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‘‘(A) provides benefits to able-bodied individuals
(as determined by the Secretary) who have attained
age 18 and who have no dependents (hereafter referred
to in this subsection as ‘able-bodied individuals’);
‘‘(B) does not have a workforce program that
meets the participation rate requirements under
paragraph (4); and
‘‘(C) does not meet any other requirements set
forth in regulations issued by the Secretary.
‘‘(4)(A) The participation rate requirements under
this paragraph are as follows:
‘‘(i) In the case of a workfare program which is
implemented after the date of the enactment of this
subsection, the participation rate for such program
shall be—
‘‘(I) for the second year that the program is
operated, 10 percent; and
‘‘(II) for any succeeding year, the percent-
age for the preceding year plus 2 percent.
‘‘(ii) In the case of a workfare program which is
operating on the date of the enactment of this sub-
section, the participation rate for such program shall
be—
‘‘(I) for 1994—
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‘‘(aa) in the case of a program with a
participation rate below 10 percent for
1993, 10 percent; and
‘‘(bb) in the case of a program with a
participation rate between 10 percent and
50 percent for 1993, the program’s partici-
pation rate for 1993 plus 2 percent; and
‘‘(II) for any succeeding year, the percent-
age for the preceding year plus 2 percent.
‘‘(B) The participation rates required under clauses (i)
and (ii) of subparagraph (A) shall not exceed 50 percent.
‘‘(C) For purposes of this subsection, the term ‘partici-
pation rate’ means the percentage of the able-bodied indi-
viduals who receive general welfare assistance participating
in a workfare program.
‘‘(5) On or before the date which is 5 years after the
date of the enactment of this subsection, the Secretary shall
conduct a review of State and local participation rates and
submit to Congress a report containing any of the Sec-
retary’s recommendations with respect to the participation
rate requirements established under paragraph (4).’’.
(b)(1) Except as provided in paragraph (2), the
amendments made by subsection (a) shall apply to calendar
quarters beginning on or after July 1, 1994.
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(2) In the case of a State which the Secretary deter-
mines requires State legislation (other than legislation au-
thorizing or appropriating funds) in order to comply with
the amendments made by subsection (a), the State shall not
be regarded as failing to comply with such amendments
solely on the basis of its failure to meet the requirements
of such amendments before the first day of the first calendar
quarter beginning after the close of the first regular session
of the State legislature that begins after the date of the en-
actment of this Act. For purposes of the preceding sentence,
in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate
regular session of the State legislature.
Ω132æPage 19, after line 19, insert:
SEC. 205. LIMITATION ON USE OF CHAPTER 1 FUNDS BY
LOCAL EDUCATIONAL AGENCIES.
(a) AMENDMENT.—Subpart 6 of part F of chapter 1
of title I of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 2901 et seq.) is amended by adding at
the end the following new section:
‘‘SEC. 1492. LIMITATION ON LOCAL ADMINISTRATIVE EX-
PENSES.
‘‘(a) LIMITATION.—Notwithstanding any other provi-
sion of law, not more than 10 percent of the funds made
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available under this chapter to a local educational agency
shall be used for administrative expenses.
‘‘(b) DEFINITION.—For the purpose of this section the
term ‘administrative expenses’ means any expenditure of
funds under this chapter that is not used to pay the salary
of instructional personnel (personnel involved in the direct
instruction of pupils or in the training of teachers) or to
pay the cost of instructional material.’’.
(b) EFFECTIVE DATE.—Section 1492 of the Elemen-
tary and Secondary Education Act of 1965 shall be effective
in fiscal year 1994 and each succeeding fiscal year.
Attest:
Secretary.
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