(3) by inserting after paragraph (49) the fol-
lowing:
‘‘(50) unless the State has enacted a law ex-
empting itself from the application of this para-
graph, provide that aid under the plan shall not be
payable with respect to a child born to—
‘‘(A) a recipient of aid under the plan; or
‘‘(B) an individual who received such aid
at any time during the 10-month period ending
with the birth of the child.’’.
SEC. 306. OPTION TO MODIFY CERTAIN AFDC INCOME DIS-
REGARD RULES.
Section 402(a)(8)(B) of the Social Security Act (42
U.S.C. 602(a)(8)(B)) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
and
(2) by adding at the end the following:
‘‘(iii) notwithstanding clauses (ii) and (iv)
of subparagraph (A) and clause (ii) of this sub-
paragraph, may disregard earned income of any
child or relative receiving aid to families with
dependent children, or of any other individual
(living in the same home as such relative and
child) whose needs as taken into account in
making the determination under paragraph (7),
in accordance with any combination of rules
which (as determined by the State in accord-
ance with regulations prescribed by the Sec-
retary) is at least as favorable to the recipient
of such aid as the combination of rules con-
tained in such clauses, but not more favorable
to the recipient than a rule providing for the
disregard of the first $200 of the total of such
earned income for such month plus 1⁄2 of the
remainder thereof; and’’.
SEC. 307. OPTION TO PROVIDE MARRIED COUPLE TRANSI-
TION BENEFIT.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)), as amended by sections
201(a)(1), 302, 303, 304, and 305 of this Act, is amend-
ed—
(1) by striking ‘‘and’’ at the end of paragraph
(49);
(2) by striking the period at the end of para-
graph (50) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (50) the fol-
lowing:
‘‘(51) at the option of the State, provide that—
‘‘(A) if a recipient of aid under the plan
marries an individual who is not a parent of a
child of the recipient and (but for this para-
graph) the resulting family would have become
ineligible for such aid by reason of the mar-
riage, then the family shall remain eligible for
aid under the plan, in an amount equal to 50
percent of the aid payable to the recipient im-
mediately before the marriage, for a period
(specified by the State) of not more than 12
months, but only for so long as the income of
the family is less than 150 percent of the in-
come official poverty line (as defined by the Of-
fice of Management and Budget, and revised
annually in accordance with section 673(2) of
the Omnibus Budget Reconciliation Act of
1981) applicable to a family of the size in-
volved; and
‘‘(B) if a recipient of aid under the plan
marries an individual who is not a parent of a
child of the recipient and the resulting family
would (in the absence of this subparagraph) be
eligible for such aid by reason of section 407,
then the State may provide aid to the family in
accordance with section 407 or subparagraph
(A) of this paragraph, but not both.’’.
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply only with respect to individuals who
first become recipients of aid under State plans approved
under part A of title IV of the Social Security Act on or
after October 1, 1995.
SEC. 308. OPTION TO DISREGARD INCOME AND RESOURCES
DESIGNATED FOR EDUCATION, TRAINING,
AND EMPLOYABILITY, OR RELATED TO SELF-
EMPLOYMENT.
(a) RESOURCE DISREGARDS.—Section 402(a)(7)(B)
of the Social Security Act (42 U.S.C. 602(a)(7)(B)) is
amended—
(1) by striking ‘‘or’’ before ‘‘(iv)’’; and
(2) by inserting ‘‘(v) at the option of the State,
in the case of a family receiving aid under the State
plan (and a family not receiving such aid but which
received such aid in at least 1 of the preceding 4
months or became ineligible for such aid during the
preceding 12 months because of excessive earnings),
any amount (determined by the State) not to exceed
$10,000 in a qualified asset account (as defined in
section 406(i)) of the family, or (vi) at the option of
the State, the first $10,000 of the net worth (assets
reduced by liabilities with respect thereto) of all
microenterprises (as defined in section 406(j)(1))
owned, in whole or in part, by such child, relative,
or other individual, for a period not to exceed 2
years’’ before ‘‘; and’’.
(b) DISREGARD OF INCOME FROM QUALIFIED ASSET
ACCOUNTS.—Section 402(a)(8)(A) of such Act (42 U.S.C.
602(a)(8)(A)) is amended—
(1) by striking ‘‘and’’ at the end of clause (vii);
and
(2) by inserting after clause (viii) the following
new clause:
‘‘(ix) at the option of the State, may
disregard any interest or income earned on
a qualified asset account (as defined in
section 406(i)), and any qualified distribu-
tion (as defined in section 406(i)(2)) from
a qualified asset account (as defined in
section 406(i)(1)); and’’.
(c) NONRECURRING LUMP SUM EXEMPT FROM
LUMP SUM RULE.—Section 402(a)(17) of such Act (42
U.S.C. 602(a)(17)) is amended by adding at the end the
following: ‘‘; and, at the option of the State, that this para-
graph shall not apply to earned or unearned income re-
ceived in a month on a nonrecurring basis to the extent
that such income is placed in a qualified asset account