EXTENDED ELIGIBILITY FOR CHILD CARE.

SEC. 302. EXTENDED ELIGIBILITY FOR CHILD CARE. (a) In General.— Section 402(g)(1)(A) of the Social Security Act (as added by section 301 of this Act) is amended— (1) by inserting “(i)” after “(A)”; 102 STAT. 2384 (2) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively; and (3) by adding at the end the following new clause: “(ii) Each State agency must guarantee child care, subject to the limitations described in this section, to the extent that such care is determined by the State agency to be necessary for an individual’s employment in any case where a family has ceased to receive aid to families with dependent children as a result of increased hours of, or increased income from, such employment or by reason of subsection (a)(8)(B)(ii)(II).”. (b) Payment.— (1) Section 402(g)(3)(A) of such Act (as added by section 301 of this Act) is amended— (A) by inserting “(i)” after “(A)”; and (B) by adding at the end the following new clause: “(ii) In the case of amounts expended for child care pursuant to paragraph (1)(A)(ii) (relating to the provision of child care for certain families which cease to receive aid under this part) by any State to which section 1108 applies, the applicable rate for purposes of section 403(a) shall be the Federal medical assistance percentage (as defined in section 1118).”. (2) Section 403(l)(1)(A) of such Act (as added by section 201(c)(2) of this Act) is amended by striking “402(g)(1)(A)” in the matter preceding clause (i) and inserting in lieu thereof “402(g)(1)(A)(i)”. (c) Limitations on Eligibility.— Section 402(g)(1)(A) of the Social Security Act (as added by section 301 of this Act and as amended by subsection (a)(3) of this section) is amended by adding after clause (ii) the following new clauses: “(iii) A family shall only be eligible for child care provided under clause (ii) for a period of 12 months after the last month for which the family received aid to families with dependent children under this part. “(iv) A family shall not be eligible for child care provided under clause (ii) unless the family includes a child who is (or, if needy, children in at least 3 of the 6 months immediately preceding the month in which the family became ineligible for such aid. “(v) A family shall not be eligible for child care provided under clause (ii) unless the family includes a child who is. (or, if needy, would be) a dependent child. “(vi) A family shall not be eligible for child care provided under clause (ii) for any month beginning after the caretaker relative who is a member of the family has— “(I) without good cause, terminated his or her employment; or “(II) failed to cooperate with the State in establishing and enforcing his or her child support obligations. “(vii) A family shall contribute to child care provided under clause (ii) in accordance with a sliding scale formula which shall be established by the State agency based on the family’s ability to pay.”. (d) Study of Welfare Requalification; Regulations Based on Results of Study.— The Secretary of Health and Human Services shall conduct a study to determine whether individuals who ceased receiving aid under the State program of aid to families with dependent children approved under this part have begun again to receive such aid in order to requalify for additional months of transition benefits, and if the study reveals that such is the case, the Secretary shall, not earlier than October 1, 1991, issue regulations which restrict such requalification. 102 STAT. 2385 (e) Study on Effects of Extending Eligibility for Child Care.— The Secretary of Health and Human Services shall conduct a study on the effectiveness of the amendments made by this section in reducing welfare dependence and assisting families in making the transition from welfare to employment, and such other effects of such amendments as the Secretary may find appropriate, and shall report the results of such study not later than September 30, 1997.