BENEFITS FOR TWO-PARENT FAMILIES.

SEC. 401. BENEFITS FOR TWO-PARENT FAMILIES. (a) Mandatory Expansion of Coverage.— (1) Section 402(a) of the Social Security Act (as amended by section 201(a) of this Act) is amended— (A) by striking “and” after the semicolon at the end of paragraph (39); (B) by striking the period at the end of paragraph (40) and inserting in lieu thereof “; and”; and (C) by inserting immediately after paragraph (40) the following new paragraph: “(41) provide that aid to families with dependent children will be provided under the plan with respect to dependent children of unemployed parents in accordance with section 407.”. (2) (A) Section 402(a)(38)(B) of such Act is amended by striking “(if such section is applicable to the State)”. 102 STAT. 2394 (B) Section 407(b) of such Act is amended by striking “(b) The provisions” and all that follows through “(1) requires” and inserting in lieu thereof the following: “(b) In providing for the provision of aid to families with dependent children under the State’s plan approved under section 402, in the case of families that include dependent children within the meaning of subsection (a) of this section, as required by section 402(a)(41), the State’s plan— “(1) shall require”. (C) Section 407(b)(2) of such Act is amended by striking “provides—” and inserting in lieu thereof “shall provide—”. (b) State Flexibility in Structuring Two-Parent Family Program.— (1) Section 407(b) of such Act (as amended by subsection (a) of this section) is amended— (A) (i) by inserting “(1)” after “(b)”; (ii) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (iii) by redesignating subparagraphs (A), (B), and (C) of such paragraph (1) as clauses (i), (ii), and (iii), respectively; (iv) by redesignating subparagraphs (A), (B), (C), and (D) of such paragraph (2) as clauses (i), (ii), (iii), and (iv), respectively; and (v) by redesignating clauses (i) and (ii) of subparagraph (C) of both such paragraphs (1) and (2) as subclauses (I) and (II), respectively; (B) in paragraph (1)(A) (as so redesignated by subparagraph (A) of this paragraph, and as amended by subsection (a)(2)(A) of this section before such redesignation), by inserting “subject to paragraph (2),” before “shall require”; and (C) by adding at the end the following new paragraph: “(2) (A) In carrying out the program under this section, a State may design its program to reflect the individual needs of the State and to emphasize education, training, and employment services for unemployed parents and their spouses who are eligible for aid to families with dependent children by reason of this section, to the extent provided under this paragraph. “(B) (i) Subject to clauses (ii) and (iii), with respect to the requirement under section 402(a)(41), a State may, at its option, limit the number of months with respect to which a family receives aid to families with dependent children to the extent determined appropriate by the State for the operation of its program under this section. “(ii) (I) A State may not limit the number of months under clause (i) for which a family may receive aid to families with dependent children unless it provides in its plan assurances to the Secretary that it has a program (that meets such requirements as the Secretary may in regulation prescribe) for providing education, training, and employment services (including any activity authorized under section 402(a)(19) or under part F) in order to assist parents of children described in subsection (a) in preparing for and obtaining employment. “(II) In exercising the option under clause (i), a State plan may not provide for the denial of aid to families with dependent children to a family otherwise eligible for such aid for any month unless the family has received such aid (on the basis of the unemployment of the parent who is the principal earner) in at least 6 of the preceding 12 months. 102 STAT. 2395 “(iii) Each State which, on September 26, 1988, has a program in effect under this section shall continue to operate such program without a time limitation. “(C) With respect to the participation in the program under section 402(a)(19) and part F of a family eligible for aid to families with dependent children by reason of this section, a State may, at its option— “(i) except as otherwise provided in such section and such part, require that any parent participating in such program engage in program activities for up to 40 hours per week; and “(ii) provide for the payment of aid to families with dependent children at regular intervals of no greater than one month but after the performance of assigned program activities.”. (2) Section 402(a)(19)(B)(i)(II) of such Act (as added by the amendment made by section 201(a) of this Act) is amended by inserting “(and individuals who would be recipients of such aid if the State had not exercised the option under section 407(b)(2)(B)(i))” after “children”. (3) (A) Section 407(b)(1)(B) of such Act (as so redesignated by paragraph (1)(A) of this subsection) is amended by striking “paragraph (1)(A)” each place it appears and inserting in lieu thereof “subparagraph (A)(i)”. (B) Section 407(c) of such Act is amended— (i) by striking “subparagraph (A) of subsection (b)(1)” and inserting in lieu thereof “subsection (b)(1)(A)(i)”; (ii) by striking “subparagraph (B) of such subsection” and inserting in lieu thereof “subsection (b)(1)(A)(ii)”; and (iii) by striking “subparagraph (A) of subsection (b)(2)” and inserting in lieu thereof “subsection (b)(1)(B)(i)”. (C) Section 407(d)(3) of such Act is amended by striking “section 407(b)(1)(C)” and inserting in lieu thereof “subsection (b)(1)(A)(iii)”. (c) Participation in Training and Education Programs as a Quarter of Work.— (1) Section 407(d)(1) of such Act is amended— (A) by inserting “(A)” after “means a calendar quarter”; and (B) by inserting before the semicolon at the end the following: “, or (B) at the option of the State, a calendar quarter in which such individual attended, full-time, an elementary school, a secondary school, or a vocational or technical training course (approved by the Secretary) that is designed to prepare the individual for gainful employment, or in which such individual participated in an education or training program established under the Job Training Partnership Act”. (2) Section 407(d) of such Act is amended by adding at the end the following new sentence: “Notwithstanding section 402(a)(1), a State that chooses to exercise the option provided under paragraph (1)(B) may provide that the definition of calendar quarter under such option apply in one or more political subdivisions of the State.”. (3) Section 407(b)(1)(A)(iii)(I) of such Act (as so redesignated by subsection (b)(1)(A) of this section) is amended by inserting “, no more than 4 of which may be quarters of work defined in subsection (d)(1)(B),” after “(d)(1)”. (4) (A) Section 407(b)(2)(B)(ii) of such Act (as added by the amendment made by subsection (b)(1)(C) of this section) is amended by adding at the end the following new subclause: “(III) Any family that is otherwise eligible for aid to families with dependent children that does not receive such aid in any month102 STAT. 2396 solely by reason of the State exercising the option under clause (i) shall be deemed, for purposes of determining the period under paragraph (1)(A)(iii)(I), to be receiving such aid in such month.”. (B) Section 407(d)(1) of such Act (as amended by paragraph (1) of this subsection) is amended by striking “a community work experience” and all that follows through the semicolon and inserting in lieu thereof “the program under section 402(a)(19) and part F;”. (d) Expansion of Medicaid Coverage for Two-Parent Families.— (1) Section 1902(a)(10)(A)(i) of such Act is amended— (A) by striking “or” at the end of subclause (III), (B) by adding “or” at the end of subclause (IV), and (C) by adding at the end the following new subclause: “(V) who are qualified family members as defined in section 1905(m)(1);”. (2) Section 1905 of such Act is amended by inserting after subsection (1) the following new subsection: “(m) (1) Subject to paragraph (2), the term ‘qualified family member’ means an individual (other than a qualified pregnant woman or child, as defined in subsection (n)) who is a member of a family that would be receiving aid under the State plan under part A of title IV pursuant to section 407 if the State had not exercised the option under section 407(b)(2)(B)(i). “(2) No individual shall be a qualified family member for any period after September 30, 1998.”. (e) Evaluation and Report.— (1) The Secretary of Health and Human Services shall evaluate the time-limited and conventional State programs conducted under section 407 of the Social Security Act (as amended by this section), including the effects of the work requirement applicable to families receiving benefits under such section (2) The Secretary shall, not later than July 1, 1996, submit to the Congress an interim report containing the findings of such evaluation together with recommendations for any changes in such program, and shall, not later than July 1, 1998, submit to the Congress a final report containing such findings and recommendations. (f) Section 402(a) of such Act (as amended by sections 201(a) and 401(a) of this Act) is amended— (1) by striking “and” at the end of paragraph (40); (2) by striking the period at the end of paragraph (41) and inserting “; and”; and (3) by inserting immediately after paragraph (41) the following new paragraph: “(42) provide that if, under section 407(b)(2)(B)(i), the State limits the number of months for which a family may receive aid to families with dependent children, the State snail provide medical assistance to all members of the family under the State’s plan approved under title XIX, without time limitation. (g) Effective Date.— (1) Except as provided in paragraph (2), and in section 1905(m)(2) of the Social Security Act (as added by subsection (d)(2) of this section), the amendments made by this section shall become effective on October 1, 1990. (2) The amendments made by this section shall not become effective with respect to Puerto Rico, American Samoa, Guam, or the Virgin Islands, until October 1, 1992. (h) Termination.— Effective September 30, 1998, the amendments made by this section (other than by subsection (d)) are repealed, and the provisions of law so amended (as in effect immediately before102 STAT. 2397 the effective date of such amendments) shall apply as if such amendments had never been made.