; and (2) in subsection (b)(2), by striking fiscal year 2012 and inserting each fiscal year . 6. Work requirements (a) Participation rate requirement Section 407 ( 42 U.S.C. 607 ) is amended by striking subsections (a) and (b) and inserting the following: (a) Participation rate requirement (1) In general A State to which a grant is made under section 403 for a fiscal year shall achieve a minimum participation rate of 50 percent with respect to all families residing in the State that include a work-eligible individual. (2) Work-eligible individual defined (A) In general In this subsection, the term work-eligible individual , subject to subparagraphs (B) and (C), means— (i) an adult recipient of assistance under the State program funded under this part or under any other State program funded by qualified State expenditures (as defined in section 409(a)(7)(B)(i)); (ii) a former recipient of such assistance who is— (I) a parent of a dependent child who is such a recipient; and (II) no longer eligible for assistance under the State program funded under this part by reason of section 408(a)(7); and (iii) a participant in a subsidized employment program funded under this part or under any other State program funded by qualified State expenditures (as defined in section 409(a)(7)(B)(i)). (B) Exclusion of individuals sanctioned or undergoing pre-sanction review The term work-eligible individual does not include any individual with respect to whom— (i) there is in effect a penalty imposed by the State under subsection (e) of this section; or (ii) the State has initiated (but not completed) the pre-sanction review process pursuant to section 408(a)(14)(A). (C) State option to exclude certain individuals A State may exclude from the term work-eligible individual any resident of the State who is— (i) a single parent caring for a child who has not attained 1 year of age