Ill STAT. 594 PUBLIC LAW 105-33 —AUG. 5, 1997 " (2) LIMITATION ON AMOUNT TRANSFERABLE TO TITLE XX PROGRAMS. —^A State may use not more than 10 percent of the amount of any grant made to the State under section 403(a) for a fiscal year to carry out State programs pursuant to title XX.". 42 USC 604 note. (b) RETROACTIVITY.—The amendments made by subsection (a) of this section shall take effect as if included in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. SEC. 5003. LIMITATION ON NUMBER OF PERSONS WHO MAY BE TREAT- ED AS ENGAGED IN WORK BY REASON OF PARTICIPATION IN EDUCATIONAL ACTIVITIES. (a) IN GENERAL. —Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended to read as follows: " (D) LIMITATION ON NUMBER OF PERSONS WHO MAY BE TREATED AS ENGAGED IN WORK BY REASON OF PARTICIPA- TION IN EDUCATIONAL ACTIVITIES.— For purposes of determining monthly participation rates under paragraphs (l)(B)(i) and (2)(B) of subsection (b), not more than 30 percent of the number of individuals in all families and in 2-parent families, respectively, in a State who are treated as engaged in work for a month may consist of individuals who are determined to be engaged in work for the month by reason of participation in vocational educational training, or (if the month is in fiscal year 2000 or thereafter) deemed to be engaged in work for the month by reason of subparagraph (C) of this paragraph.". 42 USC 607 note. (b) RETROACTIVITY. —The amendment made by subsection (a) of this section shall take effect as if included in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. SEC. 5004. PENALTY FOR FAILURE OF STATE TO REDUCE ASSISTANCE FOR RECIPIENTS REFUSING WITHOUT GOOD CAUSE TO WORK. (a) IN GENERAL. —Section 409(a) (42 U.S.C. 609(a)), as amended by section 5001(f)(1)(A) of this Act, is amended by adding at the end the following: " (14) PENALTY FOR FAILURE TO REDUCE ASSISTANCE FOR RECIPIENTS REFUSING WITHOUT GOOD CAUSE TO WORK.— "(A) IN GENERAL.—If the Secretary determines that a State to which a grant is made under section 403 in a fiscal year has violated section 407(e) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not less than 1 percent and not more than 5 percent of the State family assistance grant. " (B) PENALTY BASED ON SEVERITY OF FAILURE. — The Secretary shall impose reductions under subparagraph (A) with respect to a fiscal year based on the degree of noncompliance.". 42 USC 609 note. (b) RETROACTIVITY.— The amendment made by subsection (a) of this section shall take effect as if included in the enactment of section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
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