(a) Except as provided in subsection (b) of this section and in regulations that the Secretary adopts, a local department may not pay temporary cash assistance to:

(1) a family that includes an adult who has received more than 60 cumulative months of temporary cash assistance funded wholly or partly by federal funds; or

(2) a family that includes an adult who:

(i) has received more than 24 cumulative months of temporary cash assistance funded wholly or partly by federal funds; and

(ii) is not participating in a work activity.

(b) The Secretary shall adopt regulations that establish:

(1) standards and procedures under which a local department may exempt a family from the limitation under subsection (a)(1) of this section because of hardship; and

(2) a separate State program that:

(i) is funded entirely from State general funds that may be counted toward any federal maintenance of effort requirement;

(ii) pays temporary cash assistance to a family that is exempted under item (1) of this subsection but cannot receive federal funds because of federal limitations; and

(iii) is subject to all FIP requirements under this subtitle.

(c) The provisions of this section are subject to federal law and regulation.