111
‘‘SEC. 485. MICROENTERPRISE.
‘‘(a) GRANTS AND LOANS TO NONPROFIT ORGANIZA-
TIONS FOR THE PROVISION OF TECHNICAL ASSISTANCE,
TRAINING, 
AND
CREDIT
TO
LOW-INCOME
ENTRE-
PRENEURS.—A State that establishes a program under
this part may make grants and loans to nonprofit organi-
zations to provide technical assistance, training, and credit
to low-income entrepreneurs for the purpose of establish-
ing microenterprises.
‘‘(b) MICROENTERPRISE DEFINED.—For purposes of
this section, the term ‘microenterprise’ means a commer-
cial enterprise which has 5 or fewer employees, 1 or more
of whom owns the enterprise.
‘‘SEC. 486. WORK SUPPLEMENTATION PROGRAM.
‘‘(a) IN GENERAL.—A State that establishes a pro-
gram 
under 
this 
part 
may 
institute 
a 
work
supplementation program under which the State, to the
extent it considers appropriate, may reserve sums that
would otherwise be payable under the State plan under
part A to participants in the program and use the sums
instead for the purpose of providing and subsidizing jobs
for the participants (as described in subsection (c)(3)(A)
and (B)).
‘‘(b) STATE FLEXIBILITY.—
‘‘(1) Nothing in this part, or in any State plan
approved under part A, shall be construed to prevent
112
a State from operating (on such terms and condi-
tions and in such cases as the State may find to be
necessary or appropriate) a work supplementation
program in accordance with this section and section
484 (as in effect before the date this part (as
amended by the Work First and Personal Respon-
sibility Act of 1996) first applies to the State).
‘‘(2) Notwithstanding any other provision of
law, a State may adjust the levels of the standards
of need under the State plan as the State determines
to be necessary and appropriate for carrying out a
work supplementation program under this section.
‘‘(3) Notwithstanding any other provision of
law, a State operating a work supplementation pro-
gram under this section may provide that the need
standards in effect in those areas of the State in
which the program is in operation may be different
from the need standards in effect in the areas in
which the program is not in operation, and the State
may provide that the need standards for categories
of recipients may vary among such categories to the
extent the State determines to be appropriate on the
basis of ability to participate in the work
supplementation program.
113
‘‘(4) Notwithstanding any other provision of
law, a State may make such further adjustments in
the amounts of assistance provided under the plan
to different categories of recipients (as determined
under paragraph (3)) in order to offset increases in
benefits from needs-related programs (other than
the State plan approved under part A) as the State
determines to be necessary and appropriate to fur-
ther the purposes of the work supplementation pro-
gram.
‘‘(5) In determining the amounts to be reserved
and used for providing and subsidizing jobs under
this section as described in subsection (a), the State
may use a sampling methodology.
‘‘(6) Notwithstanding any other provision of
law, a State operating a work supplementation pro-
gram under this section may reduce or eliminate the
amount of earned income to be disregarded under
the State plan to the extent the State determines to
be necessary and appropriate to further the purposes
of the work supplementation program.
‘‘(c) RULES RELATING TO SUPPLEMENTED JOBS.—
‘‘(1) A work supplementation program operated
by a State under this section may require that any
individual who is an eligible individual (as deter-
114
mined under paragraph (2)) shall take a supple-
mented job (as defined in paragraph (3)) to the ex-
tent that supplemented jobs are available under the
program. Payments by the State to individuals or to
employers under the work supplementation program
shall be treated as expenditures incurred by the
State for temporary employment assistance under
part A except as limited by subsection (d).
‘‘(2) For purposes of this section, an eligible in-
dividual is an individual who is in a category which
the State determines should be eligible to participate
in the work supplementation program, and who
would, at the time of placement in the job involved,
be eligible for assistance under an approved State
plan 
if 
the 
State 
did 
not 
have 
a 
work
supplementation program in effect.
‘‘(3) For purposes of this subsection, a supple-
mented job is—
‘‘(A) a job provided to an eligible individ-
ual by the State or local agency administering
the State plan under part A; or
‘‘(B) a job provided to an eligible individ-
ual by any other employer for which all or part
of the wages are paid by the State or local
agency.
115
A State may provide or subsidize under the program any
job which the State determines to be appropriate.
‘‘(d) COST LIMITATION.—The amount of the Federal
payment to a State under section 413 for expenditures in-
curred in making payments to individuals and employers
under a work supplementation program under this section
shall not exceed the amount which would otherwise be pay-
able under section 413 if the family of each individual em-
ployed in the State program under this section had re-
ceived the maximum amount of assistance payable under
the State plan under part A to such a family with no in-
come (without regard to adjustments under subsection
(b)) for the lesser of—
‘‘(1) 9 months; or
‘‘(2) the number of months in which the indi-
vidual was employed in the program.
‘‘(e) RULES OF INTERPRETATION.—
‘‘(1) This section shall not be construed as re-
quiring the State or local agency administering the
State plan under this part to provide employee sta-
tus to an eligible individual to whom the State or
local agency provides a job under the work
supplementation program (or with respect to whom
the State or local agency provides all or part of the
wages paid to the individual by another entity under