‘‘(i) IN
GENERAL.—The cost of the
arbitration proceeding conducted under
this subsection shall be divided evenly be-
tween the parties to the arbitration.
‘‘(ii) EXCEPTION.—If a grievant pre-
vails under the arbitration proceeding con-
ducted under this subsection, the party
found in violation of the requirements of
this part shall pay the total cost of such
proceeding and the attorney’s fees of the
grievant.
‘‘(D) ENFORCEMENT.—Suits to enforce ar-
bitration awards under this subsection may be
brought in any district court of the United
States having jurisdiction over the parties, with-
out regard to the amount in controversy and
without regard to the citizenship of the parties.
‘‘(4) REMEDIES.—Remedies for a grievance
filed under this subsection include—
‘‘(A) suspension of payments to employers;
‘‘(B) the termination of such payments;
‘‘(C) the prohibition of the placement of a
participant;
‘‘(D) reinstatement of a displaced employee
to the position held by such employee prior to
displacement;
‘‘(E) payment of lost wages and benefits of
the displaced employee;
‘‘(F) reestablishment of other relevant
terms, conditions, and privileges of the dis-
placed employee; and
‘‘(G) such equitable relief as is necessary
to correct a violation or to make a displaced
employee whole.
‘‘(c) WRITTEN NOTIFICATION OF LABOR ORGANIZA-
TIONS.—
‘‘(1) No position of employment with an em-
ployer may be established under title part unless the
local labor organization representing employees of
such employer who are engaged in the same or sub-
stantially similar work as that proposed to be car-
ried out under such position have been provided
written notification of the initial assignment of a
participant to such position not less than 30 days
prior to the commencement of such assignment. No
such notification shall be required with respect to
the subsequent assignment of participants to the
same position with the same employer.
‘‘(2) If a local organization provided notice of
an assignment pursuant to paragraph (1) objects to
an assignment of a participant pursuant to para-
graph (1) objects to an assignment of a participant
on the basis that such assignment would violate the
requirements relating to nondisplacement, wages,
benefits, or working conditions under this title, such
organization may, as an alternative to the grievance
procedures provided pursuant to subsection (b), file
a complaint pursuant to an expedited grievance pro-
cedure. Such expedited procedure shall be carried
out in accordance with the binding arbitration proce-
dures described in subsection (b)(3), except that—
‘‘(A) the request for arbitration shall be
filed within 30 days of receiving written notice,
‘‘(B) the arbitrator shall be jointly selected
by the parties not later than 10 days after the
request for arbitration, or, if the parties are un-
able to agree, appointed by the Federal Medi-
ation and Conciliation Service (or another en-
tity is agreed to by both parties) not later than
15 days after the request for arbitration, and
‘‘(C) the proceeding shall be conducted and
a decision issued not later than 30 days after
the request for arbitration.
‘‘(3) If a local organization files a complaint
pursuant to the expedited grievance procedure under
paragraph (2), a participant shall not be placed in
the position that is the subject of the complaint until
it is determined pursuant to the expedited procedure
that such placement would not be in violation of this
title.
‘‘(d) In assigning participants in the JOBS program
under this part to any program activity, the State agency
shall, in addition to the assurances required under sub-
section (a), assure that—
‘‘(1) the conditions of participation are reason-
able, taking into account in each case the experience
and proficiency of the participant and the child care
and other supportive services needs of the partici-
pant; and
‘‘(2) each assignment is based on available re-
sources, the participant’s circumstances, and local
employment opportunities.
‘‘(e) In assigning individuals registered with the
State’s WORK program under part G to a position of em-
ployment, the State agency shall, in addition to the assur-
ance required under subsection (a), assure that—
‘‘(1) no individual eligible to register for the
State’s WORK program, determined in accordance
with the provisions of part A and this part, shall be
excluded from such program;
‘‘(2) no family with a member eligible to par-
ticipate in the State’s program under part G will, by
reason of such assignment, and upon participating
the full number of hours provided by such assign-
ment, have income less than the amount such family
would have if it were receiving aid under the State’s
plan approved under part A and had no other in-
come (except if a sanction is applied under section
496(f));
‘‘(3) each family with a member participating in
the program under part G shall be considered to be
receiving aid to families with dependent children for
purpose of the State’s plan approved under title
XIX;
‘‘(4) where a labor organization represents a
substantial number of employees who are engaged in
similar work in the same area as that proposed to
be funded under part G, an opportunity shall be pro-
vided for such organization to submit comments with
respect to such proposal;
‘‘(5) participants employed under the WORK
program shall be compensated for such employment
in accordance with appropriate law, but in no event
at a rate less than the highest of—
‘‘(A) the Federal minimum wage rate spec-
ified in section 6(a)(1) of the Fair Labor
Standards Act of 1938;
‘‘(B) the rate specified by the appropriate
State or local minimum wage law; or
‘‘(C) the rate paid to employees of the
same employer performing the same type of
work and having similar employment tenure
with such employer; and
‘‘(6) except as otherwise provided under this
paragraph, participants employed under the WORK
program shall be provided benefits (including health
benefits, unless the State agency concludes that it
would impose an undue financial burden on either
the employer or the State), working conditions and
rights at the same level and to the same extent as
other employees of the same employer performing
the same type of work and having similar employ-
ment tenure with employer.
‘‘(f) Funds available to carry out the program under
this part, or under part G, may not be used to assist, pro-
mote, or deter union organizing.
‘‘(I) any month prior to the first month for
which this section is in effect in such State, or
in the case of a recipient of aid in such State
for the month preceding such month, the first
month in which such individual’s eligibility is
redetermined by such State;
‘‘(II) any month prior to the first month in
which payment of aid under this part was au-
thorized with respect to such individual;
‘‘(III) any month prior to the month in
which such individual attains age eighteen;
‘‘(IV) any month during which the individ-
ual worked 20 hours a week (or such greater
number, but not more than 30, as the State
plan under part F provides) or more;
‘‘(V) any month during which the total av-
erage number of hours worked per week by
both parents, in a family eligible by reason of
section 407 and in which section 402(a)(19)(D)
is applicable to neither parent, exceeds 30 hours
(or such greater number, but not more than 40,
as the State plan under part F provides); or
‘‘(VI) any month during which section
402(a)(19)(D) was applicable to such individ-
ual; and
‘‘(ii) there shall be included each month for
which aid would have been paid but for the applica-
bility to such individual of a sanction under section
402(a)(19)(G) or 402(a)(26).
For purposes of clauses (i)(IV) and (V), there shall not
be excluded any month in which the individual fails to ac-
cept an offer of additional hours of employment, or in
which such individual reduces the hours of employment
and thereby becomes eligible for additional amounts of aid
under this part.
‘‘(b) NOTICE TO INDIVIDUALS.—A State plan ap-
proved under this part shall provide that notice will be
given to each member of a family to whom the time limit
under subsection (a) applies, not less frequently than once
every six months, concerning the number of months of eli-
gibility remaining for each such member. The notice re-
quired by this subsection may be given together with the
payment of aid.
‘‘(c) EXTENSION OF LIMIT.—
‘‘(1) EXTENSION BY REASON OF FAILURE TO
PROVIDE SERVICES.—The State agency shall extend
the twenty-four-month limit referred to in subsection
(a) in the case of an individual who has been unable
to complete the education, training, or other activi-
ties intended to prepare such individual for employ-
ment by reason of the substantial failure of the
State agency to provide or arrange for the provision
of child care or any other service agreed upon in the
individual’s employability plan. A finding of failure
to provide services shall be based on the documenta-
tion made at the semi-annual assessment (required
by section 482(a)(5)), together with any reports or
information either the individual or the State agency
may have with respect to the period between the as-
sessment and the close of the twenty-fourth month.
The time limit shall be extended for so many months
as are necessary to allow the individual to complete
the activities agreed upon in the employability plan,
but in no event may such extension exceed an addi-
tional 24 months.
‘‘(2) EXTENSION
TO
COMPLETE
COURSE
OF
EDUCATION.—
‘‘(A) The State agency shall extend the
twenty-four-month limit referred to in sub-
section (a)—
‘‘(i) in the case of an individual re-
ceiving services under the Individuals with
Disabilities Education Act, for so long as
necessary to permit such individual to at-
tain a high school education (or the equiv-
alent) or, if sooner, until such individual
reaches age 22; and
‘‘(ii) in the case of an individual in a
structured learning program (as defined in
paragraph (4)), including a program under
the School-to-Work Opportunities Act of
1993, for so long as necessary to permit
such individual to complete the program
or, if sooner, until such individual reaches
age 22.
‘‘(B) Subject to subsection (e), the State
agency may extend the twenty-four-month limit
referred to in subsection (a)—
‘‘(i) for no more than 12 additional
months in order to allow an individual to
complete high school (or an equivalent pro-
gram of education), so long as the individ-
ual is making satisfactory progress toward
obtaining a high school diploma (or equiva-
lent);
‘‘(ii) for no more than 24 additional
months in order to allow an individual to
complete a post-secondary program so long
as the individual is enrolled in a work-
study program, or is employed at least 15
hours per week, and is making satisfactory
progress toward completing a degree-grant-
ing or certificate-granting education or
training 
program, 
or 
structured
microenterprise or self-employment pro-
gram likely to improve the individual’s eco-
nomic self-sufficiency; or
‘‘(iii) for such additional number of
months as it finds appropriate in any case,
determined on an individual basis, where
such extension is necessary to afford an in-
dividual with significant learning disabil-
ities or other substantial barriers to em-
ployment additional time to obtain the re-
medial education, job skills training, or
other services specified in the employability
plan needed to enable the individual to se-
cure employment.
‘‘(3) EXTENSION OF EMPLOYABILITY PLAN.—
The State agency shall extend, and if appropriate re-
vise, the employability plan of each individual with
respect to whom an extension is provided under this
subsection, and shall continue to furnish, through
the months of the extension, the supportive services
for which the extended plan provides.
‘‘(4) As used in this subsection, a ‘structured
learning program’ means one that begins at the sec-
ondary school level, continues into a post-secondary
program, and is designed to lead to a degree or rec-
ognized skills certificate.
‘‘(d) 
EXCEPTION
FOR
TRANSITION
TO
UNSUBSIDIZED EMPLOYMENT.—The State may, at its op-
tion, provide for continuing for one additional month the
payment of aid to an individual (and his or her dependent
child or children) under the State plan, notwithstanding
subsection (a), in any case where such continued payment
is necessary to assist the individual who is about to com-
mence a position of employment (other than as a partici-
pant in the program under part G) until receipt of the
first payment of wages. The State plan shall describe the
evidence of employment that the State will require in order
that payment may be continued under this subsection.
‘‘(e) LIMITATION ON AVERAGE MONTHLY NUMBER
OF EXTENSIONS.—If the average monthly number of indi-
viduals with respect to whom the State has extended the
twenty-four month limit by application of subsection (c)(1)
or (c)(2)(B) in any fiscal year exceeds 10 percent of the
average monthly number of individuals to whom this sec-
tion applies (and who are required to participate in the
program under part F) in the fiscal year involved, the pro-
visions of section 403(k)(6) (reducing Federal payments
under section 403(a)) shall apply, unless the Secretary,
upon a showing by the State of extraordinary or unfore-
seeable circumstances, allows the application of such sub-
sections to a greater number of individuals for a specified
period of time.
‘‘(f) 
ALTERNATIVE
TIME
LIMIT
DEMONSTRA-
TIONS.—Notwithstanding any other provision of this part,
the Secretary may permit not more than five States to
conduct demonstrations to determine what effects, if any,
application of time limits of other than twenty-four
months would have in promoting the objectives of the part.
The Secretary shall approve a demonstration only if the
proposed time limit is consistent with both the purpose
of making AFDC a transitional program and affording re-
cipients with support to enable them to prepare themselves
to obtain unsubsidized employment. Any State applying
a time limit other than that specified in subsection (a)
shall evaluate both the short and long term effects of such
time limit in enabling recipients to become self-sufficient
and shall report the results of such evaluation to the Sec-
retary.’’.
SEC. 105. RESPONSIBILITIES OF ASSISTANT SECRETARY
FOR FAMILY SUPPORT.
Section 419 of the Act, as redesignated by section
104 of this Act, is amended by striking out ‘‘and part F’’
and inserting in lieu thereof ‘‘part F, and part G’’.
TITLE II—WORK
SEC. 201. ESTABLISHMENT OF PROGRAM.
(a) Title IV of the Act is amended by adding at the
end thereof the following new part:
‘‘PART G—WORK
‘‘SEC. 491. PURPOSE AND DEFINITIONS.
‘‘(a) PURPOSE.—It is the purpose of this part to as-
sist States in developing and providing positions of em-
ployment for individuals who have received aid to families
with dependent children for 24 months, and participated
in the program under part F, but have not been able to
secure unsubsidized employment.
‘‘(b) DEFINITION.—As used in this part, a ‘WORK
position’ is a position of employment to which an individ-
ual is assigned under this part.
‘‘SEC. 492. ESTABLISHMENT AND OPERATION OF STATE
PROGRAMS.
‘‘(a) REQUIREMENT.—Each State shall establish and
operate a program to locate and create temporary posi-
tions of employment (in this part referred to as the
‘WORK program’) for individuals who have received aid
for 24 months, as provided in section 417. The WORK
program shall be in effect in each political subdivision of
the State not later than 2 years after the State’s program
under part F is in effect in such subdivision.
‘‘(b) STATE PLAN.—The State shall establish and op-
erate its WORK program under a plan approved by the
Secretary which describes how the State will implement
the plan, and indicates, through cross-references to the ap-
propriate provisions of this part and of parts A and F,
that the program will be operated in accordance with such
provisions of law. The State plan shall describe the strate-
gies and activities to be undertaken by the State to iden-
tify and develop WORK positions. Such strategies shall,
to the extent practicable, be designed to identify and de-
velop positions likely to result in the placement of partici-
pants in unsubsidized employment. The strategies and ac-
tivities may include—
‘‘(1) wage subsidies or other incentives to for-
profit, nonprofit, and public employers to employ
participants;
‘‘(2) performance-based contracts with public or
nonprofit or other private organizations to place par-
ticipants in unsubsidized employment;
‘‘(3) payments to nonprofit employers to assist
in supervising participants employed by such em-
ployers;
‘‘(4) assistance to participants in establishing
microenterprises and other self-employment efforts;
‘‘(5) payments to nonprofit employers and pub-
lic agencies to employ participants in temporary
projects designed to address community needs, such
as projects to enhance neighborhood infrastructure
and provide other community services; and
‘‘(6) payments to employers to employ partici-
pants as child care providers.
‘‘(c) COORDINATION WITH JOB OPPORTUNITIES AND
BASIC SKILLS TRAINING PROGRAM.—The State plan sub-
mitted to the Secretary to carry out the requirements of
this part shall, together with the State plan required to
carry out part F, constitute a single plan and shall, to
the maximum extent feasible, reflect an integrated strat-
egy to assist the individuals and families served under the
plan to achieve economic self-sufficiency.
‘‘(d) WORK ADVISORY BOARDS.—
‘‘(1) DESIGNATION.—The State plan shall des-
ignate, or describe a process for establishing or des-
ignating, a WORK advisory board for each local
area in the State to provide advice and guidance in
the administration of the program under this part.
The State shall ensure the participation of local
elected officials in the designation or establishment
of such boards.
‘‘(2) LOCAL AREA.—The local areas for which
WORK advisory boards shall be designated or estab-
lished pursuant to paragraph (1) may be—
‘‘(A) service delivery areas established
under section 101 of the Job Training Partner-
ship Act;
‘‘(B) the geographic boundaries of the
labor market areas in the State; or
‘‘(C) such other areas as the Governor de-
termines are appropriate to promote the effec-
tive administration of the WORK program.
‘‘(3) COMPOSITION.—Each WORK advisory
board designated or established pursuant to para-
graph (1) shall consist of—
‘‘(A) representatives of private sector em-
ployers,
‘‘(B) representatives of organized labor;
‘‘(C) representatives of not-for-profit orga-
nizations, including community-based organiza-
tions;
‘‘(D) representatives of local government,
such as local, elected officials and representa-
tives of economic development agencies, human
service agencies, and educational agencies; and
‘‘(E) such other community leaders as the
State determines are appropriate.
‘‘(4) FUNCTIONS.—Each WORK advisory board
shall provide comments to the State agency relating
to the State plan developed pursuant to subsection
(b) of this section. In addition, each WORK advisory
board shall provide advice and guidance to the agen-
cy administering the WORK program in the local
area relating to—
‘‘(A) the identification of potential WORK
positions;
‘‘(B) opportunities for placing WORK par-
ticipants in unsubsidized employment;
‘‘(C) methods for ensuring compliance with
the requirements of this part relating to
nondisplacement and working conditions;
‘‘(D) methods for carrying out the coordi-
nation requirements specified in subsection (e)
of this section; and
program under this part. Such arrangements may be
established with local government and service agen-
cies, public housing agencies, community-based orga-
nizations, business and labor organizations, vol-
untary organizations, and other appropriate entities.
‘‘SEC. 493. ELIGIBILITY FOR WORK PROGRAM; REGISTRA-
TION.
‘‘(a) ELIGIBILITY.—(1) IN GENERAL.—An individ-
ual—
‘‘(A) to whom section 417 applies, who has re-
ceived aid under the State plan approved under part
A for twenty-four months, and with respect to whom
no extension under section 417 has been provided,
‘‘(B) who is not an individual to whom section
402(a)(19)(D) applies, and
‘‘(C) who meets the eligibility criteria for aid to
families with dependent children (but for section
417) under the State’s plan approved under part A,
shall be permitted to register for participation in the
State’s WORK program and, upon registration and con-
tinuing compliance with the requirements applicable to in-
dividual’s awaiting assignment to a WORK position, be
eligible for such an assignment and, in accordance with
the succeeding provisions of this part, a payment of aid
to families with dependent children.
‘‘(2) SPECIAL RULES.—The State plan shall specify
whether one or both parents will be required to register
with and participate in the WORK program as a condition
of eligibility for an assignment for either parent under the
WORK program and a payment of aid to the family, in
the case of a family in which both parents are subject to
the limit in section 417.
‘‘(b) REGISTRATION.—The State plan shall establish
a simple procedure under which an individual who meets
the criteria of subsection (a) may register with and partici-
pate in the WORK program so that the individual will re-
ceive wages (if an appropriate assignment is available) or
aid, or (if applicable) both, in the month following the final
month of the time limit under section 417. The State plan
must describe the methods that will be employed to assure
the uninterrupted provision of aid for the family of an in-
dividual who has complied with all applicable requirements
and conditions of this part.
‘‘(c) WORK PROGRAM ASSESSMENT.—The State plan
shall provide for the prompt assessment of each individual
registering with the program, in order to determine an ap-
propriate assignment for such individual. The assessment
must include a review of the individual’s education, train-
ing, and employment experience while participating in the
program under part F, as well as any employment experi-
ence the individual may have had thereafter.
‘‘(d) LIMITATIONS ON ASSIGNMENTS.—
‘‘(1) HOURS OF WORK.—The State plan shall—
‘‘(A) ensure, to the extent practicable, that
participants’ wages earned from WORK posi-
tions provide on the average 75 percent of the
sum of wages together with aid paid to partici-
pants in the States WORK program;
‘‘(B) ensure no assignment will result in
an average number of hours of work over any
four-week period that is less than 15 hours per
week or greater than 35 hours per week; and
‘‘(C) provide that in making WORK as-
signments the State agency shall, to the maxi-
mum extent feasible, ensure that an assignment
to a WORK position will not interfere with any
hours of unsubsidized employment in which the
individual is already engaged at the time of the
assignment.
‘‘(2) LENGTH
OF
ASSIGNMENT.—An assign-
ment to a WORK position shall be for no longer
than 12 months and may not be reassigned to the
same position.
‘‘(e) PAYMENT OF AID.—The State agency admin-
istering the State’s plan approved under part A shall pay
for each month to each family with an individual reg-
istered with the WORK program the amount of aid that
would be payable to such family under such plan, except
that—
‘‘(1) wages earned by a family member from
employment in a WORK position shall not be con-
sidered in determining eligibility for continued par-
ticipation in the WORK program;
‘‘(2) in determining the amount of aid that is
payable, the State agency may determine whether to
disregard from the wages received from the WORK
position any amounts that may be disregarded under
section 402(a)(8)(A)(iv); and
‘‘(3) if a family member has been assigned to
and is employed in a WORK position, the amount
of the family’s aid will not be subject to increase by
reason of the individual’s failure to perform the full
number of hours per week for which the assignment
was made.
‘‘(f) TREATMENT UNDER OTHER LAWS.—
‘‘(1) Individuals participating in the WORK
program, and their families, whether or not any aid
is payable in addition to wages from a WORK posi-
tion, shall be considered to be receiving such aid for
purposes of the State’s plan for medical assistance
approved under title XIX.
‘‘(2) Wages paid for employment in a WORK
position shall be treated as if they were wages from
unsubsidized employment for the purpose of any
other Federal law unless it is expressly provided oth-
erwise in Federal law.
‘‘(g) PROGRAM PARTICIPANTS.—The Secretary may
by regulation prescribe criteria for determining when an
individual’s employment no longer constitutes participa-
tion in the WORK program.
‘‘SEC. 494. PROVISIONS GENERALLY APPLICABLE TO WORK
POSITIONS.
‘‘(a) IN GENERAL.—In addition to the applicable pro-
visions of section 484, the conditions described in this sec-
tion shall be applicable to WORK positions.
‘‘(b) PROHIBITION ON CONTRIBUTIONS FOR RETIRE-
MENT BENEFITS.—No funds available under this title
may be used for contributions to a retirement plan on be-
half of any participant.
‘‘(c) EXCLUSION FROM UNEMPLOYMENT COMPENSA-
TION.—The employment of participants under the WORK
program shall not be subject to the provisions of any Fed-
eral or State unemployment compensation law.
‘‘(d) SICK AND PERSONAL LEAVE.—The Secretary is
authorized to issue regulations establishing a minimum
number of hours that a participant may be on leave from
a WORK position due to illness or other reasons specified
by the Secretary without having the amount of wages pay-
able to such participant reduced to account for such leave.
In accordance with paragraph (1) of this subsection, the
regulations shall provide that if the employer provides, to
similarly situated regular employees, paid leave that is
equal to or exceeds the minimum prescribed by the Sec-
retary, the employer shall also provide such paid leave to
a participant. If the employer does not provide such paid
leave, the State agency shall implement such leave.
‘‘(e) RECORDS ON RETENTION OF PARTICIPANTS.—
The entity administering the WORK program shall main-
tain records on the extent to which each employer receiv-
ing assistance under this part retains participants in
unsubsidized employment subsequent to the completion of
WORK assignments.
‘‘SEC. 495. PRE-ASSIGNMENT ACTIVITIES AND SERVICES;
PRIORITY OF ASSIGNMENTS; POST-ASSIGN-
MENT ASSESSMENT
‘‘(a) ASSIGNMENTS.—The State plan approved under
this part shall provide for the establishment and mainte-
nance of a registry, updated regularly and frequently, of
all registered individuals who are awaiting assignment to
a WORK position. The State plan shall describe the cri-
teria that will generally be applied for determining the
order in which registered individuals will be assigned to
positions. Such criteria must provide for assigning, as
promptly as an appropriate position becomes available,
and individual to whom a sanction is being applied under
section 496(f)(2)(A) (in the case of a first failure to com-
ply with a requirement of the WORK program) or who
has ended a period of time during which a sanction has
been applied under section 496(f)(2) (B), (C), or (D) (in
the case of a second or subsequent such failure), and
thereafter preference will be given to individuals who have
not previously received a WORK assignment during a pe-
riod of consecutive months while registered for the WORK
program.
‘‘(b) JOB SEARCH; OTHER WORK PREPARATORY
ACTIVITIES.—
‘‘(1)(A) JOB SEARCH.—The State plan under
this part shall describe any requirements the State
applies to individuals registered for and awaiting as-
signment to a WORK position, including the extent
to which the individual must participate in individual
or group job search (not to exceed 35 hours per
week) and the period for which the job search must
continue or the number of contacts that must be
made, or such other measure as the State finds ap-
propriate.
‘‘(B) The State agency may require an individ-
ual employed in a WORK position or in regular em-
ployment to engage in job search but the number of
hours per week of required job search (or of the time
needed to comply with the job search requirement if
measured differently from hours per week) together
with the hours per week for which the individual is
employed may not exceed 35.
‘‘(C) The State agency shall require each indi-
vidual who has completed an assignment to perform
supervised job search (in accordance with the time
limits established under paragraph (1)) while await-
ing another assignment.
‘‘(2) OTHER ACTIVITIES.—If the State requires
that an individual registered under this part and
awaiting assignment to a WORK position engage in
any activities in addition to job search that would
prepare the individual to carry out successfully the
assignment or otherwise support achievement of the
purposes of this part, the State plan shall describe
those activities and the maximum periods of time for
which they may be required (or other measure that
the State finds appropriate), which may not exceed
35 hours per week.
‘‘(3) CHILD
CARE
AND
OTHER
SUPPORTIVE
SERVICES.—(A) The State agency shall notify each
individual registered with the WORK program of the
availability (under sections 402(g) (1) and (2)) of
child care and other supportive services necessary to
permit the individual to participate successfully in
the WORK program (during both a pre-assignment
period and a period of employment under the
WORK program).
‘‘(B) A State may, at its option, provide child
care and other supportive services (and include an
appropriate provision in its plan under this part) to
an individual employed in a WORK position to en-
able or assist such individual also to engage in edu-
cation or training activities, approved for this pur-
pose by the State agency as likely to enhance such
individual’s ability to secure and retain permanent,
unsubsidized employment, and if the State chooses
to provide any one or more such services under this
subparagraph, shall notify all registered individuals
who are potentially eligible therefor of the availabil-
ity of such services.
‘‘(c) COMPREHENSIVE POST-ASSIGNMENT ASSESS-
MENT.—The State agency shall conduct a comprehensive
assessment of each individual registered with the WORK
program after every second assignment completed by such
individual (or of an individual who has been registered for
two years). On the basis of this assessment, the State
may—
‘‘(1) reassign the individual to activities under
section 402(a)(19)(D) or to the JOBS program (for
such period of training and other activities as may
be appropriate), or
‘‘(2) assign the individual to another WORK
position if the individual was unable to find
unsubsidized employment either because there were
no jobs available that such individual had the nec-
essary skills to fill or because such individual is in-
capable of working outside of a sheltered environ-
ment.
Notwithstanding the preceding sentence, in such cases
where the State finds that the individual is employable and
living in an area where there are jobs available to match
the individual’s skills, the State may require the individual
to engage in intensive job search, supervised by a job de-
veloper who may require the individual to apply for appro-
priate job openings to determine if the individual is mak-
ing a good faith effort to find unsubsidized employment.
An individual who fails without good cause to apply for
appropriate job openings, cooperate with the job developer
or employer, or accept a private sector job opening, shall
be ineligible for aid under part A or an assignment under
the State’s WORK program for 6 months. Following such
a period of ineligibility, the State shall reassess such indi-
vidual’s status, and may take such steps under this sub-
section as it finds appropriate.
‘‘SEC. 496. FAILURE TO MEET WORK PROGRAM REQUIRE-
MENTS.
‘‘(a) ACTIONS
THAT
CONSTITUTE
FAILURE
TO
MEET WORK PROGRAM REQUIREMENTS.—The following
actions, without good cause, constitute failure by an indi-
vidual to meet the requirements of the WORK program—
‘‘(1) failing or refusing to accept a bona fide
offer of unsubsidized employment of at least 20
hours per week (or less if the offered employment
meets the criteria specified in section 482(d)(2));
‘‘(2) failing or refusing to accept or report for
a WORK position to which the individual has been
assigned;
‘‘(3) voluntarily leaving such a position; or
‘‘(4) failing or refusing to engage, to the extent
required under the State plan, in the job search or
other activities required pursuant to section 495 or
subsection (e).
‘‘(b) MISCONDUCT RESULTING IN DISCHARGE FROM
WORK POSITION.—In addition to the actions described
in subsection (a), a participant will be deemed to have
failed to meet the requirements of the WORK program
if, prior to the completion of an assignment, such partici-
pant is discharged by an employer from a WORK position
due to misconduct.
‘‘(c) DEFINITIONS
OF
GOOD
CAUSE
AND
MIS-
CONDUCT.—The Secretary shall issue regulations estab-
lishing criteria for determining what constitutes good
cause for purposes of subsections (a) and (g) and mis-
conduct for purposes of subsection (b). Such regulations
shall, at a minimum, include—
‘‘(1) with respect to the actions described in
paragraph (3) of subsection (a), a requirement that
a participant voluntarily leaving a WORK position
promptly notify the entity administering the WORK
program of the reasons for leaving; and
‘‘(2) with respect to discharge for misconduct,
a provision allowing the State, with the approval of
the Secretary, to apply the criteria relating to mis-
conduct applicable to the disqualification of an indi-
vidual for benefits under the State unemployment
compensation law.
‘‘(d) OPPORTUNITY FOR HEARING.—The State plan
shall provide advance notice to an individual when the
State agency determines that a sanction should be im-
posed, and shall advise the individual of the right to a
hearing. The State agency shall provide a hearing, upon
request by the individual, in accordance with procedures
established by the Secretary (which shall allow the State
to adopt procedures followed in hearings on unemployment
compensation claims that meet the standards set forth by
the United States Supreme Court in Goldberg v. Kelly,
397 U.S. 254 (1970).).
‘‘(e) INTERIM ACTIVITIES.—The State agency may
require, pending the hearing referred to in subsection (d),
participation by the individual in appropriate activities
under the WORK program.
‘‘(f) SANCTIONS.—If, in accordance with the preced-
ing provisions of the section, an individual is found to have
failed without good cause to meet a requirement of the
WORK program—
‘‘(1) if the failure involves subsection (a)(1) (re-
lating to an offer of unsubsidized employment), the
family of which such individual is a member shall be
ineligible for aid to families with dependent children
(if any such aid were otherwise payable) for a period
of six months and such individual may not be as-
signed to a WORK position during such period; and
‘‘(2) if the failure involves paragraph (2), (3),
or (4), of subsection (a) or involves subsection (b)—
‘‘(A) in connection with the first of any
such failures, the amount of aid for which the
family (of which such individual is a member)
is eligible shall for one month equal one-half of
the amount that would be payable to the family
if the individual were awaiting assignment to a
WORK position, but such reduction shall cease
upon the acceptance by such individual of an
assignment to a new WORK position or, in
cases involving job search or other required ac-
tivities (as described in subsection (a)(4)), the
individual’s engaging in the required program
activities;
‘‘(B) in connection with the second of any
such failures, the amount of aid so payable
shall be reduced as described in subparagraph
(A) for a 3-month period and the individual
may not be assigned during such period to a
new WORK position;
‘‘(C) in connection with the third of any
such failure, such family shall be ineligible for
any such aid for a 3-month period and the indi-
vidual may not be reassigned during such pe-
riod; and
‘‘(D) in connection with the fourth or any
subsequent such failure, such family shall be in-
eligible for any such aid for a 6-month period
and the individual may not be reassigned dur-
ing such period;
but during the months in which a sanction is applied
under this subsection, the family of which the sanctioned
individual is a member shall be considered, for purposes
of the State’s plan approved under part A, its plan ap-
proved under title XIX, to be receiving aid to families with
dependent children and for purposes of any other Federal
or federally-assisted program based on need, such family
shall be considered to be receiving the amount that would
be payable to such family if the individual were awaiting
assignment to a WORK position. Notwithstanding the
preceding sentence, if at any time an individual subject
to a sanction under this subsection accepts an offer of
unsubsidized employment in a position that meets the cri-
teria for WORK positions prescribed by subsection (a)(1),
the sanction shall cease at that time and both the individ-
ual and the family shall be considered, for purposes of part
A, to be an individual and family no longer subject to
sanction under this program.
‘‘(g) Notwithstanding section 493, no individual who
without good cause leaves an unsubsidized position that
provides 20 hours or more per week (or such greater num-
ber 
as 
the 
State 
has 
elected 
under 
section
482(a)(2)(A)(iii)) on the average, may register under sec-
tion 493(b) for the WORK program (of any State) until
after the 3-month period beginning on the date on which
the individual left the position.
‘‘(h) EVALUATION
FOLLOWING
SECOND
WORK
SANCTION.—The State plan must provide that the State
will promptly conduct a thorough evaluation of an individ-
ual (and family) against whom a second sanction must be
imposed to determine whether there are particular cir-
cumstances, not previously recognized by the State agen-
cy, that are contributing to the individual’s failure to meet
the requirements of the WORK program, and to provide,
where appropriate, any additional social services, evalua-
tions, or other diagnostic or remedial services or take such
other actions as may be necessary to assist the individual
and protect the other family members. In conducting the
evaluation, the State agency shall consider whether the in-
dividual is appropriately registered in the WORK pro-
gram, or whether the individual should be referred to the
State plan approved under part A to be considered an indi-
vidual to whom section 402(a)(19)(D) applies.’’.
(b) REQUIREMENT TO PROVIDE SUPPORTIVE SERV-
ICES TO INDIVIDUALS REGISTERED FOR WORK PRO-
GRAM.—Section 402(g)(2) is amended, by striking out
‘‘part F’’ and inserting in lieu thereof ‘‘part F or part
G’’.
SEC. 202. FEDERAL FUNDING FOR THE JOBS AND WORK
PROGRAMS; PARTICIPATION REQUIREMENTS;
MAINTENANCE OF EFFORT AND SUBSTAN-
TIAL IMPLEMENTATION.
(a) AMOUNT
OF
STATE’S
ENTITLEMENT
FOR
JOBS.—Paragraphs (1) through (4) of section 403(k) of
the Act are amended to read as follows:
‘‘(k)(1) In addition to payments under subsection (a),
the Secretary shall pay to each State with a plan approved
under part F an amount equal to the product of—
‘‘(A) the State’s enhanced Federal medical as-
sistance percentage as defined in subsection (m)(6),
and
‘‘(B) its expenditures to carry out the program
under part F (other than expenditures required by
section 402(g)(1)(A) in the case of the 50 States
and the District of Columbia),
but payments to a State under this title for any fiscal year
for such activities may not exceed the limitation under
paragraph (2) with respect to such State.
‘‘(2) The limitation under this paragraph with re-
spect to a State for any fiscal year is the amount that
bears the same ratio to the amount specified in paragraph
(3) for such fiscal year as the average monthly number
of adult recipients (as defined in paragraph (4)) in the
State in the preceding fiscal year bears to the average
monthly number of such recipients in all the States for
such preceding year.
‘‘(3) The amount specified in this paragraph is—
‘‘(A) $1,750,000,000 for fiscal year 1996,
‘‘(B) $1,700,000,000 for fiscal year 1997,
‘‘(C) $1,800,000,000 for fiscal year 1998,
‘‘(D) $1,900,000,000 for each of fiscal years
1999 through 2004, and
‘‘(E) $1,900,000,000, adjusted by the CPI as
prescribed by section 406(i), for fiscal year 2005
and each fiscal year thereafter,
reduced by 2 percent (for direct grants to Indian tribes
and Alaska Native organizations under section 482(i)),
and further reduced by 2 percent (of the amount specified
in each subparagraph) (or, in the case of fiscal years after
1998, 1 percent) for carrying out section 404 of the Work
and Responsibility Act of 1994 (relating to demonstra-
tions, research and evaluation, and technical assistance)
and further reduced in fiscal year 1996 by the amount
available to the Secretary for purposes of special adjust-
ments under subsection (p).
‘‘(4) For purposes of this subsection, the term ‘adult
recipient’ in the case of any State means an individual
other than a dependent child (unless such child is the cus-
todial parent of another dependent child) whose needs are
met in whole or in part with payments of aid to families
with dependent children or wages from a position under
the WORK program, or a combination of such aid and
wages.’’.
(b) PARTICIPATION STANDARDS
FOR JOBS PRO-
GRAM.—Section 403(k) of the Act is further amended by
adding at the end thereof the following new paragraphs:
‘‘(6)(A) Notwithstanding any other provision of
this subsection—
‘‘(i) if, with respect to a State in a fiscal
year, the average monthly number of individ-
uals receiving aid to families with dependent
children who are described in subparagraph
(B)(i) or (ii) of section 402(a)(19) but are not
included in subparagraph (D) thereof who par-
ticipate in an activity under the JOBS program
together with the reductions under subparagraph
(C) and subsection (l)(4)(A) for such fiscal year, and
if the additional payments exceed such reductions
the amount available to the Secretary for such fiscal
year under subsection (p) shall be reduced by the
amount of such excess.
‘‘(B) The Secretary shall issue regulations pre-
scribing criteria for determining what constitutes
participation by an individual for purposes of this
section, the periods of time over which participation
will be measured, and any other matters necessary
to implement the provisions of this subsection or of
subsection (l).
‘‘(C) If the average monthly number of individ-
uals in a fiscal year to whom the State applies sec-
tion 402(a)(19)(D)(vii) exceeds the limit prescribed
therein (or such greater limit as the Secretary may
have allowed), or if the average monthly number of
individuals with respect to whom the State extends
the time limit under section 417 exceeds the limit
prescribed in section 417(e) (or such greater limit as
the Secretary may have allowed), the Secretary shall,
notwithstanding any other provision of this section,
reduce by 25 percent for each month in such fiscal
year the Federal matching rate generally applicable
to such State’s expenditures for aid with respect to
the total number of individuals by which such aver-
age monthly numbers exceeds such limits.
‘‘(D) Notwithstanding subparagraph (A)(i), the
Federal payment shall not be increased if the Sec-
retary determines that the State has not accurately
recorded the number of months for which individuals
to whom section 417 applies have received aid, or
has not accurately recorded or reported to the Sec-
retary other required data, to an extent inconsistent
with standards for accuracy prescribed in regula-
tions by the Secretary.’’.
(c)(1) AMOUNT
OF STATE’S ENTITLEMENT
FOR
WORK.—Section 403(l) of the Act is amended by striking
out paragraphs (1) through (3) and inserting in lieu there-
of the following:
‘‘(l)(1) In addition to payments under subsections (a)
and (k), the Secretary shall pay to each State with a plan
approved under part G an amount to carry out its pro-
gram under such plan equal to the sum of—
‘‘(A) an amount equal to—
‘‘(i) such State’s expenditures to operate
its WORK program (other than expenditures to
which subparagraph (B) applies and expendi-
tures to which section 402(g)(1)(A) applies in
the case of the 50 States and the District of
Columbia), multiplied by
‘‘(ii) the State’s enhanced Federal medical
assistance percentage as defined in subsection
(m)(6), but such amount with respect to a
State for any fiscal year may not exceed the
limitation under paragraph (2) applicable to
such State for such fiscal year, and
‘‘(B) an amount equal to—
‘‘(i) the State’s expenditures for wages to
participants in its program under part G
(whether paid directly to the participant, or in
the form of wage subsidies to the participant’s
employer), multiplied by
‘‘(ii) such State’s Federal medical assist-
ance percentage, as defined in section 1905(b)
(or, where applicable, the last sentence of sec-
tion 1118).
‘‘(2) The limitation under this paragraph with re-
spect to a State for any fiscal year is the amount that
bears the same ratio to the amount specified in paragraph
(3) for such fiscal year as the sum of (i) the average
monthly number of individuals subject to the time limit
in section 417 (and who are subject to the requirement
to participate in the program under part F) in such State,
and (ii) the average monthly number of individuals reg-
istered in such State’s WORK program, bears to the total
of such sums of all the States for months in the preceding
fiscal year.
‘‘(3) The amount specified in this paragraph is—
‘‘(A) $200,000,000 for fiscal year 1998,
‘‘(B) $700,000,000 for fiscal year 1999,
‘‘(C) $1,100,000,000 for fiscal year 2000,
‘‘(D) $1,300,000,000 for fiscal year 2001,
‘‘(E) $1,400,000,000 for fiscal year 2002,
‘‘(F) $1,600,000,000 for fiscal year 2003,
‘‘(G) $1,700,000,000 for fiscal year 2004, and
‘‘(H) $1,700,000,000 adjusted by the CPI as
prescribed by section 406(i), and then multiplied by
the WORK program factor, as defined in paragraph
(4),
reduced by 2 percent (for direct grants to Indian tribes
and Alaska Native organizations under section 482(i)) and
further reduce by 2 percent (of the amount specified in
each subparagraph) (or in the case of fiscal years after
1998, 1 percent) for carrying out section 404 of the Work
and Responsibility Act of 1994 (relating to demonstra-
tions, research and evaluation, and technical assistance).
‘‘(4) For purposes of determining the amount speci-
fied in paragraph (3) for any fiscal year, the ‘WORK pro-
gram factor’ is the ratio of—
‘‘(A) the sum of the average monthly number of
recipients of aid who are individuals described in
section 402(a)(19)(B)(i) and WORK registrants
(who are not receiving aid) for months in the preced-
ing fiscal year, divided by the sum of the average
monthly number of all recipients of such aid and
WORK registrants (who are not receiving aid) for
months in such preceding fiscal year, to
‘‘(B) such quotient with respect to the average
monthly numbers for months in fiscal year 2004.’’.
(2) Paragraph (4) of section 403(l) (as in effect prior
to enactment of this Act) is redesignated as subsection
(k)(7) of section 403.
(d) PARTICIPATION STANDARDS FOR WORK PRO-
GRAM.—Section 403(l) of the Act is further amended by
adding at the end thereof the following new paragraphs:
‘‘(4)(A) Notwithstanding any other provision of
this paragraph, the Federal matching rate applicable
to a State’s expenditures for aid to families with de-
pendent children for a fiscal year shall be reduced
for each month in such year by 25 percent with re-
spect to the average monthly number of individuals
by which such State fails to meet its WORK partici-
pation standard for such year.
‘‘(B) For purposes of this paragraph, a State’s
WORK participation standard is met if—
‘‘(i) the average monthly number of posi-
tions to which WORK registrants are assigned
is not fewer than the number of such positions
that the Secretary requires that the State es-
tablish, taking into account the limitation appli-
cable to such State under paragraph (2) for the
fiscal year involved, and the amounts of assist-
ance necessary to locate or create WORK posi-
tions; or
‘‘(ii) the ratio of—
‘‘(I) the average monthly number of
individuals assigned to positions in the
WORK program, participating in job
search as required by the State plan under
part G following an assignment to a
WORK position, but for a period of no
longer than 3 consecutive months, being
sanctioned pursuant to section 496(f) or in
unsubsidized employment and not receiving
aid (but who at some time within the pre-
ceding 3 months were participating in the
WORK program), to
‘‘(II) the sum of the average monthly
number of individuals registered with the
State’s WORK program and the average
monthly 
number 
of 
individuals 
in
unsubsidized employment and not receiving
aid (but who at some time within the pre-
ceding 3 months were participating in the
State’s WORK program), is not less than
0.80.’’.
(e) PROVISIONS APPLICABLE TO JOBS, WORK, AND
CHILD CARE FUNDING.—Section 403(m) of the Act is
amended to read as follows:
‘‘(m)(1) If a State so requests, the limitation applica-
ble to such State under subsection (k)(2) for a fiscal year,
or the limitation applicable to such State under subsection
(l)(2) for such fiscal year, may be increased (and the other
limit decreased equally) by an amount up to 10 percent
of the sum of such limits for such fiscal year or, if less,
by the amount of the limit to be decreased. In the case
of fiscal 1997, the State may request that its limit under
subsection (k)(2) be reduced by up to 10 percent and the
amount made available for preparing to conduct its
WORK program.
‘‘(2) If the sum of the amount specified in any fiscal
year under subsection (k)(3), and the amount specified for
such fiscal year under subsection (l)(3), exceeds (or if the
Secretary estimates that it will exceed) the total amount
paid (or estimated to be payable) under subsections (k)(1)
and (l)(1)(A) for such fiscal year, then the Secretary shall
adjust the maximums applicable to payments to those
States to which the limits under such subsections have
made additional payment unavailable under either sub-
section (k)(1) or (l)(1)(A), and to which payments for
such fiscal year under either or both such subsections
would be greater but for the applicability to such States
of such limits. The Secretary shall by regulation provide
for the equitable adjustment of such limits in the case
where all States’ requests for adjustment of limits, and
additional payments, for a fiscal year under this para-
graph exceed the amount available for reallotment.
‘‘(3)(A) If in any fiscal year—
‘‘(i) the average rate of total unemployment in
a State for such fiscal year equals or exceeds 6.5
percent, and
‘‘(ii) the average rate of total unemployment in
such State for such fiscal year equals or exceeds 110
percent of such rate for either of the two preceding
fiscal years,
the percent applicable to such State for such fiscal year,
for purposes of applying each of subsections (k)(1)(A),
(l)(1)(A)(i), and (n)(1)(A), to the extent made possible by
the availability of additional amounts to such State pursu-
ant to paragraph (2), shall be applied as if it had been
increased by 10 percent of the difference between 100 per-
cent and the rate otherwise applicable in each of such sub-
sections, respectively, from the beginning of such fiscal
year (but if no such additional amount is made available,
such rates shall be unaffected by this subparagraph).
‘‘(B) The amounts specified in subsections (k)(3),
(l)(3), and (n)(3) for any fiscal year are each increased,
if, for either the last two quarters of the preceding fiscal
year, or the first two quarters of the fiscal year involved
(but not such last two quarters), the average rate of total
unemployment in the United States equals or exceeds 7
percent, by 2.5 percent plus an additional 0.25 percent
for each one-tenth of a percentage point by which the aver-
age rate of total unemployment in the United States (for
such two-quarter period) exceeds 7 percent.
‘‘(4) Notwithstanding the provisions of subsections
(k) and (l), no amount of a State’s expenditures as aid
to families with dependent children shall be excluded for
purposes of payment under subsection (a) by reason of
the State’s failure to meet the participation standards or
the limit on deferrals (under section 402(a)(19)(D)(vii))
or extensions of the time limit (under section 417(e)) ap-
plicable to the State’s program under part F for months
in the first year that such program is in effect, or by rea-
son of the State’s failure to meet the participation stand-
ard applicable to its program under part G during the first
year that such program is in effect.
‘‘(5) Prior to the general effective date of the amend-
ments to part F made by the Work and Responsibility Act
of 1994, or the general effective date of part G, as the
case may be, the Secretary shall issue regulations contain-
ing the necessary information to permit implementation
of such standards and application of reductions in Federal
payment for failure to meet such standards. Not later than
12 months after such amendments become effective with
respect to a State, such State shall be required to begin
reporting data as required by the Secretary in order to
determine whether the participation standards have been
met.
‘‘(6) As used in this part, a ‘State’s enhanced Federal
medical assistance percentage’ with respect to expendi-
tures for a fiscal year means such State’s Federal medical
assistance percentage as defined in section 1905(b) (or,
where applicable as defined in the last sentence of section
1118), plus
‘‘(A) 5 percentage points, but not less than 65
percent, with respect to fiscal years 1996 and 1997,
‘‘(B) 7 percentage points, but not less than 67
percent, with respect to fiscal year 1998,
‘‘(C) 9 percentage points, but not less than 69
percent, with respect to fiscal year 1999, and
‘‘(D) 10 percentage points, but not less than 70
percent, with respect to fiscal year 2000, and each
fiscal year thereafter.’’.
(f)(1) Section 402(g)(3)(A)(i) of the Act is amended
by striking out ‘‘Federal medical assistance percentage (as
defined in section 1905(b))’’ and inserting in lieu thereof
‘‘State’s enhanced Federal medical assistance percentage
(as defined in section 403(m)(6))’’.
(2) Section 402(g)(B)(A)(ii) of the Act is amended
by striking out ‘‘Federal medical assistance percentage (as
defined in section 1118)’’ and inserting in lieu thereof
‘‘State’s enhanced Federal medical assistance percentage
(as defined in section 403(m)(6))’’.
(g) Section 403 of the Act is amended by adding at
the end thereof the following new subsection:
‘‘(o) Notwithstanding the preceding provisions of this
section, the percentage applicable to a State for purposes
of section 402(g)(3)(A) and subsections (k)(1)(A),
(l)(1)(A)(ii), and (n)(1)(A) (for determining the Federal
payment with respect to a State’s JOBS program expendi-
tures, portions of its WORK program expenditures, and
its child care expenditures, respectively) shall be the
State’s Federal medical assistance percentage, but not less
than 60 percent (or, in the case of section 402(g)(3)(A)
and subsection (n)(1)(A), the State’s Federal medical as-
sistance percentage) for any fiscal year—
‘‘(1) in which the nonfederal share of the sum
of its expenditures that may be included for pur-
poses of subsection (a)(3) and its expenditures for
its program under part F, its program under part
G, and child care services under subsections (g) and
(i) of section 402 (not included under subsection
(a)(3)) is less than the nonfederal share of expendi-
tures for purposes of subsection (a)(3) and of ex-
penditures (for which Federal matching was pro-
vided) under its program under part F and child
care services (not included under subsection (a)(3))
under subsections (g) and (i) of section 402 for fis-
cal year 1994 (or fiscal year 1993 if such nonfederal
share were greater for such year), or
‘‘(2) in which the number of individuals to
whom the provisions of section 417 are being applied
is less than 90 percent of the number of individuals
in the State who are custodial parents described in
subparagraph (B)(i) of section 402(a)(19) (but not
included under subparagraph (D) thereof) unless the
State has submitted an approvable plan amendment
that provides for implementing all statutory require-
ments to its JOBS program, and meeting related re-
quirements with respect to 90 percent of such indi-
viduals within two years of the date such require-
ments first become effective.’’.
(h) SECRETARY’S SPECIAL ADJUSTMENT FUND.—
Section 403 of the Act is amended by adding at the end
thereof the following new subsection:
‘‘(p)(1) There shall be available to the Secretary from
the amount appropriated for payments under subsection
(k) for States’ JOBS programs for fiscal year 1996,
$300,000,000 for special adjustments to States’ limita-
tions on Federal payments for their JOBS and WORK
programs. Amounts made available to the Secretary pur-
suant to this subsection shall also be available for carrying
out subsection (k)(6) and section 404(c).
‘‘(2) A State may, not later than March 1 and Sep-
tember 1 of each fiscal year, submit to the Secretary a
request to adjust the limitation on payments under this
section with respect to its JOBS (and, in fiscal years after
1997) its WORK programs for the following fiscal year.
The Secretary shall only consider such a request from a
State which has, or which demonstrates convincingly on
the basis of estimates that it will, submit allowable claims
for Federal payment in the full amount available to it
under subsections (k) and (l) in the current fiscal year
and obligated 95% of its full amount in the prior fiscal
year. The Secretary shall by regulation prescribe criteria
for the equitable allocation among the States of Federal
payments pursuant to adjustments of the limitations re-
ferred to in the preceding sentence in the case where the
requests of all States that the Secretary finds reasonable
exceed the amount available, and, within 30 days following
the dates specified in this paragraph, will notify each State
whether one or more of its limitations will be adjusted in
accordance with the State’s request and the amount of the
adjustment (which may be some or all of the amount re-
quested).
‘‘(3) The Secretary may adjust the limitation on Fed-
eral payments to a State for a fiscal year under subsection
(k) and under subsection (l), and upon a determination
by the Secretary that (and the amount by which) a State’s
limitation should be raised, the amount specified in either
such subsection, or both, shall be considered to be so in-
creased for the following fiscal year.
‘‘(4) The amount made available under subsection (a)
for special adjustments shall remain available to the Sec-
retary until expended. That amount shall be reduced by
the sum of the adjustments approved by the Secretary in
any fiscal year, and the amount shall be increased in a
fiscal year by the amount by which all States’ limitations
under subsection (k), (l), and (n) for a fiscal year exceeded
the sum of the Federal payments under such subsections
for such fiscal year (after application of subsection
(m)(2)), but for fiscal years after 1977, such amount at
the 
end 
of 
such 
fiscal 
year 
shall 
not 
exceed
$400,000,000.’’.
SEC. 203. ADMINISTRATION OF THE JOBS AND WORK PRO-
GRAMS.
(a) STATE OPTION.—Part G of title IV of the Act
is amended by adding at the end thereof the following new
section:
‘‘ADMINISTRATION
‘‘SEC. 497. (a) The chief executive officer of any
State with a plan approved under part A may designate
a State agency (hereinafter referred to as the ‘JOBS/
WORK agency’), other than the agency established or des-
ignated under section 402(a)(3) (hereafter referred to as
the ‘part A agency’) to administer (or supervise the ad-
ministration of) the JOBS program under part F and the
WORK program under this part in such State.
‘‘(b) The JOBS/WORK agency designated under this
section and the part A agency shall jointly submit the
State plan required by parts F and G, and shall enter into
and provide to the Secretary an agreement setting out the
responsibilities of each agency. Any such agreement shall
provide—
‘‘(1) that the part A agency will retain respon-
sibility for—
‘‘(A) determining initial and continuing eli-
gibility of applicants for and recipients of (and
the amount of) aid to families with dependent
children;
‘‘(B) maintaining accurate records of the
number of months for which each individual re-
ceived aid, and notifying individuals of the re-
maining months of eligibility, in accordance
with the preceding provisions of this title;
‘‘(C) applying sanctions when appropriate
under the provisions of section 402(a)(19)(G)
or 496(f); and
‘‘(D) affording an opportunity for a fair
hearing as required by section 402(a)(4), or in
connection with any disagreement (with adverse
consequences) about the application of section
417 (other than matters about which the
JOBS/WORK agency provides a hearing);
‘‘(2) that each agency agrees to cooperate with
the other in order to exchange all information nec-
essary to carry out the programs involved in a man-
ner that simplifies as much as possible the burden
on recipients of aid under part A, and participants
in the programs under parts F and G, and allows
the most effective administration of all programs in-
volved;
‘‘(3) a specific description of how responsibility
will be allocated and coordinated between the two
agencies for the following functions:
‘‘(A) determining to which individuals sec-
tion 402(a)(19)(D) is applicable;
‘‘(B) determining the individuals to whom
extensions under section 417(e) are to be grant-
ed (and the length of such extensions); and
‘‘(C) conducting reviews, and providing
dispute resolution measures, including fair
hearings in appropriate cases, on disagreements
arising out of requirements under the JOBS or
WORK program; and
‘‘(4) that the requirements of paragraphs (4),
(5), (6), (9), (19), and (21)(A) of section 402(a) will
be applicable as appropriate to the joint plan sub-
mitted under this section to the same extent (and to-
gether with all relevant regulations issued there-
under by the Secretary) as they are to a State plan
submitted under part A.
‘‘(c) In each State in which the chief executive officer
designates an agency under subsection (a), the Secretary
shall make payment to the agency so designated in the
case of payments required under subsections (k) and (l)
of section 403, rather than to the State’s part A agency,
and the JOBS/WORK agency so designated shall be re-
sponsible for the proper expenditure of such funds.
‘‘(d) Upon designation by the chief executive officer
under subsection (a), and approval by the Secretary of the
State plan submitted in accordance with this section, all
references (whether direct or by context) in this Act to
the State agency responsible for the State plan under part
A shall be deemed to be references to the agency des-
ignated under this section when referring to a function
or responsibility of such agency.
‘‘(e) In any State administering a Statewide one-stop
career center system for the provision of employment and
training services, as defined by the Secretary in conjunc-
tion with the Secretary of Labor, the Governor shall en-
sure that the programs under parts F and G—
‘‘(1) participate in the operation of such sys-
tem, and
‘‘(2) make employment and training services
available to participants through the one-stop career
centers.’’.
SEC. 204. SPECIAL PROVISIONS RELATING TO INDIAN
TRIBES 
AND 
ALASKA 
NATIVE 
ORGANIZA-
TIONS.
(a) AUTHORITY TO ADMINISTER JOBS AND WORK
PROGRAMS.—Section 482(i) of the Act is amended—
(1) by redesignating paragraphs (5), (6), (7),
and (8) as paragraphs (6), (7), (8), and (9), respec-
tively, and
(2) by amending paragraphs (1) through (4) of
such subsection to read as follows:
‘‘(1)(A) An Indian tribe or Alaska Native orga-
nization may apply to the Secretary to conduct both
a JOBS program under this part, and a WORK pro-
gram under part G. An application to conduct these
programs in a fiscal year must be submitted not
later than July 1 of the preceding fiscal year. Upon
approval of the application, payment in the amount
determined in accordance with the succeeding provi-
sions of this subsection shall be made directly to the
tribe or organization involved.
‘‘(B) Neither the JOBS program nor the
WORK program set forth in the application of an
same ratio to 2 percent of the sum of the amounts
specified in sections 403(k)(3) and 403(l)(3) for
such fiscal year as the adult Indian or Alaska Native
population receiving aid to families with dependent
children residing within the area to be served by the
tribe or organization bears to the total of such
adults receiving such aid residing within all areas
which any such tribe or organization could serve.
The Secretary shall from time to time review the
components of the ratios established under the first
sentence of this subparagraph to determine whether
the individual payments under this subsection con-
tinue to reflect accurately the distribution of popu-
lation among the grantees, and shall make adjust-
ments necessary to maintain the correct distribution
of funding.
‘‘(3) A grantee under this subsection may use
up to 20 percent of its payment for the JOBS pro-
gram, or for the WORK program, as the case may
be, for a fiscal year to carry out such program in
the following fiscal year, and up to 10 percent of
such payment for either such program to carry out
the other such program in the fiscal year for which
the payment was made.
‘‘(4) At the request of a grantee, the Secretary
may approve use of up to 10 percent (or, if less,
$5000) of the payment for the JOBS program in
connection with an economic development project
upon a demonstration by the grantee that such
project will include provision for training JOBS pro-
gram participants in skills necessary for employment
on the project.
‘‘(5) An application under this subsection shall
provide that (upon approval) the grantee will be re-
sponsible for determining whether an individual
(within the grantee’s service area) to whom the time
limits of section 417 apply is one to whom section
402(a)(19)(D) is applicable, and whether (and for
how long) extensions of the time limit under section
417 should be provided and for reporting to the
State agency making payments of aid to the individ-
uals served by the grantee the determinations made
under this paragraph’’.
(b) CHILD CARE.—Section 403 is amended by adding
after and below subsection (b) the following new sub-
section:
‘‘(c)(1) Each Indian tribe and Alaska Native organi-
zation submitting an application under section 482(i) to
administer its JOBS and WORK programs under parts
100
F and G, respectively, may also submit to the Secretary
(as a part of the application) a description of the child
care needs of its JOBS and WORK program participants,
and of the program that it will implement to meet such
needs, and request direct funding for the provision of all
such child care. The child care program described need
not meet any requirement of this part (other than the re-
quirements of section 402(g)(1)(A)(viii)) that the Sec-
retary determines is inappropriate with respect to such
child care program.
‘‘(2) The Secretary shall pay to each Indian tribe and
each Alaska Native organization whose application ap-
proved under section 482(i) includes a request for direct
funding for child care an amount (without the requirement
of a nonfederal share) to provide child care for recipients
of AFDC and for participants in the tribe’s or organiza-
tion’s JOBS and WORK programs, and to provide transi-
tional child care with respect to an individual who is eligi-
ble for child care under section 402(g)(1)(A)(ii). The
amount of the payment provided under the preceding sen-
tence for a fiscal year shall not exceed the total amount
payable directly to such tribe or organization under section
482(i).
‘‘(3) The provisions of sections 402(g)(1)(A) (i) and
(ii) shall not be construed as imposing any obligation upon
101
a State to provide child care for the children of JOBS
or WORK program participants included within an ap-
proved application under section 482(i) that includes a re-
quest for direct funding of child care, during the period
for which such direct funding is provided.
‘‘(4) The Secretary shall establish data collection and
reporting requirements, and performance standards, with
respect to child care programs implemented under this
subsection.’’.
SEC. 205. SPECIAL RULES FOR THE TERRITORIES.
‘‘(a) EXCLUSION
FROM
GENERAL
CEILING
OF
JOBS, WORK, AND ‘‘AT-RISK’’ CHILD CARE.—Section
1108(a) of the Act is amended by striking out, in the mat-
ter preceding paragraph (1), ‘‘section 403(k)’’ and insert-
ing in lieu thereof ‘‘subsection (k), (l)(1), or (n) of section
403’’.
(b) Section 482 of the Act is amended by adding at
the end thereof the following new subsection:
‘‘(j) OPTIONS
FOR TERRITORIES.—(1) IN GEN-
ERAL.—Puerto Rico, the Virgin Islands, Guam, and
American Samoa may each determine whether the provi-
sions of section 417 shall be applicable under its State
plan approved under part A, and, if so, part G shall be
applicable. Each State exercising the option in the preced-
ing sentence shall submit the necessary plan amendments
102
and plans to the Secretary for approval. Any such plan
or plan amendment must also describe with respect to
such section 417 and part G (and all related amendments)
a phase-in strategy and a timetable for achieving full im-
plementation.
‘‘(2) SECRETARIAL WAIVERS.—The Secretary may
waive or modify any requirement pertaining to the provi-
sions of section 417, the program required under part G,
or the requirements of part A (including participation
rates and performance standards) that, as established
with reference to the 50 States and the District of Colum-
bia, would be inappropriate for a State to which this sub-
section applies.
‘‘(3) TERMINATION.—The applicability of section 417
and part G to a State to which this section applies may
be terminated voluntarily by such State, but following any
such termination, such State shall not be eligible to exer-
cise the option with respect to any year before the sixth
year following such termination.’’.
SEC. 206. TRAINING AND EMPLOYMENT FOR NON-CUSTO-
DIAL PARENTS.
Section 482 of the Act is amended by adding at the
end thereof the following new subsection:
‘‘(j) TRAINING AND EMPLOYMENT FOR NON-CUSTO-
DIAL PARENTS.—
103
‘‘(1) The Secretary shall approve the applica-
tion of a State to conduct a program of training and
employment opportunities for noncustodial parents
that meets the requirements of this subsection.
‘‘(2) An application to conduct a program
under this subsection shall—
‘‘(A) describe the political subdivision or
subdivisions, or other identifiable areas of the
State where the program will be conducted,
‘‘(B) describe the services that will be pro-
vided to participants, including the training, job
readiness services, and employment opportuni-
ties that will be available, and indicate whether
these will be provided through the program
under this part or under part G (or both) or
whether some or all of the activities under this
subsection will be conducted as a separate pro-
gram,
‘‘(C) describe the supportive services that
will be provided to enhance the participant’s in-
volvement in the program and ability to obtain
employment and meet his or her child support
obligations,
‘‘(D) indicate whether the State will con-
duct a random assignment evaluation of the ef-
104
fects of the program on improved responsibility
in meeting child support obligations, and
‘‘(E) provide assurance that the State’s
program will comply with the requirements of
this subsection.
‘‘(3) The application must provide that a
noncustodial parent will be eligible to commence par-
ticipation in the program under this subsection if his
or her child is receiving aid to families with depend-
ent children (or the child’s custodial parent is receiv-
ing wages in connection with the program under
part G), or if the noncustodial parent owes past-due
child support which has been assigned to the State
agency administering the State plan approved under
part A and is unemployed. Paternity must be estab-
lished before a noncustodial father may enter the
program, and the noncustodial parent must be co-
operating in the establishment of a child support ob-
ligation and the entry of an award. If a parent who
has been participating in the program ceases to be
eligible therefor because the child with respect to
whom the support obligation exists is no longer eligi-
ble for aid to families with dependent children (and
the custodial parent is not receiving wages in con-
nection with the program under part G), the State
106
‘‘(6)(A) The State agency shall garnish sub-
sidized wages, or any stipends, paid in connection
with a non-custodial parent’s participation in the
program under this subsection, and remit them to
the State agency administering the State plan ap-
proved under part D for distribution as a child sup-
port collection in accordance with the provisions of
that part.
‘‘(B) The State may provide, if, with respect to
an individual participating in the program under
this subsection, it has jurisdiction over the child sup-
port obligation being enforced that hours of partici-
pation in program activities may, or a reasonable
basis, be credited to reduce amounts of past-due
child support owed to such State agency by the indi-
vidual.
‘‘(7)(A) A State with an application approved
under this subsection may use, for carrying out the
program described in such application in any fiscal
year, up to 10 percent of the sum of the amounts
available to it for such fiscal year under subsection
(k)(2) and (l)(2) of section 403. The State shall be
entitled to so much of such amount as equals the
percentage specified in section 403(k)(1)(A) multi-
107
plied by its expenditures necessary to carry out its
approved application.
‘‘(B) A State may include, as expenditures nec-
essary to carry out its approved application,
amounts expended for stipends, wage subsidies, sup-
portive services, training, and administrative costs of
the State agency directly related to the program
under this subsection.’’.
SEC. 207. FEDERAL TAX TREATMENT OF WORK REMUNERA-
TION.
(a) WORK REMUNERATION INELIGIBLE FOR EARNED
INCOME TAX CREDIT.—Subparagraph (B) of section
32(c)(2) (defining earned income for purposes of the
Earned Income Tax Credit) of the Internal Revenue Code
of 1986 is amended by striking ‘‘and’’ at the end of clause
(ii), by striking the period at the end of clause (iii) and
inserting in lieu thereof ‘‘, and’’, and by inserting after
clause (iii) the following clause:
‘‘(iv) no amount of remuneration re-
ceived for services provided in a WORK
position to which the taxpayer was as-
signed under part G of title IV of the So-
cial Security Act shall be taken into ac-
count.’’.
108
(b) WORK REMUNERATION INELIGIBLE FOR TAR-
GETED JOBS TAX CREDIT.—Section 51(b) (defining
qualified wages for purposes of the Targeted Jobs Tax
Credit) of the Internal Revenue Code of 1986 is amended
by inserting after paragraph (3) the following new para-
graph (4):
‘‘(4) SPECIAL RULES FOR WORK POSITIONS.—
‘‘(A) QUALIFIED WAGES.—No amount of
remuneration received for services provided in a
WORK position to which an employee was as-
signed under part G of title IV of the Social Se-
curity Act shall be treated as qualified wages.
‘‘(B) QUALIFIED
FIRST-YEAR
WAGES.—
The 1-year period described in paragraph (2) is
determined without regard to the period in
which the employee provided services in a
WORK position to which the employee was as-
signed under part G of title IV of the Social Se-
curity Act.’’.
(c) WORK REMUNERATION
NOT
SUBJECT
TO
FUTA.—Section 3306(b) (defining wages for purposes of
the Federal unemployment tax) of the Internal Revenue
Code of 1986 is amended by striking ‘‘or’’ at the end of
paragraph (15), by striking the period at the end of para-
109
graph 16 and inserting in lieu thereof ‘‘, or’’, and by in-
serting after paragraph (16) the following paragraph:
‘‘(17) remuneration paid for services provided
in a WORK position to which the employee was as-
signed under part G of title IV of the Social Secu-
rity Act.’’.
(d) WORK REMUNERATION
EXCLUDED
FROM
GROSS INCOME.—The Internal Revenue Code of 1986 is
amended by redesignating section 137 (containing certain
cross references) as section 138, and by inserting after
section 136 the following section:
SEC. 137. WORK PROGRAM
REMUNERATION.—
Gross income shall not include any remuneration received
for services provided in a WORK position to which the
individual was assigned under part G of title IV of the
Social Security Act.’’.
TITLE III—CHILD CARE
SEC. 301. CHILD CARE FOR JOBS AND WORK PROGRAM
PARTICIPANTS AND AT-RISK FAMILIES.
(a) GUARANTEE WHILE IN WORK OR JOBS PRO-
GRAM.—(1) Section 402(g)(1)(A)(i)(I) of the Act is
amended by striking out the semicolon and inserting in
lieu thereof ‘‘(including employment under part G, or
other required activities under such part);’’.
(2) Section 402(g)(1)(A)(i) of the Act is amended—
110
(A) by striking out ‘‘(including participation in
a program that meets the requirements of subsection
(a)(19) and part (F))’’, and
(B) by striking out ‘‘approves the activity’’ and
inserting in lieu thereof ‘‘approves the activity as
part of the individual’s employability plan under
part F (regardless of whether resources are available
to provide other services or pay for other activities
to carry out such plan)’’.
(b) TRANSITIONAL CHILD CARE AFTER LEAVING
WORK PROGRAM.—
(1) Section 402(g)(1)(A)(ii) of the Act is
amended immediately following ‘‘aid to families with
dependent children’’ by inserting ‘‘or wages under
the program under part G’’.
(2)(A) Clause (iii) of section 402(g)(1)(A) of
the Act is amended by inserting before the period at
the end thereof ‘‘or wages under part G’’.
(B) Clause (iv) of such section is amended im-
mediately after ‘‘aid to families with dependent chil-
dren’’ by inserting ‘‘or wages under part G’’.
(c) HEALTH AND SAFETY STANDARDS; CONTINUITY
OF CARE.—(1) FOR RECIPIENTS.—Section 402(g)(1)(A)
of the Act is amended by adding at the end thereof the
following new subparagraphs:
111
‘‘(viii) Child care guaranteed
under this section, whether provided
by a method permitted under sub-
paragraph (B) or by means of an
agreement under subsection (j) with
the lead agency designated under the
Child Care and Development Block
Grant Act of 1990 (hereafter referred
to as the ‘CCDBG Act’), must meet
all health and safety standards estab-
lished by the lead agency (for pur-
poses of the CCDBG Act), and, in ad-
dition to any other requirements im-
posed pursuant to that Act, the State
agency must establish immunization
requirements and assure (and any
such agreement must provide) that,
consistent with regulations of the Sec-
retary (I) children whose child care is
paid for, in whole or in part, under
this subsection will be required to
have received all immunizations, at
the appropriate times, as currently
recommended by the Advisory Com-
mittee on Immunization Practices (an
112
advisory committee established by the
Secretary, acting through the director
of the Centers for Disease Control
and Prevention) as specified on the
pediatric vaccines list referred to in
section 1928(e), and (II) child care
providers used will take steps to as-
sure that toxic substances, weapons,
and any other items at the location
where the child care is provided that
could be harmful to young children,
will be secured and unobtainable by
the children.
‘‘(ix) The State plan must assure
that child care provided under this
subsection will conform in all ways to
the provisions for parental choice, un-
limited parental access, handling of
parental complaints, and consumer
education, as well as to all the other
standards, criteria, and requirements
applicable to child care provided under
the CCDBG Act.
‘‘(x) The State agency may, at
its option, provide or authorize the
113
provision of child care under this sub-
section (and if it exercises this option,
shall so advise the lead agency des-
ignated under the CCDBG Act, if it
has an agreement with such agency
under subsection (j)) to a child for
such periods of time as are necessary
to assure continuity of care even
though, for such periods, the individ-
ual whose participation in the pro-
gram under part F or part G or
whose employment is enabled by the
child care may have temporary inter-
ruptions in employment or training.’’.
(2) FOR AT-RISK FAMILIES.—Section 402(i) of the
Act is amended by redesignating paragraphs (5) and (6)
as paragraphs (8) and (9), respectively, and by inserting
after paragraph (4) the following new paragraphs:
‘‘(5) Child care provided under this subsection,
whether provided by a method permitted under para-
graph (2) or by means of an agreement under sub-
section (j) with the lead agency designated under
CCDBG Act, must meet all health and safety stand-
ards established by the lead agency (for purposes of
the CCDBG Act), and, in addition to any other re-
114
quirements imposed pursuant to that Act, the State
agency must establish immunization requirements
and assure (and any such agreement must provide)
that, consistent with the regulations of the Secretary
(i) children whose child care is paid for, in whole or
in part, under this subsection will be required to
have received all immunizations, at the appropriate
times, as currently recommended by the Advisory
Committee on Immunization Practices (as advisory
committee established by the Secretary, acting
through the director of the Centers for Disease Con-
trol and Prevention) as specified on the pediatric
vaccines list referred to in section 1928(e), and (ii)
child care providers used will take steps to assure
that toxic substances, weapons, and any other items
at the location where the child care is provided that
could be harmful to young children, will be secured
and unobtainable by the children.
‘‘(6) The State plan must assure that child care
provided under this subsection will conform in all
ways to the provisions for parental choice, unlimited
parental access, handling of parental complaints,
and consumer education, as well as to all other
standards, criteria, and requirements applicable to
child care provided under the CCDBG Act.
115
‘‘(7) The State agency may, at its option, pro-
vide or authorize the provision of child care under
this subsection (and if it exercises this option, shall
so advise the lead agency designated under the
CCDBG Act, if it has an agreement with such agen-
cy under subsection (j)) to a child for such periods
of time as are necessary to assure continuity of care
even though, for such periods, the individual whose
employment is enabled by the child care may have
temporary interruptions in employment.’’.
SEC. 302. RELATED AMENDMENTS.
(a) CHILD CARE FOR PARTICIPANTS IN THE JOBS
OR
WORK PROGRAM, 
AND
TRANSITIONAL
CHILD
CARE.—Section 402(g) of the Act is amended—
(1) by striking out, in paragraph (1)(A)(vii), ‘‘a
sliding scale formula’’ and all that follows and in-
serting in lieu thereof ‘‘the sliding fee scales estab-
lished by the lead agency designated under the Child
Care and Development Block Grant Act of 1990 as
required by section 658E(c)(5) of that Act.’’;
(2) by amending paragraph (1)(C)(i) by strik-
ing out clause (II) and inserting in lieu thereof ‘‘an
amount not less than the amount provided in the
State plan pursuant to this clause for January
1994.’’;
116
(3) by amending paragraph (3)(B) by adding
‘‘and’’ after clause (i), striking out ‘‘applicable
standards’’ and all that follows in clause (ii) and in-
serting in lieu thereof ‘‘all requirements, standards,
and criteria applicable to child care funded under
the CCDBG Act.’’, and by repealing clause (iii); and
(4) by repealing paragraphs (4) and (5).
(b) AT-RISK-CHILD CARE.—Section 402(i) of the Act
is amended—
(1) in paragraph (3)(A), by striking out ‘‘a slid-
ing scale formula’’ and all that follows and inserting
in lieu thereof ‘‘the sliding fee scales referred to in
subsection (g)(1)(A)(vii).’’;
(2) in paragraph (8)(B) (as redesignated by
section 401(c)(2)), by striking out ‘‘applicable stand-
ards of State and local law;’’ and inserting in lieu
thereof ‘‘all requirements, standards, and other cri-
teria applicable to child care funded under the
CCDBG Act;
(3) by repealing subparagraphs (C) and (D) of
such paragraph (8); and
(4) by amending paragraph (9) (as redesig-
nated) to read as follows:
‘‘(9) In order to facilitate more accurate analy-
sis of the supply and quality of child care resources,
117
the demand for such resources that cannot currently
be satisfied, and the effectiveness and relationship of
Federal programs providing support for child care
and child development activities, the Secretary shall
specify by regulation a core set of consistently de-
fined data elements for child care which must be
used by each State with respect to all reports relat-
ing to child care or child development activities sup-
ported in whole or in part under this Act or under
the CCDBG Act.’’.
SEC. 303. LIMITATION OF AT-RISK CHILD CARE TO FAMI-
LIES INELIGIBLE FOR RECIPIENT OR TRANSI-
TIONAL CHILD CARE.
Section 402(i)(1)(A) of the Act is amended to read
as follows:
‘‘(A) is not eligible for child care under
subsection (g);’’.
SEC. 304. OPTION TO CONSOLIDATE STATE RESPONSIBIL-
ITY FOR CHILD CARE.
(a) STATE OPTION.—Section 402 of the Act is
amended by adding at the end thereof the following new
subsection:
‘‘(j)(1) In order to provide the child care which must
be guaranteed pursuant to subsection (g) or which may
be furnished pursuant to subsection (i), the State agency
118
may enter into an agreement with the lead agency des-
ignated under section 658D of the CCDBG Act under
which—
‘‘(A) subject to paragraph (2), the State agency
will pay (either in advance or as reimbursement) the
lead agency for the cost of providing child care for
any child with respect to whom care must be guar-
anteed under subsection (g) or is to be furnished
under subsection (i), and the lead agency agrees that
care for all such children will only be paid for from
such reimbursement; and
‘‘(B) that (i) all child care provided by the lead
agency under the agreement, whether directly or by
contractual or other arrangements, will be subject to
the same requirements, standards, and other criteria
as are applicable to child care funded under the
CCDBG Act, and (ii) parents and children to whom
such care is provided will be offered all the same
protections and procedural safeguards as are appli-
cable to child care furnished under the CCDBG Act.
‘‘(2) LIMITS OF REIMBURSEMENT.—The State agen-
cy shall not pay the lead agency for care provided to a
child an amount (A) less than the minimum permitted
under subsection (g)(1)(C)(i)(II) and specified by the
State for fiscal year 1994 in its plan approved under this