article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Pathways to Self-Sufficiency Act of 2002''. SEC. 2. AUTHORITY TO ESTABLISH UNDERGRADUATE POST-SECONDARY OR VOCATIONAL EDUCATIONAL PROGRAM UNDER TANF. (a) State Option.--Section 404 of the Social Security Act (42 U.S.C. 604) is amended by adding at the end the following new subsection: ``(l) Authority To Establish Undergraduate Post-Secondary or Vocational Educational Program.-- ``(1) In general.--Subject to paragraph (2), a State to which a grant is made under section 403 may use the grant to establish a program under which an eligible participant (as defined in paragraph (3)) may be provided support services described in paragraph (5). ``(2) No federal funds for tuition.--A State may not use Federal funds provided under a grant made under section 403 to pay tuition for an eligible participant. ``(3) Definition of eligible participant.-- ``(A) In general.--In this subsection, the term `eligible participant' means an individual who receives assistance under the State program funded under this part and satisfies the following requirements: ``(i) The individual is enrolled in a postsecondary 2- or 4-year degree program or in a vocational educational training program. ``(ii) During the first 24 months that the individual participates in the program, the individual engages in a combination of educational activities in connection with a course of study, training, study time, employment, or work experience for an average of not less than 24 hours per week. ``(iii) After the first 24 months of the individual's participation in the program, the individual-- ``(I) works not less than an average of 15 hours per week (in addition to school and study time); or ``(II) engages in a combination of educational activities in connection with a course of study, training, study time, employment, or work experience for an average of not less than 30 hours per week. ``(iv) During the period the individual participates in the program, the individual maintains satisfactory academic progress, as defined by the institution operating the undergraduate post-secondary or vocational educational program in which the individual is enrolled. ``(B) Determination of hours.--For purposes of determining hours per week under clause (ii) or (iii) of subparagraph (A), a State may not count study time of less than 1 hour for every hour of class time or more than 2 hours for every hour of class time. ``(4) Required time periods for completion of degree or vocational educational training program.-- ``(A) In general.--Subject to subparagraph (B), an individual participating in a program established under this subsection shall be required to complete the requirements of a degree or vocational educational training program within the normal time frame for full time students seeking the particular degree or completing the vocational educational training program. ``(B) Exception.--For good cause, the State may allow an individual to complete their degree requirements or vocational educational training program within a period not to exceed 1\1/2\ times the normal time frame established under subparagraph (A) (unless further modification is required by the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), or section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794)) and may modify the requirements applicable to an individual participating in the program. For purposes of the preceding sentence, good cause includes the case of an individual with 1 or more significant barriers to normal participation, as determined by the State, such as the need to care for a family member with special needs. ``(5) Support services described.--For purposes of paragraph (1), the support services described in this paragraph include any or all of the following during the period the eligible participant is in the program established under this subsection: ``(A) Child care. ``(B) Transportation services. ``(C) Payment for books and supplies. ``(D) Other services provided under policies determined by the State to ensure coordination and lack of duplication with other programs available to provide support services.''. (b) State Option To Include Participants As Engaged in Work.-- (1) In general.--Section 407(c)(2) of the Social Security Act (42 U.S.C. 607(c)(2)) is amended by adding at the end the following: ``(E) State option to include participants as engaged in work.-- ``(i) In general.--Subject to clause (ii), in the case of a State that elects to establish an undergraduate post-secondary or vocational education program under section 404(l), the State may include, for purposes of determining monthly participation rates under paragraphs (1)(B)(i) and (2)(B) of subsection (b), all families that include an individual participating in the program during the month as being engaged in work for the month, so long as each such individual is in compliance with the requirements of that program. ``(ii) Limitation.--With respect to a month, the number of families counted as being engaged in work under clause (i) may not exceed the amount equal to 10 percent of the number of families receiving assistance under the State program funded under this part for the month.''. (2) Conforming amendments.-- (A) Section 407(c)(2)(D) of the Social Security Act (42 U.S.C. 607(c)(2)(D)) is amended-- (i) in the heading, by inserting ``certain'' after ``participation in''; and (ii) by inserting ``(determined without regard to individuals participating in a program referred to in subparagraph (E)(i))'' after ``training''. (B) Section 407(d)(8) of the Social Security Act (42 U.S.C. 607(d)(8)) is amended by inserting ``other than an individual participating in a program that meets the requirements of section 404(l)'' after ``individual''. (c) State Option To Credit Months of Participation For Purposes of 5-Year Assistance Limit.--Section 408(a)(7) of the Social Security Act (42 U.S.C. 608(a)(7)) is amended by adding at the end the following: ``(H) Credit for months participating in a pathways to self-sufficiency program.--In determining the number of months for which an adult has received assistance under a State program funded under this part, the State may disregard any month during which the adult is a participant in a program that meets the requirements of section 404(l).''. (d) Effective Date.--The amendments made by this section take effect on October 1, 2002.
summary: Pathways to Self-Sufficiency Act of 2002 - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to give States that receive a TANF grant the option to: (1) use the grant to establish a program, including an undergraduate post-secondary or vocational education program, under which an eligible participant may be provided certain support services although the State may not use Federal TANF grant funds to pay the participant's tuition; and (2) credit months of program participation for disregard in calculation of the five year TANF assistance limitation.