WELFARE-TO-WORK GRANTS.

SEC. 5001. WELFARE-TO-WORK GRANTS. (a) Grants to States.— (1) In general.—Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end the following: “(5) Welfare-to-work grants.— “(A) Formula grants.— “(i) Entitlement.—A State shall be entitled to receive from the Secretary of Labor a grant for each fiscal year specified in subparagraph (I) of this paragraph for which the State is a welfare-to-work State, in an amount that does not exceed the lesser of— “(I) 2 times the total of the expenditures by the State (excluding qualified State expenditures 111 STAT. 578(as defined in section 409(a)(7)(B)(i)) and any expenditure described in subclause (I), (II), or (IV) of section 409(a)(7)(B)(iv)) during the fiscal year for activities described in subparagraph (C)(i) of this paragraph; or “(II) the allotment of the State under clause (iii) of this subparagraph for the fiscal year. “(ii) Welfare-to-work state.—A State shall be considered a welfare-to-work State for a fiscal year for purposes of this paragraph if the Secretary of Labor determines that the State meets the following requirements: “(I) The State has submitted to the Secretary of Labor and the Secretary of Health and Human Services (in the form of an addendum to the State plan submitted under section 402) a plan which— “(aa) describes how, consistent with this subparagraph, the State will use any funds provided under this subparagraph during the fiscal year; “(bb) specifies the formula to be used pursuant to clause (vi) to distribute funds in the State, and describes the process by which the formula was developed; “(cc) contains evidence that the plan was developed in consultation and coordination with appropriate entitites in sub-State areas; “(dd) contains assurances by the Governor of the State that the private industry council (and any alternate agency designated by the Governor under item (ee)) for a service delivery area in the State will coordinate the expenditure of any funds provided under this subparagraph for the benefit of the service delivery area with the expenditure of the funds provided to the State under section 403(a)(1); and “(ee) if the Governor of the State desires to have an agency other than a private industry council administer the funds provided under this subparagraph for the benefit of 1 or more service delivery areas in the State, contains an application to the Secretary of Labor for a waiver of clause (vii)(I) with respect to the area or areas in order to permit an alternate agency designated by the Governor to so administer the funds. “(II) The State has provided to the Secretary of Labor an estimate of the amount that the State intends to expend during the fiscal year (excluding expenditures described in section 409(a)(7)(B)(iv) (other than subclause (III) thereof)) pursuant to this paragraph. “(III) The State has agreed to negotiate in good faith with the Secretary of Health and Human Services with respect to the substance and funding of any evaluation under section 413(j), 111 STAT. 579and to cooperate with the conduct of any such evaluation. “(IV) The State is an eligible State for the fiscal year. “(V) The State certifies that qualified State expenditures (within the meaning of section 409(a)(7)) for the fiscal year will be not less than the applicable percentage of historic State expenditures (within the meaning of section 409(a)(7)) with respect to the fiscal year. “(iii) Allotments to welfare-to-work states.— “(I) In general.—Subject to this clause, the allotment of a welfare-to-work State for a fiscal year shall be the available amount for the fiscal year, multiplied by the State percentage for the fiscal year. “(II) Minimum allotment.—The allotment of a welfare-to-work State (other than Guam, the Virgin Islands, or American Samoa) for a fiscal year shall not be less than 0.25 percent of the available amount for the fiscal year. “(III) Pro rata reduction.—Subject to subclause (II), the Secretary of Labor shall make pro rata reductions in the allotments to States under this clause for a fiscal year as necessary to ensure that the total of the allotments does not exceed the available amount for the fiscal year. “(iv) Available amount.—As used in this subparagraph, the term ‘available amount’ means, for a fiscal year, the sum of— “(I) 75 percent of the sum of— “(aa) the amount specified in subparagraph (I) for the fiscal year, minus the total of the amounts reserved pursuant to subparagraphs (E), (F), (G), and (H) for the fiscal year; and “(bb) any amount reserved pursuant to subparagraph (F) for the immediately preceding fiscal year that has not been obligated; and “(II) any available amount for the immediately preceding fiscal year that has not been obligated by a State or sub-State entity. “(v) State percentage.—As used in clause (iii), the term ‘State percentage’ means, with respect to a fiscal year, ½ of the sum of— “(I) the percentage represented by the number of individuals in the State whose income is less than the poverty line divided by the number of such individuals in the United States; and “(II) the percentage represented by the number of adults who are recipients of assistance under the State program funded under this part divided by the number of adults in the United States who are recipients of assistance under any State program funded under this part.111 STAT. 580 “(vi) Procedure for distribution of funds within states.— “(I) Allocation formula.—A State to which a grant is made under this subparagraph shall devise a formula for allocating not less than 85 percent of the amount of the grant among the service delivery areas in the State, which— “(aa) determines the amount to be allocated for the benefit of a service delivery area in proportion to the number (if any) by which the population of the area with an income that is less than the poverty line exceeds 7.5 percent of the total population of the area, relative to such number for all such areas in the State with such an excess, and accords a weight of not less than 50 percent to this factor; “(bb) may determine the amount to be allocated for the benefit of such an area in proportion to the number of adults residing in the area who have been recipients of assistance under the State program funded under this part (whether in effect before or after the amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the State) for at least 30 months (whether or not consecutive) relative to the number of such adults residing in the State; and “(cc) may determine the amount to be allocated for the benefit of such an area in proportion to the number of unemployed individuals residing in the area relative to the number of such individuals residing in the State. “(II) Distribution of funds.— “(aa) In general.—If the amount allocated by the formula to a service delivery area is at least $100,000, the State shall distribute the amount to the entity administering the grant in the area. “(bb) Special rule.—If the amount allocated by the formula to a service delivery area is less than $100,000, the sum shall be available for distribution in the State under subclause (III) during the fiscal year. “(III) Projects to help long-term recipients of assistance enter unsubsidized jobs.—The Governor of a State to which a grant is made under this subparagraph may distribute not more than 15 percent of the grant funds (plus any amount required to be distributed under this subclause by reason of subclause (II)(bb)) to projects that appear likely to help long-term recipients of assistance under the State program funded under this part (whether in effect before or after the 111 STAT. 581amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the State) enter unsubsidized employment. “(vii) Administration.— “(I) Private industry councils.—The private industry council for a service delivery area in a State shall have sole authority, in coordination with the chief elected official (as described in section 103(c) of the Job Training Partnership Act) of the area, to expend the amounts distributed under clause (vi)(II)(aa) for the benefit of the service delivery area, in accordance with the assurances described in clause (ii)(I)(dd) provided by the Governor of the State. “(II) Enforcement of coordination of expenditures with other expenditures under this part.—Notwithstanding subclause (I) of this clause, on a determination by the Governor of a State that a private industry council (or an alternate agency described in clause (ii)(I)(dd)) has used funds provided under this subparagraph in a manner inconsistent with the assurances described in clause (ii)(I)(dd)— “(aa) the private industry council (or such alternate agency) shall remit the funds to the Governor; and “(bb) the Governor shall apply to the Secretary of Labor for a waiver of subclause (I) of this clause with respect to the service delivery area or areas involved in order to permit an alternate agency designated by the Governor to administer the binds in accordance with the assurances. “(III) Authority to permit use of alternate administering agency.—The Secretary of Labor shall approve an application submitted under clause (ii)(I)(ee) or subclause (II)(bb) of this clause to waive subclause (I) of this clause with respect to 1 or more service delivery areas if the Secretary determines that the alternate agency designated in the application would improve the effectiveness or efficiency of the administration of amounts distributed under clause (vi)(II)(aa) for the benefit of the area or areas. “(viii) Data to be used in determining the number of adult tanf recipients.—For purposes of this subparagraph, the number of adult recipients of assistance under a State program funded under this part for a fiscal year shall be determined using data for the most recent 12-month period for which such data is available before the beginning of the fiscal year. “(B) Competitive grants.— “(i) In general.—The Secretary of Labor shall award grants in accordance with this subparagraph, in fiscal years 1998 and 1999, for projects proposed by eligible applicants, based on the following:111 STAT. 582 “(I) The effectiveness of the proposal in— “(aa) expanding the base of knowledge about programs aimed at moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment. “(bb) moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment; and “(cc) moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment, even in labor markets that have a shortage of low-skill jobs. “(II) At the discretion of the Secretary of Labor, any of the following: “(aa) The history of success of the applicant in moving individuals with multiple barriers into work. “(bb) Evidence of the applicant’s ability to leverage private, State, and local resources. “(cc) Use by the applicant of State and local resources beyond those required by subparagraph (A). “(dd) Plans of the applicant to coordinate with other organizations at the local and State level. “(ee) Use by the applicant of current or former recipients of assistance under a State program funded under this part as mentors, case managers, or service providers. “(ii) Eligible applicants.—As used in clause (i), the term ‘eligible applicant’ means a private industry council for a service delivery area in a State, a political subdivision of a State, or a private entity applying in conjunction with the private industry council for such a service delivery area or with such a political subdivision, that submits a proposal developed in consultation with the Governor of the State. “(iii) Determination of grant amount.—In determining the amount of a grant to be made under this subparagraph for a project proposed by an applicant, the Secretary of Labor shall provide the applicant with an amount sufficient to ensure that the project has a reasonable opportunity to be successful, taking into account the number of long-term recipients of assistance under a State program funded under this part, the level of unemployment, the job opportunities and job growth, the poverty rate, and such other factors as the Secretary of Labor deems appropriate, in the area to be served by the project. “(iv) Consideration of needs of rural areas and cities with large concentrations of poverty.—In making grants under this subparagraph, the Secretary of Labor shall consider the needs of rural 111 STAT. 583areas and cities with large concentrations of residents with an income that is less than the poverty line. “(v) Funding.—For grants under this subparagraph for each fiscal year specified in subparagraph (I), there shall be available to the Secretary of Labor an amount equal to the sum of— “(I) 25 percent of the sum of— “(aa) the amount specified in subparagraph (I) for the fiscal year, minus the total of the amounts reserved pursuant to subparagraphs (E), (F), (G), and (H) for the fiscal year; and “(bb) any amount reserved pursuant to subparagraph (F) for the immediately preceding fiscal year that has not been obligated; and “(II) any amount available for grants under this subparagraph for the immediately preceding fiscal year that has not been obligated. “(C) Limitations on use of funds.— “(i) Allowable activities.—An entity to which funds are provided under this paragraph shall use the funds to move individuals into and keep individuals in lasting unsubsidized employment by means of any of the following: “(I) The conduct and administration of community service or work experience programs. “(II) Job creation through public or private sector employment wage subsidies. “(III) On-the-job training. “(IV) Contracts with public or private providers of readiness, placement, and post-employment services. “(V) Job vouchers for placement, readiness, and postemployment services. “(VI) Job retention or support services if such services are not otherwise available. Contracts or vouchers for job placement services supported by such funds must require that at least ½ of the payment occur after an eligible individual placed into the workforce has been in the workforce for 6 months. “(ii) Required beneficiaries.—An entity that operates a project with funds provided under this paragraph shall expend at least 70 percent of all funds provided to the project for the benefit of recipients of assistance under the program funded under this part of the State in which the entity is located, or for the benefit of noncustodial parents of minors whose custodial parent is such a recipient, who meet the requirements of each of the following subclauses: “(I) At least 2 of the following apply to the recipient: “(aa) The individual has not completed secondary school or obtained a certificate of general equivalency, and has low skills in reading or mathematics.111 STAT. 584 “(bb) The individual requires substance abuse treatment for employment. “(cc) The individual has a poor work history. “(II) The individual— “(aa) has received assistance under the State program funded under this part (whether in effect before or after the amendments made by section 103 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first apply to the State) for at least 30 months (whether or not consecutive); or “(bb) within 12 months, will become ineligible for assistance under the State program funded under this part by reason of a durational limit on such assistance, without regard to any exemption provided pursuant to section 408(a)(7)(C) that may apply to the individual. “(iii) Targeting of individuals with characteristics associated with long-term welfare dependence.—An entity that operates a project with funds provided under this paragraph may expend not more than 30 percent of all funds provided to the project for programs that provide assistance in a form described in clause (i)— “(I) to recipients of assistance under the program funded under this part of the State in which the entity is located who have characteristics associated with long-term welfare dependence (such as school dropout, teen pregnancy, or poor work history), including, at the option of the State, by providing assistance in such form as a condition of receiving assistance under the State program funded under this part; or “(II) to individuals— “(aa) who are noncustodial parents of minors whose custodial parent is such a recipient; and “(bb) who have such characteristics. To the extent that the entity does not expend such funds in accordance with the preceding sentence, the entity shall expend such funds in accordance with clause (ii). “(iv) Authority to provide work-related services to individuals who have reached the 5 year limit.—An entity that operates a project with funds provided under this paragraph may use the funds to provide assistance in a form described in clause (i) of this subparagraph to, or for the benefit of, individuals who (but for section 408(a)(7)) would be eligible for assistance under the program funded under this part of the State in which the entity is located. “(v) Relationship to other provisions of this part.—111 STAT. 585 “(I) Rules governing use of funds.—The rules of section 404, other than subsections (b), (f), and (h) of section 404, shall not apply to a grant made under this paragraph. “(II) Rules governing payments to states.—The Secretary of Labor shall carry out the functions otherwise assigned by section 405 to the Secretary of Health and Human Services with respect to the grants payable under this paragraph. “(III) Administration.—Section 416 shall not apply to the programs under this paragraph. “(vi) Prohibition against use of grant funds for any other fund matching requirement.—An entity to which funds are provided under this paragraph shall not use any part of the funds, nor any part of State expenditures made to match the funds, to fulfill any obligation of any State, political subdivision, or private industry council to contribute funds under section 403(b) or 418 or any other provision of this Act or other Federal law. “(vii) Deadline for expenditure.—An entity to which funds are provided under this paragraph shall remit to the Secretary of Labor any part of the funds that are not expended within 3 years after the date the funds are so provided. “(viii) Regulations.—Within 90 days after the date of the enactment of this paragraph, the Secretary of Labor, after consultation with the Secretary of Health and Human Services and the Secretary of Housing and Urban Development, shall prescribe such regulations as may be necessary to implement this paragraph. “(D) Definitions.— “(i) Individuals with income less than the poverty line.—For purposes of this paragraph, the number of individuals with an income that is less than the poverty line shall be determined for a fiscal year— “(I) based on the methodology used by the Bureau of the Census to produce and publish intercensal poverty data for States and counties (or, in the case of Puerto Rico, the Virgin Islands, Guam, and American Samoa, other poverty data selected by the Secretary of Labor); and “(II) using data for the most recent year for which such data is available before the beginning of the fiscal year. “(ii) Private industry council.—As used in this paragraph, the term ‘private industry council’ means, with respect to a service delivery area, the private industry council (or successor entity) established for the service delivery area pursuant to the Job Training Partnership Act. “(iii) Service delivery area.—As used in this paragraph, the term ‘service delivery area’ shall have the meaning given such term (or the successor to such 111 STAT. 586term) for purposes of the Job Training Partnership Act. “(E) Set-aside for successful performance bonus.— “(i) In general.—The Secretary of Labor shall make a grant in accordance with this subparagraph to each successful performance State in fiscal year 2000. “(ii) Amount of grant.—The Secretary of Labor shall determine the amount of the grant payable under this subparagraph to a successful performance State, which shall be based on the score assigned to the State under clause (iv)(I)(aa) for such prior period as the Secretary of Labor deems appropriate. “(iii) Formula for measuring state performance.—Not later than 1 year after the date of the enactment of this paragraph, the Secretary of Labor, in consultation with the Secretary of Health and Human Services, the National Governors’ Association, and the American Public Welfare Association, shall develop a formula for measuring— “(I) the success of States in placing individuals in private sector employment or in any kind of employment, through programs operated with funds provided under subparagraph (A); “(II) the duration of such placements; “(III) any increase in the earnings of such individuals; and “(IV) such other factors as the Secretary of Labor deems appropriate concerning the activities of the States with respect to such individuals. The formula may take into account general economic conditions on a State-by-State basis. “(iv) Scoring of state performance; setting of performance thresholds.— “(I) In general.—The Secretary of Labor shall— “(aa) use the formula developed under clause (iii) to assign a score to each State that was a welfare-to-work State for fiscal years 1998 and 1999; and “(bb) prescribe a performance threshold in such a manner so as to ensure that the total amount of grants to be made under this paragraph equals $100,000,000. “(II) Availability of welfare-to-work data submitted to the secretary of hhs.—The Secretary of Health and Human Services shall provide the Secretary of Labor with the data reported by States under this part with respect to programs operated with funds provided under subparagraph (A). “(v) Successful performance state defined.—As used in this subparagraph, the term ‘successful performance State’ means a State whose score assigned pursuant to clause (iv)(I)((aa) equals or exceeds the 111 STAT. 587performance threshold prescribed under clause (iv)(I)(bb). “(vi) Set-aside.—$100,000,000 of the amount specified in subparagraph (I) for fiscal year 1999 shall be reserved for grants under this subparagraph. “(F) Funding for indian tribes.—1 percent of the amount specified in subparagraph (I) for fiscal year 1998 and of the amount so specified for fiscal year 1999 shall be reserved for grants to Indian tribes under section 412(a)(3). “(G) Funding for evaluations of welfare-to-work programs.—0.6 percent of the amount specified in subparagraph (I) for fiscal year 1998 and of the amount so specified for fiscal year 1999 shall be reserved for use by the Secretary to carry out section 413(j). “(H) Funding for evaluation of abstinence education programs.— “(i) In general.—0.2 percent of the amount specified in subparagraph (I) for fiscal year 1998 and of the amount so specified for fiscal year 1999 shall be reserved for use by the Secretary to evaluate programs under section 510, directly or through grants, contracts, or interagency agreements. “(ii) Authority to use funds for evaluations of welfare-to-work programs.—Any such amount not required for such evaluations shall be available for use by the Secretary to carry out section 413(j). “(iii) Deadline for outlays.—Outlays from funds used pursuant to clause (i) for evaluation of programs under section 510 shall not be made after fiscal year 2001. “(I) Appropriations.— “(i) In general.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $1,500,000,000 for each of fiscal years 1998 and 1999 for grants under this paragraph. “(ii) Availability.—The amounts made available pursuant to clause (i) shall remain available for such period as is necessary to make the grants provided for in this paragraph. “(J) Worker protections.— “(i) Nondisplacement in work activities.— “(I) General prohibition.—Subject to this clause, an adult in a family receiving assistance attributable to funds provided under this paragraph may fill a vacant employment position in order to engage in a work activity. “(II) Prohibition against violation of contracts.—A work activity engaged in under a program operated with funds provided under this paragraph shall not violate an existing contract for services or a collective bargaining agreement, and such a work activity that would violate a collective bargaining agreement shall not be undertaken without the written concurrence of the labor organization and employer concerned.111 STAT. 588 “(III) Other prohibitions.—An adult participant in a work activity engaged in under a program operated with funds provided under this paragraph shall not be employed or assigned— “(aa) when any other individual is on layoff from the same or any substantially equivalent job; “(bb) if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction in its workforce with the intention of filling the vacancy so created with the participant; or “(cc) if the employer has caused an involuntary reduction to less than full time in hours of any employee in the same or a substantially equivalent job. “(ii) Health and safety.—Health and safety standards established under Federal and State law otherwise applicable to working conditions of employees shall be equally applicable to working conditions of other participants engaged in a work activity under a program operated with funds provided under this paragraph. “(iii) Nondiscrimination.—In addition to the protections provided under the provisions of law specified in section 408(c), an individual may not be discriminated against by reason of gender with respect to participation in work activities engaged in under a program operated with funds provided under this paragraph. “(iv) Grievance procedure.— “(I) In general.—Each State to which a grant is made under this paragraph shall establish and maintain a procedure for grievances or complaints from employees alleging violations of clause (i) and participants in work activities alleging violations of clause (i), (ii), or (iii). “(II) Hearing.—The procedure shall include an opportunity for a hearing. “(III) Remedies.—The procedure shall include remedies for violation of clause (i), (ii), or (iii), which may continue during the pendency of the procedure, and which may include— “(aa) suspension or termination of payments from funds provided under this paragraph; “(bb) prohibition of placement of a participant with an employer that has violated clause (i), (ii), or (iii); “(cc) where applicable, reinstatement of an employee, payment of lost wages and benefits, and reestablishment of other relevant terms, conditions and privileges of employment; and “(dd) where appropriate, other equitable relief. “(IV) Appeals.—111 STAT. 589 “(aa) Filing.—Not later than 30 days after a grievant or complainant receives an adverse decision under the procedure established pursuant to subclause (I), the grievant or complainant may appeal the decision to a State agency designated by the State which shall be independent of the State or local agency that is administering the programs operated with funds provided under this paragraph and the State agency administering, or supervising the administration of, the State program funded under this part. “(bb) Final determination.—Not later than 120 days after the State agency designated under item (aa) receives a grievance or complaint made under the procedure established by a State pursuant to subclause (I), the State agency shall make a final determination on the appeal. “(v) Rule of interpretation.—This subparagraph shall not be construed to affect the authority of a State to provide or require workers’ compensation. “(vi) Nonpreemption of state law.—The provisions of this subparagraph shall not be construed to preempt any provision of State law that affords greater protections to employees or to other participants engaged in work activities under a program funded under this part than is afforded by such provisions of this subparagraph.”. (2) Conforming amendment.—Section 409(a)(7)(B)(iv) of such Act (42 U.S.C. 609(a)(7)(B)(iv)) is amended to read as follows: “(iv) Expenditures by the state.—The term ‘expenditures by the State’ does not include— “(I) any expenditure from amounts made available by the Federal Government; “(II) any State funds expended for the medicaid program under title XIX; “(III) any State funds which are used to match Federal funds provided under section 403(a)(5); or “(IV) any State funds which are expended as a condition of receiving Federal funds other than under this part. Notwithstanding subclause (IV) of the preceding sentence, such term includes expenditures by a State for child care in a fiscal year to the extent that the total amount of the expenditures does not exceed the amount of State expenditures in fiscal year 1994 or 1995 (whichever is the greater) that equal the non-Federal share for the programs described in section 418(a)(1)(A).”. (b) Grants to Outlying Areas.—Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by section 5512(a) of this Act, is amended by inserting “403(a)(5),” after “403(a)(4),”. (c) Grants to Indian Tribes.—Section 412(a) (42 U.S.C. 612(a)) is amended by adding at the end the following:111 STAT. 590 “(3) Welfare-to-work grants.— “(A) In general.—The Secretary of Labor shall award a grant in accordance with this paragraph to an Indian tribe for each fiscal year specified in section 403(a)(5)(I) for which the Indian tribe is a welfare-to-work tribe, in such amount as the Secretary of Labor deems appropriate, subject to subparagraph (B) of this paragraph. “(B) Welfare-to-work tribe.—An Indian tribe shall be considered a welfare-to-work tribe for a fiscal year for purposes of this paragraph if the Indian tribe meets the following requirements: “(i) The Indian tribe has submitted to the Secretary of Labor a plan which describes how, consistent with section 403(a)(5), the Indian tribe will use any funds provided under this paragraph during the fiscal year. If the Indian tribe has a tribal family assistance plan, the plan referred to in the preceding sentence shall be in the form of an addendum to the tribal family assistance plan. “(ii) The Indian tribe is operating a program under a tribal family assistance plan approved by the Secretary of Health and Human Services, a program described in paragraph (2)(C), or an employment program funded through other sources under which substantial services are provided to recipients of assistance under a program funded under this part. “(iii) The Indian tribe has provided the Secretary of Labor with an estimate of the amount that the Indian tribe intends to expend during the fiscal year (excluding tribal expenditures described in section 409(a)(7)(B)(iv) (other than subclause (III) thereof)) pursuant to this paragraph. “(iv) The Indian tribe has agreed to negotiate in good faith with the Secretary of Health and Human Services with respect to the substance and funding of any evaluation under section 413(j), and to cooperate with the conduct of any such evaluation. “(C) Limitations on use of funds.— “(i) In general.—Section 403(a)(5)(C) shall apply to funds provided to Indian tribes under this paragraph in the same manner in which such section applies to funds provided under section 403(a)(5). “(ii) Waiver authority.—The Secretary of Labor may waive or modify the application of a provision of section 403(a)(5)(C) (other than clause (vii) thereof) with respect to an Indian tribe to the extent necessary to enable the Indian tribe to operate a more efficient or effective program with the funds provided under this paragraph. “(iii) Regulations.—Within 90 days after the date of the enactment of this paragraph, the Secretary of Labor, after consultation with the Secretary of Health and Human Services and the Secretary of Housing and Urban Development, shall prescribe such regulations as may be necessary to implement this paragraph.”.111 STAT. 591 (d) Funds Received From Grants to be Disregarded in Applying Durational Limit on Assistance.—Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by adding at the end the following: “(G) Inapplicability To welfare-to-work grants and assistance.—For purposes of subparagraph (A) of this paragraph, a grant made under section 403(a)(5) shall not e considered a grant made under section 403, and noncash assistance from funds provided under section 403(a)(5) shall not be considered assistance.”. (e) Data Collection and Reporting.—Section 411(a) (42 U.S.C. 611(a)(1)(A)), as amended by section 5507 of this Act, is amended— (1) in paragraph (1)(A), by adding at the end the following: “(xviii) With respect to families participating in a program operated with funds provided under section 403(a)(5)— “(I) any activity described in section 403(a)(5)(C)(i) engaged in by a family member; “(II) the total amount expended during the month on the family member for each such activity; “(III) if the family member is engaged in subsidized employment or on-the-job training under the program, the wage paid to the family member and the amount of any wage subsidy provided to the family member from Federal or State funds; and “(IV) if the participation of a family member in the program was ended during a month due to the family member obtaining employment, the wage of the family member in the employment and whether the participation was ended due to the family member obtaining unsubsidized employment, obtaining subsidized employment, receiving an increased wage, engaging in a work training activity funded under a program funded other than under section 403(a)(5), or for other reasons.”; (2) in paragraph (2), by inserting “, with a separate statement of the percentage of such funds that are used to cover administrative costs or overhead incurred for programs operated with funds provided under section 403(a)(5)” before the period; (3) in paragraph (3), by inserting “, with a separate statement of the total amount expended by the State during the quarter on programs operated with funds provided under section 403(a)(5)” before the period; (4) in paragraph (4), by inserting “, with a separate statement of the number of such parents who participated in programs operated with funds provided under section 403(a)(5)” before the period; (5) in paragraph (6)— (A) by striking “and” at the end of subparagraph (A); (B) by striking the period at the end of subparagraph (B) and inserting “; and”; and (C) by adding at the end the following: “(C) with respect to families and individuals participating in a program operated with funds provided under section 403(a)(5)—111 STAT. 592 “(i) the total number of such families and individuals; and “(ii) the number of such families and individuals whose participation in such a program was terminated during a month.” and (6) in paragraph (7), by inserting “, and shall consult with the Secretary of Labor in defining the data elements with respect to programs operated with funds provided under section 403(a)(5)” before the period. (f) Evaluations.—Section 413 (42 U.S.C. 613) is amended by adding at the end the following: “(j) Evaluation of Welfare-to-Work Programs.— “(1) Evaluation.—The Secretary, in consultation with the Secretary of Labor and the Secretary of Housing and Urban Development— “(A) shall develop a plan to evaluate how grants made under sections 403(a)(5) and 412(a)(3) have been used; “(B) may evaluate the use of such grants by such grantees as the Secretary deems appropriate, in accordance with an agreement entered into with the grantees after good-faith negotiations; and “(C) is urged to include the following outcome measures in the plan developed under subparagraph (A): “(i) Placements in unsubsidized employment, and placements in unsubsidized employment that last for at least 6 months. “(ii) Placements in the private and public sectors. “(iii) Earnings of individuals who obtain employment. “(iv) Average expenditures per placement. “(2) Reports to the congress.— “(A) In general.—Subject to subparagraphs (B) and (C), the Secretary, in consultation with the Secretary of Labor and the Secretary of Housing and Urban Development, shall submit to the Congress reports on the projects funded under section 403(a)(5) and 412(a)(3) and on the evaluations of the projects. “(B) Interim report.—Not later than January 1, 1999, the Secretary shall submit an interim report on the matter described in subparagraph (A). “(C) Final report.—Not later than January 1, 2001, (or at a later date, if the Secretary informs the Committees of the Congress with jurisdiction over the subject matter of the report) the Secretary shall submit a final report on the matter described in subparagraph (A).”. (g) Penalties.— (1) Penalty for failure of state to maintain historic effort during year in which welfare-to-work grant is received.— (A) In general.—Section 409(a) (42 U.S.C. 609(a)) is amended by adding at the end the following: “(13) Penalty for failure of state to maintain historic effort during year in which welfare-to-work grant is received.—If a grant is made to a State under section 403(a)(5)(A) for a fiscal year and paragraph (7) of this subsection requires the grant payable to the State under section 403(a)(1) to be reduced for the immediately succeeding fiscal 111 STAT. 593year, then the Secretary shall reduce the grant payable to the State under section 403(a)(1) for such succeeding fiscal year by the amount of the grant made to the State under section 403(a)(5)(A) for the fiscal year.”. (B) Inapplicability of good cause exception.—Section 409(b)(2) of such Act (42 U.S.C. 609(b)(2)), as amended by section 5506(k) of this Act, is amended by striking “or (12)” and inserting “(12), or (13)”. (C) Inapplicability of corrective compliance plan.—Section 409(c)(4) of such Act (42 U.S.C. 609(c)(4)), as amended by section 5506(m) of this Act, is amended by striking “or (12)” and inserting “(12), or (13)”. (2) Penalty for misuse of competitive welfare-to-work funds.—Section 409(a)(1) of such Act (42 U.S.C. 609(a)(1)) is amended by adding at the end the following: “(C) Penalty for misuse of competitive welfare-to-work funds.—If the Secretary of Labor finds that an amount paid to an entity under section 403(a)(5)(B) has been used in violation of subparagraph (B) or (C) of section 403(a)(5), the entity shall remit to the Secretary of Labor an amount equal to the amount so used.”. (h) Clarification That Sanctions Against Recipients Under TANF Program are not Wage Reductions.— (1) In general.—Section 408 (42 U.S.C. 608) is amended— (A) by redesignating subsections (c) and (d) as subsections (a) and (e), respectively; and (B) by inserting after subsection (b) the following: “(c) Sanctions Against Recipients Not Considered Wage Reductions.—A penalty imposed by a State against the family of an individual by reason of the failure of the individual to comply with a requirement under the State program funded under this part shall not be construed to be a reduction in any wage paid to the individual.”. (2) Retroactivity.—The amendments made by paragraph (1) shall take effect as if included in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. (i) GAO Study of Effect of Family Violence on Need 42 for Public Assistance.— (1) Study.—The Comptroller General shall conduct a study of the effect of family violence on the use of public assistance programs, and in particular the extent to which family violence prolongs or increases the need for public assistance. (2) Report.—Within 1 year after the date of the enactment of this Act, the Comptroller General shall submit to the Committees on Ways and Means and Education and the Workforce of the House of Representatives and the Committee on Finance of the Senate a report that contains the findings of the study required by paragraph (1).