article: SECTION 1. AMENDMENT. Section 403 of the Social Security Act (42 U.S.C. 603) is amended by inserting after subsection (b) the following new subsection: ``(c)(1)(A) If the Secretary determines-- ``(i) that a State is operating a general welfare assistance program described in paragraph (3) during a calendar quarter, or ``(ii) that more than 20 percent of the local governments within a State that provide general welfare assistance are operating programs described in paragraph (3) during a calendar quarter, the Secretary shall reduce by 50 percent the amount that such State would otherwise receive under subsection (a) with respect to expenditures made by such State during such quarter for the administration of the aid to families with dependent children program under this part. ``(B) If a State receives a reduced payment in a calendar quarter as a result of a determination by the Secretary under subparagraph (A)(ii)-- ``(i) such State shall reduce for such quarter the payments made to each State office administering the aid to families with dependent children program which is located within the jurisdiction of the local governments described in subparagraph (A)(ii) by an amount equal to 50 percent of the of Federal share of the administrative expenses of such office; and ``(ii) such State shall not, as a result of such reduced payment, reduce for such quarter the payments made to any State office administering the aid to families with dependent children program which is not located within the jurisdiction of the local governments described in subparagraph (A)(ii). ``(2) If the Secretary determines that any local government within a State that is not described in paragraph (1)(A) is operating a general welfare assistance program described in paragraph (3) during a calendar quarter, the State shall reduce for such quarter the payments made to any State office administering the aid to families with dependent children program which is located within the jurisdiction of such local government by an amount equal to 50 percent of the of Federal share of the administrative expenses of such office and such amount shall be paid by the State to the Secretary. ``(3) A general welfare assistance program described in this paragraph is a general welfare assistance program that-- ``(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 workfare 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 percentage 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 subsection, the participation rate for such program shall be-- ``(I) for 1994-- ``(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 participation rate for 1993 plus 2 percent; and ``(II) for any succeeding year, the percentage 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 `participation rate' means the percentage of the able-bodied individuals 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 Secretary's recommendations with respect to the participation rate requirements established under paragraph (4).''. SEC. 2. APPLICATION OF AMENDMENT. (a) Except as provided in subsection (b), the amendment made by section 1 shall apply to calendar quarters beginning on or after July 1, 1994. (b) In the case of a State which the Secretary determines requires State legislation (other than legislation authorizing or appropriating funds) in order to comply with the amendments made by section 1, 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 enactment 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.
summary: Amends part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act to require States to implement workfare programs for able-bodied residents on welfare aged 18 or over with no dependents in order for the State to maintain its current level of Federal funding for AFDC administrative expenses.