; (B) by striking all that precedes paragraph (4) (as so redesignated by subparagraph (A)) and inserting the following: (b) Calculation of participation rates (1) In general (A) Average monthly rate For purposes of subsection (a), the participation rate of a State for a fiscal year is the average of the participation rates of the State for each month in the fiscal year. (B) Monthly participation rates The participation rate of a State for all families of the State for a month, expressed as a percentage, is— (i) the number of families in the State that include a work-eligible individual who is engaged in work for the month; divided by (ii) the total number of families in the State that include a work-eligible individual during the month. (2) Universal work participation rate calculation (A) Application A State may apply to the Secretary to apply this paragraph with respect to the State for a fiscal year. (B) Calculation (i) In general A State whose application under this paragraph is approved by the Secretary for a fiscal year shall be considered to be in compliance with subsection (a) for a month in the fiscal year if the total number of countable hours of work participation activities of families with work-eligible individuals in the State for the month is not less than the target number of hours of work participation activities for the State for the month. (ii) Target number of hours of work participation activities For purposes of clause (i), the target number of hours of work participation activities for a State for a month in a fiscal year is the amount equal to the number of weeks in the month multiplied by the product of— (I) the percentage equal to the minimum participation rate in effect under subsection (a) for the fiscal year (after the application of any reduction in such rate under paragraph (4) and the application of the minimum State engagement requirement in paragraph (8))