744 
a fiscal year shall be increased by the lesser 
of— 
‘‘(i) the amount (if any) of the super-
achiever credit applicable to the State; or 
‘‘(ii) the number of percentage points 
(if any) by which the minimum participa-
tion rate required by subsection (a) for the 
fiscal year exceeds 50 percent. 
‘‘(B) SUPERACHIEVER
STATE.—For pur-
poses of subparagraph (A), a State is a super-
achiever State if the State caseload for fiscal 
year 2001 has declined by at least 60 percent 
from the State caseload for fiscal year 1995. 
‘‘(C) AMOUNT
OF
CREDIT.—The super-
achiever credit applicable to a State is the num-
ber of percentage points (if any) by which the 
decline referred to in subparagraph (B) exceeds 
60 percent. 
‘‘(D) DEFINITIONS.—In this paragraph: 
‘‘(i) STATE
CASELOAD
FOR
FISCAL 
YEAR 2001.—The term ‘State caseload for 
fiscal year 2001’ means the average 
monthly number of families that received 
assistance during fiscal year 2001 under 
the State program funded under this part.
745 
‘‘(ii) STATE
CASELOAD
FOR
FISCAL 
YEAR 1995.—The term ‘State caseload for 
fiscal year 1995’ means the average 
monthly number of families that received 
aid under the State plan approved under 
part A (as in effect on September 30, 
1995) during fiscal year 1995.’’. 
(d) COUNTABLE HOURS.—Section 407 (42 U.S.C. 
607) is amended by striking subsections (c) and (d) and 
inserting the following: 
‘‘(c) COUNTABLE HOURS.— 
‘‘(1) DEFINITION.—In subsection (b)(2), the 
term ‘countable hours’ means, with respect to a fam-
ily for a month, the total number of hours in the 
month in which any member of the family who is a 
work-eligible individual is engaged in a direct work 
activity or other activities specified by the State (ex-
cluding an activity that does not address a purpose 
specified in section 401(a)), subject to the other pro-
visions of this subsection. 
‘‘(2) LIMITATIONS.—Subject to such regula-
tions as the Secretary may prescribe: 
‘‘(A) MINIMUM WEEKLY AVERAGE OF 24 
HOURS
OF
DIRECT
WORK
ACTIVITIES
RE-
QUIRED.—If the work-eligible individuals in a
746 
family are engaged in a direct work activity for 
an average total of fewer than 24 hours per 
week in a month, then the number of countable 
hours with respect to the family for the month 
shall be zero. 
‘‘(B) MAXIMUM WEEKLY AVERAGE OF 16 
HOURS OF OTHER ACTIVITIES.—An average of 
not more than 16 hours per week of activities 
specified by the State (subject to the exclusion 
described in paragraph (1)) may be considered 
countable hours in a month with respect to a 
family. 
‘‘(3) SPECIAL RULES.—For purposes of para-
graph (1): 
‘‘(A) PARTICIPATION
IN
QUALIFIED
AC-
TIVITIES.— 
‘‘(i) IN GENERAL.—If, with the ap-
proval of the State, the work-eligible indi-
viduals in a family are engaged in 1 or 
more qualified activities for an average 
total of at least 24 hours per week in a 
month, then all such engagement in the 
month shall be considered engagement in a 
direct work activity, subject to clause (iii).
747 
‘‘(ii) 
QUALIFIED
ACTIVITY
DE-
FINED.—The 
term 
‘qualified 
activity’ 
means an activity specified by the State 
(subject to the exclusion described in para-
graph (1)) that meets such standards and 
criteria as the State may specify, includ-
ing— 
‘‘(I) substance abuse counseling 
or treatment; 
‘‘(II) 
rehabilitation 
treatment 
and services; 
‘‘(III) work-related education or 
training directed at enabling the fam-
ily member to work; 
‘‘(IV) job search or job readiness 
assistance; and 
‘‘(V) any other activity that ad-
dresses a purpose specified in section 
401(a). 
‘‘(iii) LIMITATION.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), clause (i) 
shall not apply to a family for more 
than 3 months in any period of 24 
consecutive months.
748 
‘‘(II) SPECIAL RULE APPLICABLE 
TO
EDUCATION
AND
TRAINING.—A 
State may, on a case-by-case basis, 
apply clause (i) to a work-eligible indi-
vidual so that participation by the in-
dividual in education or training, if 
needed to permit the individual to 
complete a certificate program or 
other work-related education or train-
ing directed at enabling the individual 
to fill a known job need in a local 
area, may be considered countable 
hours with respect to the family of the 
individual for not more than 4 months 
in any period of 24 consecutive 
months. 
‘‘(B) SCHOOL
ATTENDANCE
BY
TEEN 
HEAD
OF
HOUSEHOLD.—The 
work-eligible 
members of a family shall be considered to be 
engaged in a direct work activity for an average 
of 40 hours per week in a month if the family 
includes an individual who is married, or is a 
single head of household, who has not attained 
20 years of age, and the individual—