Ch. 351                                    1996 LAWS OF MARYLAND

(iv) The recipient is pursuing or agrees to pursue an educational or
training program for which the recipient is eligible and otherwise suited, provided that
the completion of the program will substantially improve the recipient's prospects of
obtaining permanent employment in a full-time, unsubsidized job, and the recipient
provides periodic evidence to the Department of satisfactory progress; or

(v) A recipient meets any other specific criteria as defined by the
Secretary by regulation.

(3)     Whenever the Department grants an extension, the Department must
make an affirmative finding that good cause exists, including a statement specifying the
statutory or regulatory authority for the extension and the facts upon which the extension
is granted.

(4)     A recipient shall fulfill the work requirements of this subsection in one
of the following ways:

(i) By working at least 30 hours per week for a business that
participates in a grant diversion program;

(ii) By participating in a community work experience program, under
which the recipient shall perform community service interspersed with job search
activities and shall be required to work a minimum of 20 hours per week;

(iii) By working part time in an unsubsidized job and participating in a
community work experience program for a minimum of 20 hours per week; or

(iv) By working full time in an unsubsidized job.

(5)     A recipient may only be required to participate in the work requirements
of this subsection to the extent that necessary child care resources, work placement
resources, and transportation are available.

(6)     Contingent on the receipt of a federal waiver providing for at least 50
percent federal matching funds, a recipient who obtains full-time, unsubsidized
employment shall, if health insurance is not provided by the employer, receive up to 2
years of medical assistance coverage from the date of employment.

(7)     The amounts paid to a recipient under the grant diversion program shall
be considered to be earned income, as defined in § 32 (c)(2) of the Internal Revenue
Code, for purposes of the earned income tax credit to the extent allowed by law.

(f) (1) The Secretary shall create and establish a grant diversion program as
part of the pilot under this section.

(2)     The Secretary shall solicit participation in the grant diversion program
from businesses willing to hire AFDC recipients.

(3)     The Secretary shall pay businesses for their participation in the grant
diversion program from State and federal funds that have been appropriated for AFDC
payments and food stamps.

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