) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.
(e) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 1542. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION AGREEMENTS.
(a) Federal-State Agreements.--
(1) In general.--Any State which desires to do so may enter
into, and participate in, an agreement under this section with
the Secretary provided that such State's law does not provide
for the payment of short-time compensation under a short-time
compensation program (as defined in section 3306(v) of the
Internal Revenue Code of 1986).
(2) Ability to terminate.--Any State which is a party to an
agreement under this section may, upon providing 30 days'
written notice to the Secretary, terminate such agreement.
(b) Provisions of Federal-State Agreement.--
(1) In general.--Any agreement under this section shall
provide that the State agency of the State will make payments
of short-time compensation under a plan approved by the State.
Such plan shall provide that payments are made in accordance
with the requirements under section 3306(v) of the Internal
Revenue Code of 1986.
(2) Limitations on plans.--
(A) General payment limitations.--A short-time
compensation plan approved by a State shall not permit
the payment of short-time compensation to an individual
by the State during a benefit year in excess of 26
times the amount of regular compensation (including
dependents' allowances) under the State law payable to
such individual for a week of total unemployment.
(B) Employer limitations.--A short-time
compensation plan approved by a State shall not provide
payments to an individual if such individual is
employed by the participating employer on a seasonal,
temporary, or intermittent basis.
(3) Employer payment of costs.--Any short-time compensation
plan entered into by an employer must provide that the employer
will pay the State an amount equal to one-half of the amount of
short-time compensation paid under such plan. Such amount shall
be deposited in the State's unemployment fund and shall not be
used for purposes of calculating an employer's contribution
rate under section 3303(a)(1) of the Internal Revenue Code of
1986.
(c) Payments to States.--
(1) In general.--There shall be paid to each State with an
agreement under this section an amount equal to--
(A) one-half of the amount of short-time
compensation paid to individuals by the State pursuant
to such agreement; and
(B) any additional administrative expenses incurred
by the State by reason of such agreement (as determined
by the Secretary).
(2) Terms of payments.--Payments made to a State under
paragraph (1) shall be payable by way of reimbursement in such
amounts as the Secretary estimates the State will be entitled
to receive under this section for each calendar month, reduced
or increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior
calendar month were greater or less than the amounts which
should have been paid to the State. Such estimates may be made
on the basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary and the State agency of the
State involved.
(3) Funding.--There are appropriated, out of moneys in the
Treasury not otherwise appropriated, such sums as may be
necessary for purposes of carrying out this section.
(4) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.
(d) Applicability.--
(1) In general.--An agreement entered into under this
section shall apply to weeks of unemployment--
(A) beginning on or after the date on which such
agreement is entered into; and
(B) ending on or before the date that is 2 years
and 13 weeks after the date of the enactment of this
Act.
(2) Two-year funding limitation.--States may receive
payments under this section with respect to a total of not more
than 104 weeks.
(e) Special Rule.--If a State has entered into an agreement under
this section and subsequently enacts a State law providing for the
payment of short-time compensation under a short-time compensation
program that meets the definition of such a program under section
3306(v) of the Internal Revenue Code of 1986, the State--
(1) shall not be eligible for payments under this section
for weeks of unemployment beginning after the effective date of
such State law; and
(2) subject to paragraphs (1)(B) and (2) of section
1542(b), shall be eligible to receive payments under section
1542 after the effective date of such State law.
(f) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 1543. GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.
(a) Grants.--
(1) For implementation or improved administration.--The
Secretary shall award grants to States that enact short-time
compensation programs (as defined in subsection (i)(2)) for the
purpose of implementation or improved administration of such
programs.
(2) For promotion and enrollment.--The Secretary shall
award grants to States that are eligible and submit plans for a
grant under paragraph (1) for such States to promote and enroll
employers in short-time compensation programs (as so defined).
(3) Eligibility.--
(A) In general.--The Secretary shall determine
eligibility criteria for the grants under paragraph (1)
and (2).
(B) Clarification.--A State administering a short-
time compensation program, including a program being
administered by a State that is participating in the
transition under the provisions of sections 1541(a)(3)
and 1542(c), that does not meet the definition of a
short-time compensation program under section 3306(v)
of the Internal Revenue Code of 1986, and a State with
an agreement under section 1543, shall not be eligible
to receive a grant under this section until such time
as the State law of the State provides for payments
under a short-time compensation program that meets such
definition and such law.
(b) Amount of Grants.--
(1) In general.--The maximum amount available for making
grants to a State under paragraphs (1) and (2) shall be equal
to the amount obtained by multiplying $700,000,000 (less the
amount used by the Secretary under subsection (e)) by the same
ratio as would apply under subsection (a)(2)(B) of section 903
of the Social Security Act (42 U.S.C. 1103) for purposes of
determining such State's share of any excess amount (as
described in subsection (a)(1) of such section) that would have
been subject to transfer to State accounts, as of October 1,
2013, under the provisions of subsection (a) of such section.
(2) Amount available for different grants.--Of the maximum
incentive payment determined under paragraph (1) with respect
to a State--
(A) one-third shall be available for a grant under
subsection (a)(1); and
(B) two-thirds shall be available for a grant under
subsection (a)(2).
(c) Grant Application and Disbursal.--
(1) Application.--Any State seeking a grant under paragraph
(1) or (2) of subsection (a) shall submit an application to the
Secretary at such time, in such manner, and complete with such
information as the Secretary may require. In no case may the
Secretary award a grant under this section with respect to an
application that is submitted after December 31, 2014.
(2) Notice.--The Secretary shall, within 30 days after
receiving a complete application, notify the State agency of
the State of the Secretary's findings with respect to the
requirements for a grant under paragraph (1) or (2) (or both)
of subsection (a).
(3) Certification.--If the Secretary finds that the State
law provisions meet the requirements for a grant under
subsection (a), the Secretary shall thereupon make a
certification to that effect to the Secretary of the Treasury,
together with a certification as to the amount of the grant
payment to be transferred to the State account in the
Unemployment Trust Fund (as established in section 904(a) of
the Social Security Act (42 U.S.C. 1104(a))) pursuant to that
finding. The Secretary of the Treasury shall make the
appropriate transfer to the State account within 7 days after
receiving such certification.
(4) Requirement.--No certification of compliance with the
requirements for a grant under paragraph (1) or (2) of
subsection (a) may be made with respect to any State whose--
(A) State law is not otherwise eligible for
certification under section 303 of the Social Security
Act (42 U.S.C. 503) or approvable under section 3304 of
the Internal Revenue Code of 1986; or
(B) short-time compensation program is subject to
discontinuation or is not scheduled to take effect
within 12 months of the certification.
(d) Use of Funds.--The amount of any grant awarded under this
section shall be used for the implementation of short-time compensation
programs and the overall administration of such programs and the
promotion and enrollment efforts associated with such programs, such as
through--
(1) the creation or support of rapid response teams to
advise employers about alternatives to layoffs;
(2) the provision of education or assistance to employers
to enable them to assess the feasibility of participating in
short-time compensation programs; and
(3) the development or enhancement of systems to automate--
(A) the submission and approval of plans; and
(B) the filing and approval of new and ongoing
short-time compensation claims.
(e) Administration.--The Secretary is authorized to use 0.25
percent of the funds available under subsection (g) to provide for
outreach and to share best practices with respect to this section and
short-time compensation programs.
(f) Recoupment.--The Secretary shall establish a process under
which the Secretary shall recoup the amount of any grant awarded under
paragraph (1) or (2) of subsection (a) if the Secretary determines
that, during the 5-year period beginning on the first date that any
such grant is awarded to the State, the State--
(1) terminated the State's short-time compensation program;
or
(2) failed to meet appropriate requirements with respect to
such program (as established by the Secretary).
(g) Funding.--There are appropriated, out of moneys in the Treasury
not otherwise appropriated, to the Secretary, $700,000,000 to carry out
this section, to remain available without fiscal year limitation.
(h) Reporting.--The Secretary may establish reporting requirements
for States receiving a grant under this section in order to provide
oversight of grant funds.
(i) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) Short-time compensation program.--The term ``short-time
compensation program'' has the meaning given such term in
section 3306(v) of the Internal Revenue Code of 1986.
(3) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 1544. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS.
(a) In General.--In order to assist States in establishing,
qualifying, and implementing short-time compensation programs (as
defined in section 3306(v) of the Internal Revenue Code of 1986), the
Secretary of Labor (in this section referred to as the ``Secretary'')
shall--
(1) develop model legislative language which may be used by
States in developing and enacting such programs and
periodically review and revise such model legislative language;
(2) provide technical assistance and guidance in
developing, enacting, and implementing such programs; and
(3) establish reporting requirements for States, including
reporting on--
(A) the number of estimated averted layoffs;
(B) the number of participating employers and
workers; and
(C) such other items as the Secretary of Labor
determines are appropriate.
(b) Model Language and Guidance.--The model language and guidance
developed under subsection (a) shall allow sufficient flexibility by
States and participating employers while ensuring accountability and
program integrity.
(c) Consultation.--In developing the model legislative language and
guidance under subsection (a), and in order to meet the requirements of
subsection (b), the Secretary shall consult with employers, labor
organizations, State workforce agencies, and other program experts.
SEC. 1545. REPORTS.
(a) Reports.--
(1) In general.--Not later than 4 years after the date of
the enactment of this Act, the Secretary of Labor shall submit
to Congress and to the President a report or reports on the
implementation of the provisions of this Act.
(2) Requirements.--Any report under paragraph (1) shall at
a minimum include the following:
(A) A description of best practices by States and
employers in the administration, promotion, and use of
short-time compensation programs (as defined in section
3306(v) of the Internal Revenue Code of 1986).
(B) An analysis of the significant challenges to
State enactment and implementation of short-time
compensation programs.
(C) A survey of employers in States that have not
enacted a short-time compensation program or entered
into an agreement with the Secretary on a short-time
compensation plan to determine the level of interest
among such employers in participating in short-time
compensation programs.
(b) Funding.--There are appropriated, out of any moneys in the
Treasury not otherwise appropriated, to the Secretary of Labor,
$1,500,000 to carry out this section, to remain available without
fiscal year limitation.
Subtitle B--Long-Term Unemployed Hiring Preferences
SEC. 1551. LONG-TERM UNEMPLOYED WORKERS WORK OPPORTUNITY TAX CREDITS.
(a) In General.--Paragraph (3) of section 51(b) of the Internal
Revenue Code is amended by inserting ``$10,000 per year in the case of
any individual who is a qualified long-term unemployed individual by
reason of subsection (d)(11), and'' before ``$12,000 per year''.
(b) Long-Term Unemployed Individuals Tax Credits.--Subsection (d)
of section 51 of the Internal Revenue Code is amended--
(1) in paragraph (1), by striking ``or'' at the end of
subparagraph (H), by striking the period at the end of
subparagraph (I) and inserting ``, or'', and by inserting after
subparagraph (I) the following:
``(J) a qualified long-term unemployed
individual.'', and
(2) by redesignating paragraphs (11) through (14) as
paragraphs (12) through (15), respectively, and by inserting
after paragraph (10) the following new paragraph:
``(11) Qualified long-term unemployed individual.--
``(A) In general.--The term `qualified long-term
unemployed individual' means any individual who was not
a student for at least 6 months during the 1-year
period ending on the hiring date and is certified by
the designated local agency as having aggregate periods
of unemployment during the 1-year period ending on the
hiring date which equal or exceed 6 months.
``(B) Student.--For purposes of this subsection, a
student is an individual enrolled at least half-time in
a program that leads to a degree, certificate, or other
recognized educational credential for at least 6 months
whether or not consecutive during the 1-year period
ending on the hiring date.''.
(c) Simplified Certification.--Section 51(d) of the Internal
Revenue Code, as amended by subsection (b), is amended by adding at the
end the following new paragraph:
``(16) Credit allowed for qualified long-term unemployed
individuals.--
``(A) In general.--Any qualified long-term
unemployed individual under paragraph (11) will be
treated as certified by the designated local agency as
having aggregate periods of unemployment if the
individual is certified by the designated local agency
as being in receipt of unemployment compensation under
State or Federal law for not less than 6 months during
the 1-year period ending on the hiring date.
``(B) Regulatory authority.--The Secretary in his
discretion may provide alternative methods for
certification.''.
(d) Credit Made Available to Tax-Exempt Employers in Certain
Circumstances.--Section 3111(e) of the Internal Revenue Code is
amended--
(1) in the heading for the subsection is amended by
inserting ``and Qualified Long-Term Unemployed Individuals''
after ``Qualified Veterans'',
(2) in paragraph (1) by inserting ``or qualified long-term
unemployed individual'' after ``qualified veteran'',
(3) in paragraph (2) by inserting ``and qualified long-term
unemployed individuals'' after ``qualified veterans'',
(4) in paragraph (3)(C) by inserting ``and qualified long-
term unemployed individual, as the case may be,'' after
``qualified veteran'',
(5) in paragraph (4) by inserting ``or qualified long-term
unemployed individual'' after ``qualified veteran'' both places
it appears, and
(6) in paragraph (5) by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at the
end the following:
``(C) the term `qualified long-term unemployed
individual' has meaning given such term by section
51(d)(11).''.
(e) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after the date of
the enactment of this Act.
Subtitle C--Pathways Back to Work
SEC. 1561. SHORT TITLE.
This subtitle may be cited as the ``Pathways Back to Work Act of
2014''.
SEC. 1562. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the Secretary of Labor
$5,000,000,000 to carry out this subtitle.
SEC. 1563. AVAILABILITY OF FUNDS.
(a) In General.--Of the amounts available under section 1562(b),
the Secretary of Labor shall--
(1) allot $2,000,000,000 in accordance with section 1564 to
provide subsidized employment to unemployed, low-income adults;
(2) allot $1,500,000,000 in accordance with section 1565 to
provide summer and year-round employment opportunities to low-
income youth; and
(3) award $1,500,000,000 in competitive grants in
accordance with section 1566 to local entities to carry out
work-based training and other work-related and educational
strategies and activities of demonstrated effectiveness to
unemployed, low-income adults and low-income youth to provide
the skills and assistance needed to obtain employment.
(b) Reservation.--The Secretary of Labor may reserve not more than
1 percent of amounts available under each of paragraphs (1) through (3)
of subsection (a) for the costs of technical assistance, evaluations
and Federal administration of this Act.
(c) Period of Availability.--The amounts appropriated under this
Act shall be available for obligation by the Secretary of Labor until
December 31, 2014, and shall be available for expenditure by grantees
and subgrantees until September 30, 2015.
SEC. 1564. SUBSIDIZED EMPLOYMENT FOR UNEMPLOYED, LOW-INCOME ADULTS.
(a) In General.--
(1) Allotments.--From the funds available under section
1563(a)(1), the Secretary of Labor shall make an allotment
under subsection (b) to each State that has a State plan
approved under subsection (c) and to each outlying area and
Native American grantee under section 166 of the Workforce
Investment Act of 1998 (as in effect on the day before the date
of enactment of the Workforce Innovation and Opportunity Act)
that meets the requirements of this section, for the purpose of
providing subsidized employment opportunities to unemployed,
low-income adults.
(2) Guidance.--Not later than 30 days after the date of
enactment of this Act, the Secretary of Labor, in coordination
with the Secretary of Health and Human Services, shall issue
guidance regarding the implementation of this section. Such
guidance shall, consistent with this section, include
procedures for the submission and approval of State and local
plans and the allotment and allocation of funds, including
reallotment and reallocation of such funds, that promote the
expeditious and effective implementation of the activities
authorized under this section.
(b) State Allotments.--
(1) Reservations for outlying areas and tribes.--Of the
funds described subsection (a)(1), the Secretary shall
reserve--
(A) not more than one-quarter of 1 percent to
provide assistance to outlying areas to provide
subsidized employment to low-income adults who are
unemployed; and
(B) 1.5 percent to provide assistance to grantees
of the Native American programs under section 166 of
the Workforce Investment Act of 1998 (as in effect on
the day before the date of enactment of the Workforce
Innovation and Opportunity Act) to provide subsidized
employment to low-income adults who are unemployed.
(2) States.--After determining the amounts to be reserved
under paragraph (1), the Secretary of Labor shall allot the
remainder of the amounts described in subsection (a)(1) among
the States as follows--
(A) one-third shall be allotted on the basis of the
relative number of unemployed individuals in areas of
substantial unemployment in each State, compared to the
total number of unemployed individuals in areas of
substantial unemployment in all States;
(B) one-third shall be allotted on the basis of the
relative excess number of unemployed individuals in
each State, compared to the total excess number of
unemployed individuals in all States; and
(C) one-third shall be allotted on the basis of the
relative number of disadvantaged adults and youth in
each State, compared to the total number of
disadvantaged adults and youth in all States.
(3) Definitions.--For purposes of the formula described in
paragraph (2)--
(A) Area of substantial unemployment.--The term
``area of substantial unemployment'' means any
contiguous area with a population of at least 10,000
and that has an average rate of unemployment of at
least 6.5 percent for the most recent 12 months, as
determined by the Secretary.
(B) Disadvantaged adults and youth.--The term
``disadvantaged adults and youth'' means an individual
who is age 16 and older (subject to section
132(b)(1)(B)(v)(I) of the Workforce Investment Act of
1998) who received an income, or is a member of a
family that received a total family income, that, in
relation to family size, does not exceed the higher
of--
(i) the poverty line; or
(ii) 70 percent of the lower living
standard income level.
(C) Excess number.--The term ``excess number''
means, used with respect to the excess number of
unemployed individuals within a State, the higher of--
(i) the number that represents the number
of unemployed individuals in excess of 4.5
percent of the civilian labor force in the
State; or
(ii) the number that represents the number
of unemployed individuals in excess of 4.5
percent of the civilian labor force in areas of
substantial unemployment in such State.
(4) Reallotment.--If the Governor of a State does not
submit a State plan by the time specified in subsection (c), or
a State does not receive approval of a State plan, the amount
the State would have been eligible to receive pursuant to the
formula under paragraph (2) shall be added to the amounts
available for the competitive grants under section 1563(a)(3).
(c) State Plan.--
(1) In general.--For a State to be eligible to receive an
allotment of the funds under subsection (b), the Governor of
the State shall submit to the Secretary of Labor a State plan
in such form and containing such information as the Secretary
may require. At a minimum, such plan shall include--
(A) a description of the strategies and activities
to be carried out by the State, in coordination with
employers in the State, to provide subsidized
employment opportunities to unemployed, low-income
adults, including strategies relating to the level and
duration of subsidies consistent with subsection
(e)(2);
(B) a description of the requirements the State
will apply relating to the eligibility of unemployed,
low-income adults, consistent with section 1568(6), for
subsidized employment opportunities, which may include
criteria to target assistance to particular categories
of such adults, such as individuals with disabilities
or individuals who have exhausted all rights to
unemployment compensation;
(C) a description of how the funds allotted to
provide subsidized employment opportunities will be
administered in the State and local areas, in
accordance with subsection (d);
(D) a description of the performance outcomes to be
achieved by the State through the activities carried
out under this section and the processes the State will
use to track performance, consistent with guidance
provided by the Secretary of Labor regarding such
outcomes and processes and with section 1567(b);
(E) a description of the coordination of activities
to be carried out with the funds provided under this
section with activities under title I of the Workforce
Investment Act of 1998 (as in effect on the day before
the date of enactment of the Workforce Innovation and
Opportunity Act), the TANF program under part A of
title IV of the Social Security Act, and other
appropriate Federal and State programs that may assist
unemployed, low-income adults in obtaining and
retaining employment;
(F) a description of the timelines for
implementation of the activities described in
subparagraph (A), and the number of unemployed, low-
income adults expected to be placed in subsidized
employment by quarter;
(G) assurances that the State will report such
information as the Secretary of Labor may require
relating to fiscal, performance and other matters that
the Secretary determines is necessary to effectively
monitor the activities carried out under this section;
and
(H) assurances that the State will ensure
compliance with the labor standards and protections
described in section 1567(a) of this Act.
(2) Submission and approval of state plan.--
(A) Submission with other plans.--The State plan
described in this subsection may be submitted in
conjunction with the State plan modification or request
for funds required under section 1565, and may be
submitted as a modification to a State plan that has
been approved under section 112 of the Workforce
Investment Act of 1998.
(B) Submission and approval.--
(i) Submission.--The Governor shall submit
a plan to the Secretary of Labor not later than
75 days after the enactment of this Act and the
Secretary of Labor shall make a determination
regarding the approval or disapproval of such
plans not later than 45 days after the
submission of such plan. If the plan is
disapproved, the Secretary of Labor may provide
a reasonable period of time in which a
disapproved plan may be amended and resubmitted
for approval.
(ii) Approval.--The Secretary of Labor
shall approve a State plan that the Secretary
determines is consistent with requirements of
this section and reasonably appropriate and
adequate to carry out the purposes of this
section. If the plan is approved, the Secretary
shall allot funds to States within 30 days
after such approval.
(3) Modifications to state plan.--The Governor may submit a
modification to a State plan under this subsection consistent
with the requirements of this section.
(d) Administration Within the State.--
(1) Option.--The State may administer the funds for
activities under this section through--
(A) the State and local entities responsible for
the administration of the adult formula program under
subtitle B of title I of the Workforce Investment Act
of 1998 (as in effect on the day before the date of
enactment of the Workforce Innovation and Opportunity
Act);
(B) the entities responsible for the administration
of the TANF program under part A of title IV of the
Social Security Act; or
(C) a combination of the entities described in
subparagraphs (A) and (B).
(2) Within-state allocations.--
(A) Allocation of funds.--The Governor may reserve
up to 5 percent of the allotment under subsection
(b)(2) for administration and technical assistance, and
shall allocate the remainder, in accordance with the
option elected under paragraph (1)--
(i) among local workforce investment areas
within the State in accordance with the factors
identified in subsection (b)(2), except that
for purposes of such allocation references to a
State in such paragraph shall be deemed to be
references to a local workforce investment area
and references to all States shall be deemed to
be references to all local areas in the State
involved, of which not more than 10 percent of
the funds allocated to a local workforce
investment area may be used for the costs of
administration of this section; or
(ii) through entities responsible for the
administration of the TANF program under part A
of title IV of the Social Security Act in local
areas in such manner as the State may determine
appropriate.
(B) Local plans.--
(i) In general.--In the case where the
responsibility for the administration of
activities is to be carried out by the entities
described under paragraph (1)(A), in order to
receive an allocation under subparagraph
(A)(i), a local workforce investment board, in
partnership with the chief elected official of
the local workforce investment area involved,
shall submit to the Governor a local plan for
the use of such funds under this section not
later than 30 days after the submission of the
State plan. Such local plan may be submitted as
a modification to a local plan approved under
section 118 of the Workforce Investment Act of
1998 (as in effect on the day before the date
of enactment of the Workforce Innovation and
Opportunity Act).
(ii) Contents.--The local plan described in
clause (i) shall contain the elements described
in subparagraphs (A)-(H) of subsection (c)(1),
as applied to the local workforce investment
area.
(iii) Approval.--The Governor shall approve
or disapprove the local plan submitted under
clause (i) within 30 days after submission, or
if later, 30 days after the approval of the
State plan. The Governor shall approve the plan
unless the Governor determines that the plan is
inconsistent with requirements of this section
or is not reasonably appropriate and adequate
to carry out the purposes of this section. If
the Governor has not made a determination
within the period specified under the first
sentence of this clause, the plan shall be
considered approved. If the plan is
disapproved, the Governor may provide a
reasonable period of time in which a
disapproved plan may be amended and resubmitted
for approval. The Governor shall allocate funds
to local workforce investment areas with
approved plans within 30 days after such
approval.
(C) Reallocation of funds to local areas.--If a
local workforce investment board does not submit a
local plan by the time specified in subparagraph (B) or
the Governor does not approve a local plan, the amount
the local workforce investment area would have been
eligible to receive pursuant to the formula under
subparagraph (A)(i) shall be allocated to local
workforce investment areas that receive approval of the
local plan under subparagraph (B). Such reallocations
shall be made in accordance with the relative share of
the allocations to such local workforce investment
areas applying the formula factors described under
subparagraph (A)(i).
(e) Use of Funds.--
(1) In general.--The funds under this section shall be used
to provide subsidized employment for unemployed, low-income
adults. The State and local entities described in subsection
(d)(1) may use a variety of strategies in recruiting employers
and identifying appropriate employment opportunities, with a
priority to be provided to employment opportunities likely to
lead to unsubsidized employment in emerging or in-demand
occupations in the local area. Funds under this section may be
used to provide support services, such as transportation and
child care, that are necessary to enable the participation of
individuals in subsidized employment opportunities.
(2) Level of subsidy and duration.--The States or local
entities described in subsection (d)(1) may determine the
percentage of the wages and costs of employing a participant
for which an employer may receive a subsidy with the funds
provided under this section, and the duration of such subsidy,
in accordance with guidance issued by the Secretary. The State
or local entities may establish criteria for determining such
percentage or duration using appropriate factors such as the
size of the employer and types of employment.
(f) Coordination of Federal Administration.--The Secretary of Labor
shall administer this section in coordination with the Secretary of
Health and Human Services to ensure the effective implementation of
this section.
SEC. 1565. SUMMER EMPLOYMENT AND YEAR-ROUND EMPLOYMENT OPPORTUNITIES
FOR LOW-INCOME YOUTH.
(a) In General.--From the funds available under section 1563(a)(2),
the Secretary of Labor shall make an allotment under subsection (c) to
each State that has a State plan modification (or other form of request
for funds specified in guidance under subsection (b)) approved under
subsection (d) and to each outlying area and Native American grantee
under section 166 of the Workforce Investment Act of 1998 (as in effect
on the day before the date of enactment of the Workforce Innovation and
Opportunity Act) that meets the requirements of this section, for the
purpose of providing summer employment and year-round employment
opportunities to low-income youth.
(b) Guidance and Application of Requirements.--
(1) Guidance.--Not later than 20 days after the date of
enactment of this Act, the Secretary of Labor shall issue
guidance regarding the implementation of this section. Such
guidance shall, consistent with this section, include
procedures for the submission and approval of State plan
modifications, or for forms of requests for funds by the State
as may be identified in such guidance, local plan
modifications, or other forms of requests for funds from local
workforce investment areas as may be identified in such
guidance, and the allotment and allocation of funds, including
reallotment and reallocation of such funds, that promote the
expeditious and effective implementation of the activities
authorized under this section.
(2) Requirements.--Except as otherwise provided in the
guidance described in paragraph (1) and in this section and
other provisions of this Act, the funds provided for activities
under this section shall be administered in accordance with
subtitles B and E of title I of the Workforce Investment Act of
1998 (as in effect on the day before the date of enactment of
the Workforce Innovation and Opportunity Act) relating to youth
activities.
(c) State Allotments.--
(1) Reservations for outlying areas and tribes.--Of the
funds described subsection (a), the Secretary shall reserve--
(A) not more than one-quarter of 1 percent to
provide assistance to outlying areas to provide summer
and year-round employment opportunities to low-income
youth; and
(B) 1.5 percent to provide assistance to grantees
of the Native American programs under section 166 of
the Workforce Investment Act of 1998 (as in effect on
the day before the date of enactment of the Workforce
Innovation and Opportunity Act) to provide summer and
year-round employment opportunities to low-income
youth.
(2) States.--After determining the amounts to be reserved
under paragraph (1), the Secretary of Labor shall allot the
remainder of the amounts described in subsection (a) among the
States in accordance with the factors described in section
1564(b)(2) of this Act.
(3) Reallotment.--If the Governor of a State does not
submit a State plan modification or other request for funds
specified in guidance under subsection (b) by the time
specified in subsection (d)(2)(B), or a State does not receive
approval of such State plan modification or request, the amount
the State would have been eligible to receive pursuant to the
formula under paragraph (2) shall be added to the amounts
available for the competitive grants under section 1563(a)(3).
(d) State Plan Modification.--
(1) In general.--For a State to be eligible to receive an
allotment of the funds under subsection (c), the Governor of
the State shall submit to the Secretary of Labor a modification
to a State plan approved under section 112 of the Workforce
Investment Act of 1998 (as in effect on the day before the date
of enactment of the Workforce Innovation and Opportunity Act),
or other request for funds described in guidance in subsection
(b), in such form and containing such information as the
Secretary may require. At a minimum, such plan modification or
request shall include--
(A) a description of the strategies and activities
to be carried out to provide summer employment
opportunities and year-round employment opportunities,
including the linkages to educational activities,
consistent with subsection (f);
(B) a description of the requirements the States
will apply relating to the eligibility of low-income
youth, consistent with section 1568(4), for summer
employment opportunities and year-round employment
opportunities, which may include criteria to target
assistance to particular categories of such low-income
youth, such as youth with disabilities, consistent with
subsection (f);
(C) a description of the performance outcomes to be
achieved by the State through the activities carried
out under this section and the processes the State will
use to track performance, consistent with guidance
provided by the Secretary of Labor regarding such
outcomes and processes and with section 1567(b);
(D) a description of the timelines for
implementation of the activities described in
subparagraph (A), and the number of low-income youth
expected to be placed in summer employment
opportunities, and year-round employment opportunities,
respectively, by quarter;
(E) assurances that the State will report such
information as the Secretary may require relating to
fiscal, performance and other matters that the
Secretary determines is necessary to effectively
monitor the activities carried out under this section;
and
(F) assurances that the State will ensure
compliance with the labor standards protections
described in section 1567(a).
(2) Submission and approval of state plan modification or
request.--
(A) Submission.--The Governor shall submit a
modification of the State plan or other request for
funds described in guidance in subsection (b) to the
Secretary of Labor not later than 30 days after the
issuance of such guidance. The State plan modification
or request for funds required under this subsection may
be submitted in conjunction with the State plan
required under section 1564.
(B) Approval.--The Secretary of Labor shall approve
the plan or request submitted under subparagraph (A)
within 30 days after submission, unless the Secretary
determines that the plan or request is inconsistent
with the requirements of this section. If the Secretary
has not made a determination within 30 days, the plan
or request shall be considered approved. If the plan or
request is disapproved, the Secretary may provide a
reasonable period of time in which a disapproved plan
or request may be amended and resubmitted for approval.
If the plan or request is approved, the Secretary shall
allot funds to States within 30 days after such
approval.
(3) Modifications to state plan or request.--The Governor
may submit further modifications to a State plan or request for
funds identified under subsection (b) to carry out this section
in accordance with the requirements of this section.
(e) Within-State Allocation and Administration.--
(1) In general.--Of the funds allotted to the State under
subsection (c), the Governor--
(A) may reserve up to 5 percent of the allotment
for administration and technical assistance; and
(B) shall allocate the remainder of the allotment
among local workforce investment areas within the State
in accordance with the factors identified in section
1564(b)(2), except that for purposes of such allocation
references to a State in such paragraph shall be deemed
to be references to a local workforce investment area
and references to all States shall be deemed to be
references to all local areas in the State involved.
Not more than 10 percent of the funds allocated to a
local workforce investment area may be used for the
costs of administration of this section.
(2) Local plan.--
(A) Submission.--In order to receive an allocation
under paragraph (1)(B), the local workforce investment
board, in partnership with the chief elected official
for the local workforce investment area involved, shall
submit to the Governor a modification to a local plan
approved under section 118 of the Workforce Investment
Act of 1998 (as in effect on the day before the date of
enactment of the Workforce Innovation and Opportunity
Act), or other form of request for funds as may be
identified in the guidance issued under subsection (b),
not later than 30 days after the submission by the
State of the modification to the State plan or other
request for funds identified in subsection (b),
describing the strategies and activities to be carried
out under this section.
(B) Approval.--The Governor shall approve the local
plan submitted under subparagraph (A) within 30 days
after submission, unless the Governor determines that
the plan is inconsistent with requirements of this
section. If the Governor has not made a determination
within 30 days, the plan shall be considered approved.
If the plan is disapproved, the Governor may provide a
reasonable period of time in which a disapproved plan
may be amended and resubmitted for approval. The
Governor shall allocate funds to local workforce
investment areas with approved plans within 30 days
after approval.
(3) Reallocation.--If a local workforce investment board
does not submit a local plan modification (or other request for
funds identified in guidance under subsection (b)) by the time
specified in paragraph (2), or does not receive approval of a
local plan, the amount the local workforce investment area
would have been eligible to receive pursuant to the formula
under paragraph (1)(B) shall be allocated to local workforce
investment areas that receive approval of the local plan
modification or request for funds under paragraph (2). Such
reallocations shall be made in accordance with the relative
share of the allocations to such local workforce investment
areas applying the formula factors described under paragraph
(1)(B).
(f) Use of Funds.--
(1) In general.--The funds provided under this section
shall be used--
(A) to provide summer employment opportunities for
low-income youth, ages 16 through 24, with direct
linkages to academic and occupational learning, and may
include the provision of supportive services, such as
transportation or child care, necessary to enable such
youth to participate; and
(B) to provide year-round employment opportunities,
which may be combined with other activities authorized
under section 129 of the Workforce Investment Act of
1998 (as in effect on the day before the date of
enactment of the Workforce Innovation and Opportunity
Act), to low-income youth, ages 16 through 24, with a
priority to out-of school youth who are--
(i) high school dropouts; or
(ii) recipients of a secondary school
diploma or its equivalent but who are basic
skills deficient unemployed or underemployed.
(2) Program priorities.--In administering the funds under
this section, the local board and local chief elected officials
shall give a priority to--
(A) identifying employment opportunities that are--
(i) in emerging or in-demand occupations in
the local workforce investment area; or
(ii) in the public or nonprofit sector that
meet community needs; and
(B) linking year-round program participants to
training and educational activities that will provide
such participants an industry-recognized certificate or
credential.
(3) Performance accountability.--For activities funded
under this section, in lieu of the requirements described in
section 136 of the Workforce Investment Act of 1998 (as in
effect on the day before the date of enactment of the Workforce
Innovation and Opportunity Act), State and local workforce
investment areas shall provide such reports as the Secretary of
Labor may require regarding the performance outcomes described
in section 1567(a)(5).
SEC. 1566. WORK-BASED EMPLOYMENT STRATEGIES OF DEMONSTRATED
EFFECTIVENESS.
(a) In General.--From the funds available under section 1563(a)(3),
the Secretary of Labor shall award grants on a competitive basis to
eligible entities to carry out work-based strategies of demonstrated
effectiveness.
(b) Use of Funds.--The grants awarded under this section shall be
used to support strategies and activities of demonstrated effectiveness
that are designed to provide unemployed, low-income adults or low-
income youth with the skills that will lead to employment as part of or
upon completion of participation in such activities. Such strategies
and activities may include--
(1) on-the-job training, registered apprenticeship
programs, or other programs that combine work with skills
development;
(2) sector-based training programs that have been designed
to meet the specific requirements of an employer or group of
employers in that sector and where employers are committed to
hiring individuals upon successful completion of the training;
(3) training that supports an industry sector or an
employer-based or labor-management committee industry
partnership which includes a significant work-experience
component;
(4) acquisition of industry-recognized credentials in a
field identified by the State or local workforce investment
area as a growth sector or demand industry in which there are
likely to be significant job opportunities in the short term;
(5) connections to immediate work opportunities, including
subsidized employment opportunities, or summer employment
opportunities for youth, that includes concurrent skills
training and other supports;
(6) career academies that provide students with the
academic preparation and training, including paid internships
and concurrent enrollment in community colleges or other
postsecondary institutions, needed to pursue a career pathway
that leads to postsecondary credentials and high-demand jobs;
and
(7) adult basic education and integrated basic education
and training models for low-skilled adults, hosted at community
colleges or at other sites, to prepare individuals for jobs
that are in demand in a local area.
(c) Eligible Entity.--An eligible entity shall include a local
chief elected official, in collaboration with the local workforce
investment board for the local workforce investment area involved
(which may include a partnership with of such officials and boards in
the region and in the State), or an entity eligible to apply for an
Indian and Native American grant under section 166 of the Workforce
Investment Act of 1998 (as in effect on the day before the date of
enactment of the Workforce Innovation and Opportunity Act), and may
include, in partnership with such officials, boards, and entities, the
following--
(1) employers or employer associations;
(2) adult education providers and postsecondary educational
institutions, including community colleges;
(3) community-based organizations;
(4) joint labor-management committees;
(5) work-related intermediaries; or
(6) other appropriate organizations.
(d) Application.--An eligible entity seeking to receive a grant
under this section shall submit to the Secretary of Labor an
application at such time, in such manner, and containing such
information as the Secretary may require. At a minimum, the application
shall--
(1) describe the strategies and activities of demonstrated
effectiveness that the eligible entities will carry out to
provide unemployed, low-income adults and low-income youth with
the skills that will lead to employment upon completion of
participation in such activities;
(2) describe the requirements that will apply relating to
the eligibility of unemployed, low-income adults or low-income
youth, consistent with paragraphs (4) and (6) of section 1568,
for activities carried out under this section, which may
include criteria to target assistance to particular categories
of such adults and youth, such as individuals with disabilities
or individuals who have exhausted all rights to unemployment
compensation;
(3) describe how the strategies and activities address the
needs of the target populations identified in paragraph (2) and
the needs of employers in the local area;
(4) describe the expected outcomes to be achieved by
implementing the strategies and activities;
(5) provide evidence that the funds provided may be
expended expeditiously and efficiently to implement the
strategies and activities;
(6) describe how the strategies and activities will be
coordinated with other Federal, State and local programs
providing employment, education and supportive activities;
(7) provide evidence of employer commitment to participate
in the activities funded under this section, including
identification of anticipated occupational and skill needs;
(8) provide assurances that the grant recipient will report
such information as the Secretary may require relating to
fiscal, performance and other matters that the Secretary
determines is necessary to effectively monitor the activities
carried out under this section; and
(9) provide assurances that the use of the funds provided
under this section will comply with the labor standards and
protections described section 1567(a).
(e) Priority in Awards.--In awarding grants under this section, the
Secretary of Labor shall give a priority to applications submitted by
eligible entities from areas of high poverty and high unemployment, as
defined by the Secretary, such as Public Use Microdata Areas (PUMAs) as
designated by the Census Bureau.
(f) Coordination of Federal Administration.--The Secretary of Labor
shall administer this section in coordination with the Secretary of
Education, Secretary of Health and Human Services, and other
appropriate agency heads, to ensure the effective implementation of
this section.
SEC. 1567. GENERAL REQUIREMENTS.
(a) Labor Standards and Protections.--Activities provided with
funds under this Act shall be subject to the requirements and
restrictions, including the labor standards, described in section 181
of the Workforce Investment Act of 1998 (as in effect on the day before
the date of enactment of the Workforce Innovation and Opportunity Act)
and the nondiscrimination provisions of section 188 of such Act, in
addition to other applicable Federal laws.
(b) Reporting.--The Secretary may require the reporting of
information relating to fiscal, performance and other matters that the
Secretary determines is necessary to effectively monitor the activities
carried out with funds provided under this Act. At a minimum, grantees
and subgrantees shall provide information relating to--
(1) the number individuals participating in activities with
funds provided under this Act and the number of such
individuals who have completed such participation;
(2) the expenditures of funds provided under the Act;
(3) the number of jobs created pursuant to the activities
carried out under this Act;
(4) the demographic characteristics of individuals
participating in activities under this Act; and
(5) the performance outcomes of individuals participating
in activities under this Act, including--
(A) for adults participating in activities funded
under section 1564 of this Act--
(i) entry in unsubsidized employment,
(ii) retention in unsubsidized employment,
and
(iii) earnings in unsubsidized employment;
(B) for low-income youth participating in summer
employment activities under sections 1565 and 1566--
(i) work readiness skill attainment using
an employer validated checklist; and
(ii) placement in or return to secondary or
postsecondary education or training, or entry
into unsubsidized employment;
(C) for low-income youth participating in year-
round employment activities under section 1565 or in
activities under section 1566--
(i) placement in or return to post-
secondary education;
(ii) attainment of high school diploma or
its equivalent;
(iii) attainment of an industry-recognized
credential; and
(iv) entry into unsubsidized employment,
retention, and earnings as described in
subparagraph (A); and
(D) for unemployed, low-income adults participating
in activities under section 1566--
(i) entry into unsubsidized employment,
retention, and earnings as described in
subparagraph (A); and
(ii) the attainment of industry-recognized
credentials.
(c) Activities Required To Be Additional.--Funds provided under
this Act shall only be used for activities that are in addition to
activities that would otherwise be available in the State or local area
in the absence of such funds.
(d) Additional Requirements.--The Secretary of Labor may establish
such additional requirements as the Secretary determines may be
necessary to ensure fiscal integrity, effective monitoring, and the
appropriate and prompt implementation of the activities under this Act.
(e) Report of Information and Evaluations to Congress and the
Public.--The Secretary of Labor shall provide to the appropriate
Committees of the Congress and make available to the public the
information reported pursuant to subsection (b) and the evaluations of
activities carried out pursuant to the funds reserved under section
1563(b).
SEC. 1568. DEFINITIONS.
In this subtitle:
(1) Local chief elected official.--The term ``local chief
elected official'' means the chief elected executive officer of
a unit of local government in a local workforce investment area
or in the case where more than one unit of general government,
the individuals designated under an agreement described in
section 117(c)(1)(B) of the Workforce Investment Act of 1998
(as in effect on the day before the date of enactment of the
Workforce Innovation and Opportunity Act).
(2) Local workforce investment area.--The term ``local
workforce investment area'' means such area designated under
section 116 of the Workforce Investment Act of 1998 (as in
effect on the day before the date of enactment of the Workforce
Innovation and Opportunity Act).
(3) Local workforce investment board.--The term ``local
workforce investment board'' means such board established under
section 117 of the Workforce Investment Act of 1998 (as in
effect on the day before the date of enactment of the Workforce
Innovation and Opportunity Act).
(4) Low-income youth.--The term ``low-income youth'' means
an individual who--
(A) is aged 16 through 24;
(B) meets the definition of a low-income individual
provided in section 101(25) of the Workforce Investment
Act of 1998 (as in effect on the day before the date of
enactment of the Workforce Innovation and Opportunity
Act), except that States, local workforce investment
areas under section 1565 and eligible entities under
section 1566(c), subject to approval in the applicable
State plans, local plans, and applications for funds,
may increase the income level specified in subparagraph
(B)(i) of such section to an amount not in excess of
200 percent of the poverty line for purposes of
determining eligibility for participation in activities
under sections 1565 and 1566 of this Act; and
(C) is in one or more of the categories specified
in section 101(13)(C) of the Workforce Investment Act
of 1998, as in effect on the day before the date of
enactment of the Workforce Innovation and Opportunity
Act.
(5) Outlying area.--The term ``outlying area'' means the
United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and the Republic
of Palau.
(6) Unemployed, low-income adult.--The term ``unemployed,
low-income adult'' means an individual who--
(A) is age 18 or older;
(B) is without employment and is seeking assistance
under this subtitle to obtain employment; and
(C) meets the definition of a ``low-income
individual'' under section 101(25) of the Workforce
Investment Act of 1998 (as in effect on the day before
the date of enactment of the Workforce Innovation and
Opportunity Act), except that for that States, local
entities described in section 1564(d)(1) and eligible
entities under section 1566(c), subject to approval in
the applicable State plans, local plans, and
applications for funds, may increase the income level
specified in subparagraph (B)(i) of such section to an
amount not in excess of 200 percent of the poverty line
for purposes of determining eligibility for
participation in activities under sections 1564 and
1566 of this Act.
(7) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and
Puerto Rico.
Subtitle D--Prohibition of Discrimination in Employment on the Basis of
an Individual's Status as Unemployed
SEC. 1571. SHORT TITLE.
This subtitle may be cited as the ``Fair Employment Opportunity Act
of 2014''.
SEC. 1572. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that denial of employment
opportunities to individuals because of their status as unemployed is
discriminatory and burdens commerce by--
(1) reducing personal consumption and undermining economic
stability and growth;
(2) squandering human capital essential to the Nation's
economic vibrancy and growth;
(3) increasing demands for Federal and State unemployment
insurance benefits, reducing trust fund assets, and leading to
higher payroll taxes for employers, cuts in benefits for
jobless workers, or both;
(4) imposing additional burdens on publicly funded health
and welfare programs; and
(5) depressing income, property, and other tax revenues
that the Federal Government, States, and localities rely on to
support operations and institutions essential to commerce.
(b) Purposes.--The purposes of this subtitle are--
(1) to prohibit employers and employment agencies from
disqualifying an individual from employment opportunities
because of that individual's status as unemployed;
(2) to prohibit employers and employment agencies from
publishing or posting any advertisement or announcement for an
employment opportunity that indicates that an individual's
status as unemployed disqualifies that individual for the
opportunity; and
(3) to eliminate the burdens imposed on commerce due to the
exclusion of such individuals from employment.
SEC. 1573. DEFINITIONS.
As used in this subtitle--
(1) the term ``affected individual'' means any person who
was subject to an unlawful employment practice solely because
of that individual's status as unemployed;
(2) the term ``Commission'' means the Equal Employment
Opportunity Commission;
(3) the term ``employee'' means--
(A) an employee as defined in section 701(f) of the
Civil Rights Act of 1964 (42 U.S.C. 2000e(f));
(B) a State employee to which section 302(a)(1) of
the Government Employee Rights Act of 1991 (42 U.S.C.
2000e-16b(a)(1)) applies;
(C) a covered employee, as defined in section 101
of the Congressional Accountability Act of 1995 (2
U.S.C. 1301) or section 411(c) of title 3, United
States Code; or
(D) an employee or applicant to which section
717(a) of the Civil Rights Act of 1964 (42 U.S.C.
2000e-16(a)) applies;
(4) the term ``employer'' means--
(A) a person engaged in an industry affecting
commerce (as defined in section 701(h) of the Civil
Rights Act of 1964 (42 U.S.C. 2000e(h)) who has 15 or
more employees for each working day in each of 20 or
more calendar weeks in the current or preceding
calendar year, and any agent of such a person, but does
not include a bona fide private membership club that is
exempt from taxation under section 501(c) of the
Internal Revenue Code of 1986;
(B) an employing authority to which section
302(a)(1) of the Government Employee Rights Act of 1991
applies;
(C) an employing office, as defined in section 101
of the Congressional Accountability Act of 1995 or
section 411(c) of title 3, United States Code; or
(D) an entity to which section 717(a) of the Civil
Rights Act of 1964 (42 U.S.C. 2000e-16(a)) applies;
(5) the term ``employment agency'' means any person
regularly undertaking with or without compensation to procure
employees for an employer or to procure for individuals
opportunities to work as employees for an employer and includes
an agent of such a person, and any person who maintains an
Internet website or print medium that publishes advertisements
or announcements of openings in jobs for employees;
(6) the term ``person'' has the meaning given the term in
section 701(a) of the Civil Rights Act of 1964 (42 U.S.C.
2000e(a)); and
(7) the term ``status as unemployed'', used with respect to
an individual, means that the individual, at the time of
application for employment or at the time of action alleged to
violate this subtitle, does not have a job, is available for
work and is searching for work.
SEC. 1574. PROHIBITED ACTS.
(a) Employers.--It shall be an unlawful employment practice for an
employer to--
(1) publish in print, on the Internet, or in any other
medium, an advertisement or announcement for an employee for
any job that includes--
(A) any provision stating or indicating that an
individual's status as unemployed disqualifies the
individual for any employment opportunity; or
(B) any provision stating or indicating that an
employer will not consider or hire an individual for
any employment opportunity based on that individual's
status as unemployed;
(2) fail or refuse to consider for employment, or fail or
refuse to hire, an individual as an employee because of the
individual's status as unemployed; or
(3) direct or request that an employment agency take an
individual's status as unemployed into account to disqualify an
applicant for consideration, screening, or referral for
employment as an employee.
(b) Employment Agencies.--It shall be an unlawful employment
practice for an employment agency to--
(1) publish, in print or on the Internet or in any other
medium, an advertisement or announcement for any vacancy in a
job, as an employee, that includes--
(A) any provision stating or indicating that an
individual's status as unemployed disqualifies the
individual for any employment opportunity; or
(B) any provision stating or indicating that the
employment agency or an employer will not consider or
hire an individual for any employment opportunity based
on that individual's status as unemployed;
(2) screen, fail or refuse to consider, or fail or refuse
to refer an individual for employment as an employee because of
the individual's status as unemployed; or
(3) limit, segregate, or classify any individual in any
manner that would limit or tend to limit the individual's
access to information about jobs, or consideration, screening,
or referral for jobs, as employees, solely because of an
individual's status as unemployed.
(c) Interference With Rights, Proceedings or Inquiries.--It shall
be unlawful for any employer or employment agency to--
(1) interfere with, restrain, or deny the exercise of or
the attempt to exercise, any right provided under this
subtitle; or
(2) fail or refuse to hire, to discharge, or in any other
manner to discriminate against any individual, as an employee,
because such individual--
(A) opposed any practice made unlawful by this
subtitle;
(B) has asserted any right, filed any charge, or
has instituted or caused to be instituted any
proceeding, under or related to this subtitle;
(C) has given, or is about to give, any information
in connection with any inquiry or proceeding relating
to any right provided under this subtitle; or
(D) has testified, or is about to testify, in any
inquiry or proceeding relating to any right provided
under this subtitle.
(d) Construction.--Nothing in this subtitle is intended to preclude
an employer or employment agency from considering an individual's
employment history, or from examining the reasons underlying an
individual's status as unemployed, in assessing an individual's ability
to perform a job or in otherwise making employment decisions about that
individual. Such consideration or examination may include an assessment
of whether an individual's employment in a similar or related job for a
period of time reasonably proximate to the consideration of such
individual for employment is job-related or consistent with business
necessity.
SEC. 1575. ENFORCEMENT.
(a) Enforcement Powers.--With respect to the administration and
enforcement of this subtitle--
(1) the Commission shall have the same powers as the
Commission has to administer and enforce--
(A) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.); or
(B) sections 302 and 304 of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c),
in the case of an affected individual who would be
covered by such title, or by section 302(a)(1) of the
Government Employee Rights Act of 1991 (42 U.S.C.
2000e-16b(a)(1)), respectively;
(2) the Librarian of Congress shall have the same powers as
the Librarian of Congress has to administer and enforce title
VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.)
in the case of an affected individual who would be covered by
such title;
(3) the Board (as defined in section 101 of the
Congressional Accountability Act of 1995 (2 U.S.C. 1301)) shall
have the same powers as the Board has to administer and enforce
the Congressional Accountability Act of 1995 (2 U.S.C. 1301 et
seq.) in the case of an affected individual who would be
covered by section 201(a)(1) of such Act (2 U.S.C. 1311(a)(1));
(4) the Attorney General shall have the same powers as the
Attorney General has to administer and enforce--
(A) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.); or
(B) sections 302 and 304 of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c);
in the case of an affected individual who would be
covered by such title, or of section 302(a)(1) of the
Government Employee Rights Act of 1991 (42 U.S.C.
2000e-16b(a)(1)), respectively;
(5) the President, the Commission, and the Merit Systems
Protection Board shall have the same powers as the President,
the Commission, and the Board, respectively, have to administer
and enforce chapter 5 of title 3, United States Code, in the
case of an affected individual who would be covered by section
411 of such title; and
(6) a court of the United States shall have the same
jurisdiction and powers as the court has to enforce--
(A) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.) in the case of a claim alleged by
such individual for a violation of such title;
(B) sections 302 and 304 of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c)
in the case of a claim alleged by such individual for a
violation of section 302(a)(1) of such Act (42 U.S.C.
2000e-16b(a)(1));
(C) the Congressional Accountability Act of 1995 (2
U.S.C. 1301 et seq.) in the case of a claim alleged by
such individual for a violation of section 201(a)(1) of
such Act (2 U.S.C. 1311(a)(1)); and
(D) chapter 5 of title 3, United States Code, in
the case of a claim alleged by such individual for a
violation of section 411 of such title.
(b) Procedures.--The procedures applicable to a claim alleged by an
individual for a violation of this subtitle are--
(1) the procedures applicable for a violation of title VII
of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) in
the case of a claim alleged by such individual for a violation
of such title;
(2) the procedures applicable for a violation of section
302(a)(1) of the Government Employee Rights Act of 1991 (42
U.S.C. 2000e-16b(a)(1)) in the case of a claim alleged by such
individual for a violation of such section;
(3) the procedures applicable for a violation of section
201(a)(1) of the Congressional Accountability Act of 1995 (2
U.S.C. 1311(a)(1)) in the case of a claim alleged by such
individual for a violation of such section; and
(4) the procedures applicable for a violation of section
411 of title 3, United States Code, in the case of a claim
alleged by such individual for a violation of such section.
(c) Remedies.--
(1) In any claim alleging a violation of section 1574(a)(1)
or 1574(b)(1) of this subtitle, an individual, or any person
acting on behalf of the individual as set forth in section
1575(a) of this subtitle, may be awarded, as appropriate:
(A) An order enjoining the respondent from engaging
in the unlawful employment practice.
(B) Reimbursement of costs expended as a result of
the unlawful employment practice.
(C) An amount in liquidated damages not to exceed
$1,000 for each day of the violation.
(D) Reasonable attorney's fees (including expert
fees) and costs attributable to the pursuit of a claim
under this subtitle, except that no person identified
in section 733(a) of this subtitle shall be eligible to
receive attorney's fees.
(2) In any claim alleging a violation of any other
subsection of this subtitle, an individual, or any person
acting on behalf of the individual as set forth in section
1575(a) of this subtitle, may be awarded, as appropriate, the
remedies available for a violation of title VII of the Civil
Rights Act of 1964 (42 U.S.C. 2000e et seq.), section 302(a)(1)
of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e-
16b(a)(1)), section 201(a)(1) of the Congressional
Accountability Act of 1995 (2 U.S.C. 1311(a)(1)), and section
411 of title 3, United States Code, except that in a case in
which wages, salary, employment benefits, or other compensation
have not been denied or lost to the individual, damages may be
awarded in an amount not to exceed $5,000.
SEC. 1576. FEDERAL AND STATE IMMUNITY.
(a) Abrogation of State Immunity.--A State shall not be immune
under the 11th Amendment to the Constitution from a suit brought in a
Federal court of competent jurisdiction for a violation of this
subtitle.
(b) Waiver of State Immunity.--
(1) In general.--
(A) Waiver.--A State's receipt or use of Federal
financial assistance for any program or activity of a
State shall constitute a waiver of sovereign immunity,
under the 11th Amendment to the Constitution or
otherwise, to a suit brought by an employee or
applicant for employment of that program or activity
under this subtitle for a remedy authorized under
section 1575(c) of this subtitle.
(B) Definition.--In this paragraph, the term
``program or activity'' has the meaning given the term
in section 606 of the Civil Rights Act of 1964 (42
U.S.C. 2000d-4a).
(2) Effective date.--With respect to a particular program
or activity, paragraph (1) applies to conduct occurring on or
after the day, after the date of enactment of this Act, on
which a State first receives or uses Federal financial
assistance for that program or activity.
(c) Remedies Against State Officials.--An official of a State may
be sued in the official capacity of the official by any employee or
applicant for employment who has complied with the applicable
procedures of this subtitle, for relief that is authorized under this
subtitle.
(d) Remedies Against the United States and the States.--
Notwithstanding any other provision of this subtitle, in an action or
administrative proceeding against the United States or a State for a
violation of this subtitle, remedies (including remedies at law and in
equity) are available for the violation to the same extent as such
remedies would be available against a non-governmental entity.
SEC. 1577. RELATIONSHIP TO OTHER LAWS.
This subtitle shall not invalidate or limit the rights, remedies,
or procedures available to an individual claiming discrimination
prohibited under any other Federal law or regulation or any law or
regulation of a State or political subdivision of a State.
SEC. 1578. SEVERABILITY.
If any provision of this subtitle, or the application of the
provision to any person or circumstance, is held to be invalid, the
remainder of this subtitle and the application of the provision to any
other person or circumstances shall not be affected by the invalidity.
SEC. 1579. EFFECTIVE DATE.
This subtitle shall take effect on the date of enactment of this
Act and shall not apply to conduct occurring before the effective date.
TITLE XVI--LIVING AMERICAN WAGE
SEC. 1601. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--Congress finds the following:
(1) In 2012, there were over 46,500,000 Americans living in
poverty who were separated from the opportunities of the Nation
by their income, their housing, and their access to education,
jobs, and health care.
(2) A full-time worker earning the Federal minimum wage
earns an income below the Federal poverty threshold for a
family of 4, consisting of 2 adults and 2 children.
(3) The average fair market rent for a 1-bedroom apartment
is more than 65 percent of the monthly income of a full-time
worker earning the minimum wage. In comparison, the generally
accepted definition of affordability is for a household to pay
not more than 30 percent of its income on housing.
(4) Two full-time workers earning the Federal minimum wage
earn an income below the national housing wage for a 1-bedroom
apartment, the amount a person needs to earn to afford a 1-
bedroom apartment at average rent.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Federal minimum wage should, as a minimum, be
adjusted every 4 years so that a person working for such a wage
may earn an annual income that is not less than 15 percent
higher than the Federal poverty threshold for a family of 4, as
determined by the Bureau of the Census;
(2) the minimum wage should be set at a level high enough
to allow 2 full-time minimum wage workers to earn an income
above the national housing wage; and
(3) Congress, any of the several States, the District of
Columbia, any territory or possession of the United States, any
Indian tribe, or any local or municipal government of a State
may establish a higher minimum wage requirement than that
established in this title.
SEC. 1602. MINIMUM WAGE.
Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206)
is amended--
(1) in subsection (a)(1)--
(A) by striking ``and'' at the end of subparagraph
(B);
(B) by inserting ``and'' at the end of subparagraph
(C); and
(C) by inserting at the end the following:
``(D) not less than the amount determined by the
Secretary under subsection (b), beginning September 1,
2014;''; and
(2) by redesignating subsection (b) as subsection (c) and
inserting after subsection (a) the following:
``(b)(1) Subject to paragraph (2), not later than June 1, 2014, and
once every 4 years thereafter, the Secretary shall determine the
minimum wage rate applicable under subsection (a)(1) based on the
formula described in paragraph (3). The Secretary shall publish such
wage rate in the Federal Register not later than October 1 of each
year.
``(2) If the minimum wage rate determined by the Secretary under
paragraph (1) would result in a lower minimum wage rate than the
minimum wage rate in effect at the time of such determination, the
Secretary shall not adjust, pursuant to this subsection, the minimum
wage rate so in effect.
``(3) The minimum wage rate determined by the Secretary under
paragraph (1) shall be the minimum hourly wage sufficient for a person
working for such wage for 40 hours per week, 52 weeks per year, to earn
an annual income in an amount that is 15 percent higher than the
Federal poverty threshold for a family of 4, with two children under
the age of 18, and living in any of the 48 contiguous States, as
published by the Bureau of the Census for the year in which the wage
rate is being so determined.''.
TITLE XVII--EMERGENCY UNEMPLOYMENT COMPENSATION EXTENSION
SEC. 1701. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.
(a) Extension.--Section 4007(a)(2) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is
amended by striking ``January 1, 2014'' and inserting ``January 1,
2015''.
(b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J), by inserting ``and'' at the end;
and
(3) by inserting after subparagraph (J) the following:
``(K) the amendments made by section 2(a) of the
Emergency Unemployment Compensation Extension Act;''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the American Taxpayer Relief
Act of 2012 (Public Law 112-240).
SEC. 1702. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.
(a) In General.--Section 2005 of the Assistance for Unemployed
Workers and Struggling Families Act, as contained in Public Law 111-5
(26 U.S.C. 3304 note), is amended--
(1) by striking ``December 31, 2013'' each place it appears
and inserting ``December 31, 2014''; and
(2) in subsection (c), by striking ``June 30, 2014'' and
inserting ``June 30, 2015''.
(b) Extension of Matching for States With No Waiting Week.--Section
5 of the Unemployment Compensation Extension Act of 2008 (Public Law
110-449; 26 U.S.C. 3304 note) is amended by striking ``June 30, 2014''
and inserting ``June 30, 2015''.
(c) Extension of Modification of Indicators Under the Extended
Benefit Program.--Section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in subsection (d), by striking ``December 31, 2013''
and inserting ``December 31, 2014''; and
(2) in subsection (f)(2), by striking ``December 31, 2013''
and inserting ``December 31, 2014''.
(d) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the American Taxpayer Relief
Act of 2012 (Public Law 112-240).
SEC. 1703. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND
REEMPLOYMENT AND ELIGIBILITY ASSESSMENT ACTIVITIES.
(a) In General.--Section 4004(c)(2)(A) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is
amended by striking ``through fiscal year 2014'' and inserting
``through fiscal year 2015''.
(b) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the American Taxpayer Relief
Act of 2012 (Public Law 112-240).
SEC. 1704. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD
UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is amended--
(1) by striking ``June 30, 2013'' and inserting ``June 30,
2014''; and
(2) by striking ``December 31, 2013'' and inserting
``December 31, 2014''.
(b) Clarification on Authority To Use Funds.--Funds appropriated
under either the first or second sentence of clause (iv) of section
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be
available to cover the cost of additional extended unemployment
benefits provided under such section 2(c)(2)(D) by reason of the
amendments made by subsection (a) as well as to cover the cost of such
benefits provided under such section 2(c)(2)(D), as in effect on the
day before the date of enactment of this Act.
(c) Funding for Administration.--Out of any funds in the Treasury
not otherwise appropriated, there are appropriated to the Railroad
Retirement Board $62,500 for administrative expenses associated with
the payment of additional extended unemployment benefits provided under
section 2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason
of the amendments made by subsection (a), to remain available until
expended.
SEC. 1705. FLEXIBILITY FOR UNEMPLOYMENT PROGRAM AGREEMENTS.
(a) Flexibility.--
(1) In general.--Subsection (g) of section 4001 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note) shall not apply with respect to a State that
has enacted a law before December 1, 2013, that, upon taking
effect, would violate such subsection.
(2) Effective date.--Paragraph (1) is effective with
respect to weeks of unemployment beginning on or after December
29, 2013.
(b) Permitting a Subsequent Agreement.--Nothing in such title IV
shall preclude a State whose agreement under such title was terminated
from entering into a subsequent agreement under such title on or after
the date of the enactment of this Act if the State, taking into account
the application of subsection (a), would otherwise meet the
requirements for an agreement under such title.
DIVISION E--ANTI-POVERTY TAX PROVISION
TITLE XVIII--CHILD TAX CREDIT PERMANENCY
SEC. 1801. MODIFICATIONS OF THE CHILD TAX CREDIT.
(a) Permanent Extension.--
(1) In general.--Clause (i) of section 24(d)(1)(B) of the
Internal Revenue Code of 1986 is amended by striking
``$10,000'' and inserting ``$3,000''.
(2) Conforming amendments.--Section 24(d) of such Code is
amended by striking paragraphs (3) and (4).
(b) Inflation Adjustment.--Section 24 of such Code is amended by
adding at the end the following new subsection:
``(g) Inflation Adjustment.--In the case of any taxable year
beginning in a calendar year after 2013, the $1,000 amount contained in
subsection (a) shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting `calendar year 2012' for
`calendar year 1992' in subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be rounded
to the nearest multiple of $50.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
TITLE XIX--EARNED INCOME TAX CREDIT
SEC. 1901. EXPANSION OF EARNED INCOME CREDIT.
(a) Credit Percentages for Individuals With No Qualifying
Children.--The item in the table in section 32(b)(1)(A) of the Internal
Revenue Code of 1986 under the column relating to the credit percentage
is amended by striking ``7.65'' and inserting ``15.3''.
(b) Phaseout Percentage for Individuals With No Qualifying
Children.--The item in the table in section 32(b)(1)(A) of the Internal
Revenue Code of 1986 under the column relating to the phaseout
percentage is amended by striking ``7.65'' and inserting ``15.3''.
(c) Phaseout Amount.--
(1) In general.--The item in the table in section
32(b)(2(A) of the Internal Revenue Code of 1986 under the
column relating to the phaseout amount is amended by striking
``$5,280'' and inserting ``$11,500''.
(2) Inflation adjustment.--
(A) In general.--Section 32(j) of the Internal
Revenue Code of 1986 is amended by redesignating
paragraph (2) as paragraph (3) and by inserting after
paragraph (1) the following new paragraph:
``(2) Exception.--In the case of the amount in subsection
(b)(2)(A) under the column relating to the phaseout amount for
taxable years beginning after 2014, paragraph (1)(B)(i) shall
be applied by substituting `calendar year 2013' for `calendar
year 1995' and paragraph (1) shall not apply to such amount for
taxable years beginning in 2013.''.
(B) Conforming amendments.--Section 32(j) of the
Internal Revenue Code of 1986 is amended--
(i) in paragraph (1)(B)(i) by inserting
``except as provided in paragraph (2)'' before
``in the case of'', and
(ii) in paragraph (2)(A) by inserting ``or
(2)'' after ``paragraph (1)''.
(d) Expansion of Age Range of Eligible Individuals.--Section
32(c)(1)(A)(ii)(II) of the Internal Revenue Code of 1986 is amended by
striking ``age 25 but not attained age 65'' and inserting ``age 21 but
not attained retirement age (as defined in section 216(l) of the Social
Security Act)''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
TITLE XX--CHILD CARE ACCESS AND REFUNDABILITY EXPANSION ACT
SEC. 2001. CREDIT FOR DEPENDENT CARE EXPENSES.
(a) Credit Made Refundable.--
(1) In general.--The Internal Revenue Code of 1986 is
amended by redesignating section 21 as section 36C and by
moving such section after section 36B.
(2) Credit not allowed to nonresident aliens.--Section
36C(a)(1) of the Internal Revenue Code of 1986, as redesignated
by this section, is amended by inserting ``(other than a
nonresident alien)'' after ``In the case of an individual''.
(3) Conforming amendments.--
(A) Section 23(f)(1) of such Code is amended by
striking ``section 21(e)'' and inserting ``section
36C(e)''.
(B) Section 35(g)(6) of such Code is amended by
striking ``section 21(e)'' and inserting ``section
36C(e)''.
(C) Section 36C(a)(1) of such Code, as redesignated
by this section, is amended by striking ``this
chapter'' and inserting ``this subtitle''.
(D) Section 129(a)(2)(C) of such Code is amended by
striking ``section 21(e)'' and inserting ``section
36C(e)''.
(E) Section 129(b)(2) of such Code is amended by
striking ``section 21(d)(2)'' and inserting ``section
36C(d)(2)''.
(F) Section 129(e)(1) of such Code is amended by
striking ``section 21(b)(2)'' and inserting ``section
36C(b)(2)''.
(G) Section 213(e) of such Code is amended by
striking ``section 21'' and inserting ``section 36C''.
(H) Section 6211(b)(4)(A) of such Code is amended
by inserting ``36C,'' after ``36B,''.
(I) Section 6213(g)(2)(H) of such Code is amended
by striking ``section 21'' and inserting ``section
36C''.
(J) Section 6213(g)(2)(L) of such Code is amended
by striking ``section 21, 24, 32, or 6428'' and
inserting ``section 24, 32, 36C, or 6428''.
(K) Paragraph (2) of section 1324(b) of title 31,
United States Code, is amended by inserting ``36C,''
after ``36B,''.
(L) The table of sections for subpart A of part IV
of subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by striking the item relating
to section 21.
(M) The table of sections for subpart C of part IV
of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 36B the
following new item:
``Sec. 36C. Expenses for household and dependent care services
necessary for gainful employment.''.
(b) Inflation Adjustment of Income Thresholds for Credit
Phasedown.--Section 36C(e) of the Internal Revenue Code of 1986, as
redesignated by this section, is amended by adding at the end the
following new paragraph:
``(11) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2013, the $2,000
amount and the $15,000 amount in subsection (a)(2)
shall each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2012'
for `calendar year 1992' in subparagraph (B)
thereof.
``(B) Rounding.--Any increase determined under
subparagraph (A) shall be rounded to the nearest
multiple of--
``(i) in the case of the $2,000 amount,
$50, and
``(ii) in the case of the $15,000 amount,
$100.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
DIVISION F--MISCELLANEOUS
TITLE XXI--POVERTY IMPACT TRIGGER
SEC. 2101. CERTAIN POVERTY IMPACT LEGISLATION SUBJECT TO POINT OF
ORDER.
Rule XXI of the Rules of the House of Representatives is amended by
adding at the end the following new clause:
``Certain legislation reported by committees
``12. It shall not be in order to consider a bill or joint
resolution of a public nature authorizing an appropriation of
$10,000,000 or more, unless--
``(a) the committee report accompanying the bill or joint
resolution includes a CBO Poverty Index Division impact
statement; or
``(b) the chair of the committee reporting the bill or
joint resolution submits such statement to be published in the
Congressional Record before consideration of the bill or joint
resolution.''.
SEC. 2102. CONGRESSIONAL BUDGET OFFICE POVERTY IMPACT DIVISION.
(a) In General.--Section 202 of the Congressional Budget Act of
1974 (2 U.S.C. 602) is amended by adding at the end the following new
subsection:
``(h) CBO Poverty Impact Division.--
``(1) Creation.--There is established within the Office the
CBO Poverty Impact Division (hereinafter in this subsection
referred to as the `Division').
``(2) Duties and functions.--
``(A) Preparation and submission of impact
statement.--When a chair of a committee of the House of
Representatives submits a written request to the
Division to prepare and submit to the committee a CBO
Poverty Index Division impact statement, the Division
shall prepare and submit such statement to the
committee not later than 30 days after such request.
``(B) Content of impact statement.--A CBO Poverty
Index Division impact statement shall include the
following:
``(i) A projected ratio equal to the amount
of appropriations authorized in the bill or
joint resolution that will benefit individuals
and families below the poverty threshold over
the total amount of appropriations authorized
by the bill or joint resolution.
``(ii) A projection of the number of
individual and family incomes--
``(I) that may decrease below the
poverty threshold because of the bill
or joint resolution; and
``(II) that may increase above the
poverty threshold because of the bill
or joint resolution.
``(iii) A projection as to how the
legislation improves access to basic human
services, including health care, housing, and
education.
``(C) Poverty threshold defined.--In this
subsection, the term `poverty threshold' means an
income level below 200 percent of the poverty line (as
defined in section 673(2) of the Community Services
Block Grant Act).''.
SEC. 2103. EXERCISE OF RULEMAKING POWERS.
Section 2101 of this title is enacted by the House of
Representatives--
(1) as an exercise of the rulemaking power of the House of
Representatives and as such it shall be considered as part of
the rules of the House of Representatives and such rules shall
supersede other rules only to the extent that they are
inconsistent therewith; and
(2) with the full recognition of the constitutional right
of the House of Representatives to change such rules at any
time, in the same manner, and to the same extent as in the case
of any other rule of the House of Representatives.
SEC. 2104. EFFECTIVE DATE.
The amendments made by this title shall apply to any bill or joint
resolution reported by a committee of the House of Representatives
after the 90-day period beginning on the date of enactment of this Act.
TITLE XXII--HALF IN TEN ACT TO CREATE A NATIONAL STRATEGY TO REDUCE
POVERTY
SEC. 2201. FINDINGS.
Congress finds the following:
(1) The persistence of poverty, and especially
intergenerational poverty, in America can be seen as a deep,
structural problem that implicates our value system and our
educational and economic institutions.
(2) Poverty may be defined as the lack of basic necessities
of life such as food, shelter, clothing, health care,
education, economic security, and economic opportunity.
(3) Policy initiatives and many safety net programs
addressing poverty have not kept pace with the needs of
millions of Americans.
(4) The lack of an equitable distribution of housing
choices across the country leads to isolation and concentrated
poverty.
(5) The number of Americans living in poverty rose by over
2.6 million from 2009 to 2010 (U.S. Census Bureau, September
2011).
(6) There were 46.2 million Americans living in poverty in
2010, consisting of 15.1 percent of the American people (U.S.
Census Bureau, September 2011).
(7) Poverty has a disproportionate impact on minority
communities in America with 27.4 percent of African-Americans,
26.6 percent of Hispanics, 12.1 percent of Asian Americans, and
9.9 percent of Whites living in poverty in the United States in
2010 (U.S. Census Bureau, September 2011).
(8) In 2010 a family of 4 was considered poor under the
U.S. Census Bureau's official measure if the family's income
was below $22,314.
(9) The economic consequences of poverty in the United
States are estimated to be at least $500 billion per year
(Center for American Progress, 2007).
(10) Children who grow up in poverty experience higher
crime rates, decreased productivity, and higher health costs
over their lives (Center for American Progress, 2007).
(11) 3,500,000 seniors lived in poverty in 2010 (U.S.
Census Bureau, 2011).
(12) Young Americans, ages 18-24, experience a higher
poverty rate than the national average (U.S. Census Bureau,
2011).
(13) 16,400,000 children lived in poverty in 2010--more
than one in every five American children (U.S. Census Bureau,
2011).
(14) Almost 35 percent of African-American children and
over 30 percent of Hispanic children lived in poverty in 2009
(U.S. Census Bureau, 2011).
(15) The 46,180,000 of Americans in poverty in 2010 was the
largest number yet recorded in the 52 years for which poverty
estimates are available (U.S. Census Bureau, 2011).
(16) Individuals and families in poverty are more socially
vulnerable to natural disasters, extreme weather and impacts of
climate change and have greater difficulty preparing for,
responding to and recovering from such events (Oxfam America,
2009).
(17) Children who live in families who fall into poverty
for even short periods of time are at greater risk of a
lifetime of lower earnings, lower educational attainment, and
increased reliance on public services and increased rates of
incarceration (First Focus, 2008).
(18) It is estimated that the additional 3 million children
who were forced into poverty due to the recession of 2008,
resulted in $35 billion in economic losses annually, and will
cause at least $1.7 trillion in economic losses to the United
States during their lifetimes (First Focus, 2008).
(19) Reducing poverty, especially child poverty, not only
reduces costs for Federal, State, and local social services and
benefits programs, but also increases tax revenue at all levels
of government (Children's Defense Fund, 2009).
(20) The House of Representatives, on January 22, 2008, has
resolved that it is the sense of Congress that the United
States should set a national goal of cutting poverty in half
over the next 10 years.
SEC. 2202. DEFINITIONS.
In this title:
(1) Federal agency.--The term ``Federal agency'' means any
executive department, Government corporation, Government-
controlled corporation, or other establishment in the executive
branch of the Government (including the Executive Office of the
President), or any independent regulatory agency.
(2) Poverty.--The term ``poverty'' means an income level
and living standard associated with and based on the official
poverty measure as established and updated by the U.S. Census
Bureau which establishes a threshold of minimum income
necessary to achieve a standard of living free from deprivation
of basic needs.
(3) Extreme poverty.--The term ``extreme poverty'' means
having an income level or living standard at a level of extreme
deprivation based on living with income below 50 percent of the
Federal poverty line as established by the U.S. Census.
(4) Near poverty.--The term ``near poverty'' means having a
level of household income below 200 percent of the Federal
poverty line.
(5) Child poverty.--The term ``child poverty'' means
poverty which impacts those persons under 18 years of age.
(6) Deprivation.--The term ``deprivation'' means lacking
some or all basic human needs.
(7) Decent living standard.--The term ``decent living
standard'' means the amount of annual income that would allow
an individual to live beyond deprivation at a safe and decent,
but modest, standard of living.
(8) Alternative poverty measures.--The term ``alternative
poverty measures'' means measures and indicators, other than
the traditional income based measure of poverty, which can
provide a more detailed picture of the low-income and poverty
stricken populations, such as the number of people who were
kept above poverty by Government supports, the number of people
who are poor due to medical expenses, child care, and work
expenses, the rates of food insecurity, the number of people
who are asset poor (with less than three months of income
saved), the number of disconnected youth, teen birth rates,
participation rates in Federal anti-poverty programs for all
eligible populations, and the number of people who are
unbanked.
(9) Regional costs of living.--The term ``regional costs of
living'' means a measure of the differing costs of maintaining
a given living standard in varying regional, geographic, urban
or rural regions.
(10) Economic insecurity.--The term ``economic insecurity''
means the inability of individuals and households to cope with
routine adverse or costly life events and the lack of means to
maintain a decent standard of living and to recover from the
costly consequences of those events.
(11) Economic stability.--The term ``economic stability''
means individuals and households have access to the means and
support systems necessary to effectively cope with adverse or
costly life events and have the ability to effectively recover
from the consequences of those events while maintaining their
standard of living or maintaining a decent standard of living.
(12) Digital divide.--The term ``digital divide'' means the
gap between individuals, households, businesses and geographic
areas at different socio-economic levels with regard to both
their access information and communications technologies and
including the imbalance both in physical access to technology
and the resources, education and skills needed to effectively
use computer technology and the Internet for a wide variety of
activities.
(13) Outcomes.--The term ``outcomes'' means change in the
economic status, economic instability or economic security of
an individual, household or other population which is
attributable to a planned intervention, benefit, or service or
series of interventions, benefits, and services, regardless of
whether such an intervention was intended to change such
economic status.
(14) Disparate impact.--The term ``disparate impact''
refers to the historic and ongoing impacts of the pattern and
practice of discrimination in employment, education, housing,
banking and nearly every other aspect of American life in the
economy, society or culture that have an adverse impact on
minorities, women, or other protected groups, regardless of
whether such practices were motivated by discriminatory intent.
SEC. 2203. ESTABLISHMENT OF THE FEDERAL INTERAGENCY WORKING GROUP ON
REDUCING POVERTY.
(a) Establishment of Federal Interagency Working Group on Reducing
Poverty.--There is established within the Department of Health and
Human Services, a Federal Interagency Working Group on Reducing
Poverty, which shall be chaired by the Secretary of Health and Human
Services, and whose members shall be selected by their respective
agency heads from the senior ranks of their agencies, which shall--
(1) develop, within 180 days of enactment, a National
Strategy to reduce the number of persons living in poverty in
America in half within 10 years of the release of the 2012
Census report on Income, Poverty and Health Insurance Coverage
in the United States: 2011, that includes goals and objectives
relating to--
(A) reducing in half the number of Americans living
in poverty as reported by the 2012 Census report on
Income, Poverty and Health Insurance Coverage in the
United States: 2011;
(B) eliminating child poverty in America;
(C) eliminating extreme poverty in America;
(D) improving the effectiveness and outcomes of
poverty-related programs by improving our understanding
of the root causes of poverty, the social, economic,
and the cultural contributors to persistent
intergenerational poverty;
(E) improving the measure of poverty to include
more indicators and measures that can meaningfully
account for other aspects relating to the measure of
poverty, such as regional differences in costs of
living, the impact of rising income inequality, the
impact of the persistent ``digital divide'', expanding
the understanding of poverty by distinguishing a
standard that measures a level of freedom from
deprivation versus a standard that measures a standard
of economic adequacy provided by a living wage and
access to a decent living standard, and the impact of
poverty on other measures of economic stability and
economic outcomes, such as educational attainment,
rates of incarceration, lifetime earnings, access to
health care, health care outcomes, access to housing,
and including other measures as necessary to improve
our understanding of why poverty persists in America;
(F) eliminating the disparate rates of poverty
based on race, ethnicity, gender, age, or sexual
orientation and identity, especially among children in
those households so impacted;
(G) measuring effectiveness of poverty related
programs on the basis of long-term outcomes, including
the long-term savings and value of preventive practice
and policy, and employing fact-based measures of
programs to make improvements;
(H) improving the accessibility of benefit and
social services programs, reducing the complexity and
difficulty of enrollment, and improving the rates of
enrollment in need based programs for all eligible
recipients to maximize the impact of benefits and
social services programs on reducing the impacts of
poverty and improving economic outcomes;
(I) making more uniform eligibility requirements to
improve the coordination of service delivery, reduce
gaps in eligibility, and improve outcomes of programs
addressing poverty in the Federal Government;
(J) reducing the negative impacts of asset limits
for eligibility which impact Federal, State and local
poverty programs on the effectiveness of programs where
limited eligibility creates gaps in necessary service
and benefit delivery, and restricts access to benefits
as individuals and families attempt to transition off
of assistance programs and which can prevent needy
beneficiaries from improving long-term outcomes and
achieving long-term economic independence from need-
based programs;
(K) identifying Federal programs, including those
related to disaster relief, hazard mitigation, extreme
weather and climate change, and necessary reforms to
better target resources towards disproportionately
impacted socially vulnerable, low-income and
disadvantaged communities may provide greater socio-
economic benefits;
(L) improving the ability of community-based
organizations to participate in the development,
oversight and implementation of Federal poverty-related
programs;
(M) improving access to good jobs with adequate
wages and benefits by individuals living in poverty,
low-income households, and the unemployed;
(N) expanding and stabilizing poor and low-income
persons connection to work and access to critical job
training and/or skills upgrade training that will lead
to re-entry in the workforce;
(O) developing a comprehensive strategy to connect
low-income young people and to re-connect currently
disconnected youth to education, work, and their
community; and
(P) shifting the focus of poverty and means-tested
programs across the Federal Government beyond the
relief of deprivation and instead setting goals,
measures, and outcomes more focused on measuring the
success of programs in supporting and improving how
capable individuals and families can access educational
and economic opportunities to successfully transition
away from accessing public assistance and benefits and
achieving long-term economic stability which will
reduce long-term costs in domestic social needs
programs, reduce long-term health care costs due to the
improved health of formerly poverty stricken
households, increase the number of taxpaying
individuals which will increase revenue, and lower the
enrollment and costs in need based benefits and
services programs, thus improving the economy and
reducing long-term deficits for Federal, State, and
local governments;
(2) oversee, coordinate, and integrate all policies and
activities of the Federal Government, in coordination and
consultation with the Domestic Policy Council and the National
Economic Council, across all agencies relating to reducing the
number of individuals, families, and children living below the
Federal poverty line, in extreme poverty or near poverty and
increasing the number of households able to achieve long-term
economic stability with assets sufficient to maintain a decent
living standard without relying on public supports--
(A) economic, commercial, and programmatic policies
that can effect or relieve the effects of poverty
through job creation, and economic development targeted
to low-income, minority, rural, urban and other
populations who suffer disparate rates of poverty,
among Federal agencies; and
(B) services and benefits including emergency
programs, discretionary economic programs, and other
policies and activities necessary to ensure that the
Federal Government is able to mount effective responses
to economic downturns and increases in the rates of
poverty;
(3) ensure that all relevant Federal agencies comply with
appropriate guidelines, policies, and directives from the
Federal Interagency Working Group on Reducing Poverty and the
Department of Health and Human Services and other Federal
agencies with responsibilities relating to poverty reduction or
improving economic stability and independence;
(4) ensure that Federal agencies, State governments and
relevant congressional committees have access to, receive, and
appropriately disseminate best practices in the administration
of programs, have adequate resources to maximize the public
awareness of programs, increase the reach of those programs,
especially into historically disenfranchised communities,
maximize enrollment for all eligible Americans, share relevant
data, and issue relevant guidance in consultation with non-
government organizations and policy experts in the field and
State and local government officials who administer or direct
policy for anti-poverty programs in increasing and maximizing
the enrollment into and administration of programs and services
designed to alleviate poverty;
(5) enact best practices for improved data collection,
relevant to--
(A) reducing poverty;
(B) reducing the racial, ethnic, age, gender, and
sexual orientation or sexual identity based disparities
in the rates of poverty;
(C) adequately measuring the effectiveness,
efficiency and impact of programs on the outcomes for
individuals, families and communities who receive
benefits and services;
(D) streamlining enrollment and eligibility for
programs;
(E) improving long-term outcomes for individuals
who are enrolled in service and benefit programs;
(F) reducing reliance on public programs;
(G) improving connections to work;
(H) improving economic stability;
(I) improving savings and investment, access to
capital, increasing rates of entrepreneurship;
(J) improving our understanding of the impact of
extreme weather and natural disasters on economically
vulnerable communities and improving those communities'
resilience to and recovery from extreme weather and
natural disasters;
(K) improving access to living wage employment; and
(L) improving access to employment-based benefits;
and
(6) study the feasibility of and test different
interagency, State and local, public/private models of
cooperative service and benefit delivery by creating necessary
exemptions, waivers and funding sources to allow improved
cooperation and innovation in the development of programs,
practices, policies and procedures that advance the goal of
reducing poverty and increasing economic opportunity.
(b) Director of National Poverty Policy.--There shall be a Staff
Director of National Poverty Policy, who shall be the head of the
Federal Interagency Working Group on Reducing Poverty.
SEC. 2204. APPOINTMENT AND RESPONSIBILITIES OF THE DIRECTOR.
(a) Appointment.--
(1) In general.--The Staff Director shall be appointed by
the Secretary of Housing and Urban Development.
(2) Qualifications.--The Secretary shall appoint the Staff
Director from among individuals who have demonstrated ability
and knowledge in social policy, improving outcome based
management, issues of equity and equal opportunity and access
to services and economic opportunity.
(b) Responsibilities.--The Staff Director shall--
(1) advise the Secretary and all relevant cabinet
secretaries, and agency officials regarding the establishment
of policies, goals, objectives, and priorities for reducing
poverty in America in half in ten years, ending child poverty,
ending extreme poverty and eliminating racial, ethnic, gender,
and sexual identity and orientation based disparities in the
rates of poverty;
(2) advise the Secretary, when directed by the Secretary,
advise relevant cabinet secretaries, heads of independent
Federal agencies and other entities within the Executive Office
of the President regarding mechanisms to improve the
effectiveness, coordination, impact, and outcomes of social
services, benefits, and other poverty reduction and economic
opportunity programs, in collaboration with experts in the
field, non-governmental organizations, and other governments;
(3) work with Federal agencies to oversee, coordinate, and
integrate the implementation of the National Plan or Strategy,
including consultation with independent non-governmental policy
experts and service provider groups engaged in serving low-
income persons, children and households, State and local
government officials who administer or direct policy for anti-
poverty programs, and with as many groups that directly
represent low-income people, such as public housing tenants'
associations, or other similar groups; and
(4) resolve any disputes that arise between Federal
agencies relating to the National Plan to reduce poverty in
half in ten years or other matters within the responsibility of
the Office.
SEC. 2205. CONSULTATION.
(a) In General.--The Director may consult and obtain
recommendations from, as needed, such Presidential and other advisory
entities such as consultation with independent non-governmental policy
experts and service provider groups engaged in serving low-income
persons, children, and households; State and local government officials
who administer or direct policy for anti-poverty programs, and groups
made up of low-income people, such as public housing tenants'
associations, or other similar groups as the Director determines will
assist in carrying out the mission of the Office, including, but not
limited to--
(1) the Administration for Children and Families (ACF);
(2) the Administration on Aging (AoA);
(3) the Department of Agriculture (USDA);
(4) the Bankruptcy Courts;
(5) the Bureau of Consumer Financial Protection;
(6) the Bureau of Economic Analysis (BEA);
(7) the Bureau of Indian Affairs (BIA);
(8) the Bureau of the Census;
(9) the Center for Nutrition Policy and Promotion;
(10) the Centers for Medicare & Medicaid Services (formerly
the Health Care Financing Administration);
(11) the Commission on Civil Rights;
(12) the Office of Community Planning and Development;
(13) the Consumer Financial Protection Bureau;
(14) the Coordinating Council on Juvenile Justice and
Delinquency Prevention;
(15) the Corporation for National and Community Service;
(16) the Council of Economic Advisers;
(17) the Department of Agriculture (USDA);
(18) the Department of Commerce (DOC);
(19) the Department of Defense (DOD);
(20) the Department of Education (ED);
(21) the Department of Health and Human Services (HHS);
(22) the Department of Housing and Urban Development (HUD);
(23) the Department of Justice (DOJ);
(24) the Department of Labor (DOL);
(25) the Department of the Treasury;
(26) the Department of Transportation (DOT);
(27) the Department of Veterans Affairs (VA);
(28) the Disability Employment Policy Office;
(29) the Domestic Policy Council;
(30) the Drug Enforcement Administration (DEA);
(31) the Economic Development Administration;
(32) the Economic Research Service;
(33) the English Language Acquisition Office;
(34) the Equal Employment Opportunity Commission (EEOC);
(35) the Fair Housing and Equal Opportunity;
(36) the Federal Bureau of Prisons;
(37) the Federal Housing Finance Board;
(38) the Federal Labor Relations Authority;
(39) the Federal Trade Commission (FTC);
(40) the Food and Nutrition Service;
(41) the Indian Health Service;
(42) the Interagency Council on Homelessness;
(43) the Internal Revenue Service (IRS);
(44) the Legal Services Corporation;
(45) the National AIDS Policy Office;
(46) the National Credit Union Administration;
(47) the National Economic Council;
(48) the National Institutes of Health (NIH);
(49) the National Labor Relations Board;
(50) the Occupational Safety & Health Administration
(OSHA);
(51) the Office of Management and Budget (OMB);
(52) the Office of Refugee Resettlement;
(53) the Office of Policy Development and Research (Housing
and Urban Development Department);
(54) the Small Business Administration (SBA);
(55) the Social Security Administration (SSA);
(56) the Substance Abuse and Mental Health Services
Administration;
(57) the Veterans' Employment and Training Service; and
(58) the Women's Bureau (Labor Department).
(b) National Strategy.--In developing and updating the National
Strategy the Executive Director shall consult with the Domestic Policy
Council, the National Economic Council, and, as appropriate, hold
regional public hearings around the country to collect information and
feedback from the public on their efforts and experience for the
development and updating of the National Strategy and make this
information available to the public.
SEC. 2206. REPORTS TO CONGRESS AND THE PUBLIC.
(a) In General.--The Chair of the Federal Interagency Working Group
on Reducing Poverty shall submit an annual report to the appropriate
congressional committees describing the activities, ongoing projects,
and plans of the Federal Government designed to meet the goals and
objectives of the National Strategy on Poverty. The report shall
include an accounting of the savings to the Government from any
increased efficiencies in the delivery of services, any savings from
reducing the numbers of Americans living in poverty and reductions in
the demand for need-based services and benefits for which persons
living in and near poverty are eligible, as well as an accounting of
any increase in revenue collections due to the numbers of persons who
become gainfully employed and pay taxes into the Treasury instead of
drawing benefits and services from it.
(b) National Academy of Sciences Workshop.--Within 90 days after
funds are made available to carry out this title, the Secretary of
Health and Human Services shall contract with the National Academy of
Sciences (hereinafter in this subsection referred to as the ``NAS'') to
initiate a workshop series to provide necessary background information
to enable the Working Group on Reducing Poverty to develop and finalize
its plan.
(1) The NAS shall convene a steering committee to organize,
plan, and conduct a public workshop on what is known about the
economic and social costs of poverty, including, but not
limited to the following:
(A) Macroeconomic costs (effects on productivity
and economic output).
(B) Health costs (effects on health expenditures
and health status).
(C) Crime and other social costs.
(D) Direct Federal budget effects (e.g., outlays
for income support and other poverty reduction
programs).
(E) Natural disaster related risks and costs.
(F) The workshop shall also consider poverty
metrics (e.g., income poverty, food insecurity, and
other measures of deprivation), and their role in
assessing the effects of poverty and the performance of
anti-poverty programs.
The NAS shall commission experts to prepare papers that
summarize and critique the relevant literature estimating
monetary and non-monetary economic and social impacts of
poverty. A workshop summary shall be produced that, along with
the papers, shall be available electronically on the NAS
website. This workshop shall be convened within 6 months of
receipt of a contract, the papers posted immediately, and the
summary released by the end of month.
(2) The NAS steering committee shall organize, plan, and
conduct a second public workshop on what is known about the
economic and social costs and benefits of a variety of programs
and strategies to reduce and prevent poverty. It shall take
account of such issues as the following:
(A) Short-term versus long-term effects, including
budget implications.
(B) Effects for different population groups, such
as children, the elderly, immigrants, long-term single-
parent families, displaced older workers, young people
with large loans, people in areas of concentrated
poverty and other social ills (e.g., Indian
reservations, some inner city areas, some rural areas).
(C) Effects by depth of poverty and near-poverty
(e.g., income to poverty ratios of less than 50
percent, less than 100 percent, less than 200 percent).
This second workshop shall be convened within 9 months of
receipt of a contract, the papers posted immediately, and a
summary released by the end of month 12.
(c) Report.--The relevant sections of the report shall be posted on
each agency's website on the plans and impacts specific to their
agency.
(d) Public Report.--A version of each report submitted under this
section shall be made available to the public.
(e) Legislative Language.--The Working Group on Reducing Poverty
shall submit, as necessary, legislative language, including specific
legislative recommendations to the Congress of the United States
towards achieving the national goals.
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