New and Pending Demonstration Project Proposals Submitted Pursuant to Section 1115(a) of the Social Security Act: October, 1995

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

New and Pending Demonstration Project Proposals Submitted

Pursuant to Section 1115(a) of the Social Security Act: October, 1995

AGENCY: Administration for Children and Families, HHS.

ACTION: Notice.

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SUMMARY: This notice lists new proposals for welfare reform and

combined welfare reform/Medicaid demonstration projects submitted to

the Department of Health and Human Services for the month of October,

1995. It includes both those proposals being considered under the

standard waiver process and those being considered under the 30 day

process. Federal approval for the proposals has been requested pursuant

to section 1115 of the Social Security Act. This notice also lists

proposals that were previously submitted and are still pending a

decision and projects that have been approved since October 1, 1995.

The Health Care Financing Administration is publishing a separate

notice for Medicaid only demonstration projects.

Comments: We will accept written comments on these proposals. We will,

if feasible, acknowledge receipt of all comments, but we will not

provide written responses to comments. We will, however, neither

approve nor disapprove new proposals under the standard application

process for at least 30 days after the date of this notice to allow

time to receive and consider comments. Direct comments as indicated

below.

ADDRESSES: For specific information or questions on the content of a

project contact the State contact listed for that project.

Comments on a proposal or requests for copies of a proposal should

be addressed to: Howard Rolston, Administration for Children and

Families, 370 L'Enfant Promenade, S.W., Aerospace Building, 7th Floor

West, Washington DC 20447. FAX: (202) 205-3598 PHONE: (202) 401-9220

SUPPLEMENTARY INFORMATION:

I. Background

Under Section 1115 of the Social Security Act (the Act), the

Secretary of Health and Human Services (HHS) may approve research and

demonstration project proposals with a broad range of policy

objectives.

In exercising her discretionary authority, the Secretary has

developed a number of policies and procedures for reviewing proposals.

On September 27, 1994, we published a notice in the Federal Register

(59 FR 49249) that specified (1) the principles that we ordinarily will

consider when approving or disapproving demonstration projects under

the authority in section 1115(a) of the Act; (2) the procedures we

expect States to use in involving the public in the development of

proposed demonstration projects under section 1115; and (3) the

procedures we ordinarily will follow in reviewing demonstration

proposals. We are committed to a thorough and expeditious review of

State requests to conduct such demonstrations.

On August 16, 1995, the Secretary published a notice in the Federal

Register (60 FR 42574) exercising her discretion to request proposals

testing welfare reform strategies in five areas. Since such projects

can only incorporate provisions included in that announcement, they are

not subject to the Federal notice procedures. The Secretary proposed a

30 day approval process for those provisions. As previously noted, this

notice lists all new or pending welfare reform demonstration proposals

under section 1115. Where possible, we have identified the proposals

being considered under the 30 day process. However, the Secretary

reserves the right to exercise her discretion to consider any proposal

under the 30 day process if it meets the criteria in the five specified

areas and the State requests it or concurs.

II. Listing of New and Pending Proposals for the Month of October,

1995

As part of our procedures, we are publishing a monthly notice in

the Federal Register of all new and pending proposals. This notice

contains proposals for the month of October, 1995.

[[Page 56602]]

Project Title: California--Work Pays Demonstration Project

(Amendment).

Description: Would amend Work Pays Demonstration Project by adding

provisions to: reduce benefit levels by 10% (but retaining the need

level); reduce benefits an additional 15% after 6 months on assistance

for cases with an able-bodied adult; time-limit assistance to able-

bodied adults to 24 months, and not increase benefits for children

conceived while receiving AFDC.

Date Received: 3/14/94.

Type: AFDC.

Current Status: Pending

Contact Person: Glen Brooks, (916) 657-3291.

Project Title: California--Assistance Payments Demonstration

Project (Amendment).

Description: Would amend the Assistance Payments Demonstration

Project by: exempting certain categories of AFDC families from the

State's benefit cuts; paying the exempt cases based on grant levels in

effect in California on November 1, 1992; and renewing the waiver of

the Medicaid maintenance of effort provision at section 1902(c)(1) of

the Social Security Act, which was vacated by the Ninth Circuit Court

of Appeals in its decision in Beno v. Shalala.

Date Received: 8/26/94.

Type: Combined AFDC/Medicaid.

Current Status: Pending.

Contact Person: Bruce Wagstaff, (916) 657-2367.

Project Title: California--Work Pays Demonstration Project

(Amendment).

Description: Would amend the Work Pays Demonstration Project by

adding provisions to not increasing AFDC benefits to families for

additional children conceived while receiving AFDC.

Date Received: 11/9/94.

Type: AFDC.

Current Status: Pending.

Contact Person: Bruce Wagstaff, (916) 657-2367.

Project Title: California--School Attendance Demonstration Project.

Description: In San Diego County, require AFDC recipients ages 16-

18 to attend school or participate in JOBS.

Date Received: 12/5/94.

Type: AFDC.

Current Status: Pending.

Contact Person: Bruce Wagstaff, (916) 657-2367.

Project Title: Connecticut--A Fair Chance--Modification.

Description: Proposed modifications would: establish time limits;

disregard earnings for time-limited recipients up to poverty level;

reduce benefit increase for additional children by one-half; require

minor parents to live with adult; change redetermination, verification,

and reporting requirements; provide employer tax credits for hiring

AFDC recipients; require biometric identification as condition of

eligibility for unit; establish two-tier payment system for new

residents; simplify and conform AFDC and Food Stamp rules on resources;

allow 24 weeks of job search without child care guarantee; change good

cause criteria regarding participation; change JOBS sanctions; apply

uniform sanction policy for JOBS, child support, and voluntary quits;

extend transitional Medicaid to two years; provide transitional child

care while income below 75% of state median; limit the application

period for transitional child care to 6 months after leaving AFDC;

establish fee for child care for AFDC recipients; serve non-custodial

parents under JOBS.

Date Received: 8/10/95.

Type: Combined AFDC/Medicaid.

Current Status: Pending.

Contact Person: Nancy Wiggett, (203) 424-5329.

Project Title: Georgia--Jobs First Project.

Description: In ten pilot counties, would replace AFDC payment with

paid employment; extend transitional Medicaid to 24 months; eliminate

100 hour employment rule for eligibility determination in AFDC-UP

cases.

Date Received: 7/5/94.

Type: AFDC.

Current Status: Pending (not previously published).

Contact Person: Nancy Meszaros, (404) 657-3608.

Project Title: Hawaii--Families Are Better Together.

Description: Statewide, would eliminate 100-hour, attachment to the

work force, 30 day unemployment and principal wage earner criteria for

AFDC-UP families.

Date Received: 5/22/95.

Type: AFDC.

Current Status: Pending.

Contact Person: Patricia Murakami, (808) 586-5230.

Project Title: Illinois--Six Month Paternity Establishment

Demonstration.

Description: In 20 counties, would require the establishment of

paternity, unless good cause exists, within 6 months of application or

redetermination as a condition of AFDC and Medicaid eligibility for

both mother and child; would deny Medicaid to children age 7 and under,

exclude children from filing rules, and exempt Department from making

protective payments to eligible children, when custodial parent has not

cooperated in establishing paternity; delegate the establishment of

paternity in uncontested cases to caseworkers who perform assistance

payment or social service functions under title IV-A or XX.

Date Received: 7/18/95.

Title: AFDC/Medicaid.

Current Status: Pending.

Contact Person: Karan D. Maxson, (217) 785-3300.

Project Title: Kansas--Actively Creating Tomorrow for Families

Demonstration.

Description: Would, after 30 months of participation in JOBS, make

adults ineligible for AFDC for 3 years; replace $30 and 1/3 income

disregard with continuous 40% disregard; disregard lump sum income and

income and resources of children in school; count income and resources

of family members who receive SSI; exempt one vehicle without regard

for equity value if used to produce income; allow only half AFDC

benefit increase for births of a second child to families where the

parent is not working and eliminate increase for the birth of any child

if families already have at least two children; eliminate 100-hour rule

and work history requirements for UP cases; expand AFDC eligibility to

pregnant women in 1st and 2nd trimesters; extend Medicaid transitional

benefits to 24 months; eliminate various JOBS requirements, including

those related to target groups, participation rate of UP cases and the

20-hour work requirement limit for parents with children under 6;

require school attendance; require minors in AFDC and NPA Food Stamps

cases to live with a guardian; make work requirements and penalties in

the AFDC and Food Stamp programs more uniform; and increase sanctions

for not cooperating with child support enforcement activities.

Date Received: 7/26/94.

Type: Combined AFDC/Medicaid.

Current Status: Pending.

Contact Person: Faith Spencer, (913) 296-0775.

Project Title: Louisiana--Individual Responsibility Project.

Description: Statewide, would limit AFDC benefits to 24 months out

of a 60 month period for able-bodied recipients with extensions where

the individual has been actively seeking employment, where job

availability is unfavorable, where the individual loses a job for

factors unrelated to his job performance, or where the individual

requires up to one year to complete employment related education or

training; require each child to attend school and be immunized or the

child will be removed

[[Page 56603]]

from the budget group; and applies a full family sanction where the

parent has declined or refused an opportunity for full-time employment,

without good cause.

Date Received: 9/22/95.

Type: AFDC.

Current Status: Pending.

Contact Person: Sammy Guillory, (504) 342-4089.

Project Title: Maine--Welfare to Work Program.

Description: Statewide, would require caretaker relatives to sign a

family contract; require participation in parenting classes and health

care services; provide one-time vendor payments in lieu of AFDC for the

purpose of obtaining/retaining employment; provide voucher payments to

both married and unmarried minor parents; limit JOBS exemptions; expand

eligibility for Transitional Medicaid and Child Care and replace

sliding-scale fees with flat-rate fees; reduce Transitional Medicaid

reporting requirements; disregard entire value of one vehicle; and

apply any federal savings to the JOBS program services. In selected

sites, implement ASPIRE-Plus, a subsidized employment program, would

cash out food stamps, divert AFDC benefits and pass through all child

support collected to families who participate in ASPIRE-Plus.

Date Received: 9/20/95.

Type: AFDC/Medicaid.

Current Status: Pending.

Contact Person: Susan Dustin, (207) 287-3104.

Project Title: New Hampshire--Earned Income Disregard Demonstration

Project.

Description: AFDC applicants and recipients would have the first

$200 plus 1/2 the remaining earned income disregarded.

Date Received: 9/20/93.

Type: AFDC.

Current Status: Pending.

Contact Person: Avis L. Crane, (603) 271-4255.

Project Title: New Hampshire--New Hampshire Employment Program and

Family Assistance Program.

Description: Statewide, would replace AFDC with Employment Program

administered by both Employment Security Agency and Family Assistance

Program; require job search and other employment-related activities for

first 26 weeks of receipt followed by work-related activities for 26

weeks; eliminate JOBS target group funding requirement and change JOBS

reporting requirements; require recipients attending post-secondary or

part-time vocational training to participate in work-related

activities; eliminate JOBS services priority for volunteers; establish

limits for provision of transportation and other JOBS services based on

activity and local conditions; eliminate remoteness as exemption from

JOBS; require non-custodial parents to participate in JOBS; increase

earned income disregard to 50%; eliminate AFDC-UP eligibility

requirements; allow transitional case management for up to one year;

raise resource limit to $2,000 and exclude one vehicle and life

insurance policies; pass through child support directly to family; take

SSI income into account in determining eligibility/payment; eliminate

conciliation and apply JOBS sanction of 50% of AFDC benefits for three

months followed by no payment for three months, allowing option to

increase initial sanction up to 100%; exempt pregnant women from JOBS

only during third trimester; for minor parents cases, include in

assistance unit any parent or sibling living in the home; eliminate

gross income test; disregard educational grants; allow emergency

assistance for families with employment-related barriers; allow State

to eliminate the certificate option for child care and development

block grant funds and use of these funds for capital improvement;

eliminate ceiling on At Risk Child Care funds; provide that FFP for

AFDC not be reduced during life of demonstration; fund computer system

modifications at 80% FFP; require pregnant recipients to cooperate with

child support; require that AFDC apply for Medicaid as a unit and not

individually; eliminate requirement of receipt of AFDC for 3 of last 6

months in order to receive transitional Medicaid; and allow State to

require that some individuals be assigned to a managed care program;

substitute outcome measures for JOBS participation rates; change

participation requirements for parents with children under 6, UP

recipients and minors; establish a medical deduction; increase the

sanction for non-cooperation with child support; exempt individuals

with significant employment barriers from JOBS; treat lump sum income

and all real property, except a home, as a resource; and use 20% of

gross earned income as a Medicaid disregard. Also contains various Food

Stamp waivers.

Date Received: 9/18/95.

Type: AFDC.

Current Status: Pending.

Contact Person: Marianne Broshek, (603) 271-4442.

Project Title: New Hampshire--New Hampshire Employment Program.

Description: In three pilot sites, would require work after 6

months of AFDC receipt; eliminate the exemption from JOBS for women in

the second trimester of pregnancy; eliminate the JOBS exemption for

caretaker of a child under 3 but not less than 1 year of age; replace

the earned income disregard of $90 and $30 and \1/3\ with a 50%

disregard which is not time-limited; raise the resource limit for

recipients to $2,000; disregard full value of one vehicle per adult for

applicants and recipients; apply a full family sanction voluntarily

quitting a job or refusing to accept a job; apply a sanction of

reducing the payment standard by 30% for one month for failure to

comply with JOBS in the first instance, by 60% in the second instance

for one month, and in the third instance apply a full-family sanction

for three months or until compliance; and require non-custodial parents

to participate in JOBS.

Date Received: 10/6/95.

Type: AFDC.

Current Status: New: 30-Day Request.

Contact Person: Marianne Broshek, (603) 271-4442.

Project Title: North Carolina--Work First Program.

Description: Statewide would eliminate increase in AFDC benefits

resulting from a birth of a child, limit JOBS exemptions, require a

self-sufficiency contract, and limit AFDC receipt to 24 cumulative

months. Families who reach the time limit could not reapply for 3

years. The contract would require: cooperation with child support;

child immunizations and medical check-ups; school attendance; and that

teen parents live with a parent/adult and graduate from high school.

Failure to sign the contract would result in denial of the AFDC

application. Failure to comply would result in the loss of the adult's

AFDC benefits and (starting with the second sanction) Medicaid coverage

for of a minimum of: 3 months for the first sanction, 3 months for the

second, 6 months for the third, and 3 years for the fourth. The State

would offer new applicants a one-time payment in lieu of AFDC; expand

AFDC-UP eligibility; raise the resource limit to $3,000 and the vehicle

asset limit to $5,000 for AFDC and Food Stamps; and provide for

automatic food stamps eligibility for AFDC-eligible families.

Date Received: 9/20/95.

Type: AFDC/Medicaid.

Current Status: Pending.

Contact Person: Kevin Fitzgerald, (919) 733-3055.

Project Title: North Carolina--Cabarrus County Work Over Welfare

Demonstration Project.

Description: In Cabarrus County, would require AFDC and Food Stamps

[[Page 56604]]

applicants and recipients, with exemptions, to sign an agreement to

participate in employment and training for up to 40 hours per week;

would divert AFDC and Food Stamps benefits to private employers to

supplement wages; and would disregard those wages for AFDC, Food

Stamps, and Medicaid eligibility (for NPA participants). Also, would

extend the $30 and \1/3\ disregard to 2 years for unsubsidized

earnings. Individuals who not comply would be denied AFDC, Food Stamps,

and Medicaid (unless pregnant) according to the following schedule:

first, until compliance; second: for a minimum of 4 months; and third

and subsequently: for a minimum of 8 months. Adults who do not sign an

agreement would be denied AFDC, Food Stamps, and Medicaid (unless

pregnant) until they sign.

Date Received: 10/5/95.

Type: AFDC/Medicaid.

Current Status: New.

Contact Person: Kevin Fitzgerald, (919) 733-3055.

Project Title: Ohio--Ohio First.

Description: Statewide, would replace current earned income

disregards with $250 and \1/2\ for twelve months for recipients;

eliminate the work history requirement for married parents in AFDC-UP

cases; eliminate 100-hour rule for AFDC-UP; disregard of stepparent

income for four months; increase the vehicle asset limit; use

established vacancies for subsidized employment slots; require

applicant job search as a condition of family eligibility; maintain

food stamp benefit levels when the AFDC benefit is reduced as a result

of sanction; impose progressive sanctions for noncompliance with JOBS

leading to whole family sanctions; establish that failure to comply

with JOBS equates to failure to comply with work program requirements

under the Food Stamp Program; limit AFDC eligibility to 36 months out

of any 60 month period, unless exempt; allow the IV-D agency to

determine good cause for noncooperation with Child Support Enforcement;

change penalty for failure to cooperate with Child Support provisions

to include a whole family sanction if the failure continues for two

years; change penalty for fraud to include ineligibility for all

assistance unit members until payments received fraudulently have been

repaid; require development and signing of a self-sufficiency contract

as a condition of eligibility for the assistance unit; require pregnant

women receiving Medicaid to participate in substance abuse screening as

part of prenatal care; implement sanctions for failure to cooperate

with substance abuse screening leading to whole family sanctions.

Date Received: 10/27/95.

Type: AFDC/Medicaid.

Current Status: New.

Contact Person: Joel Rabb, (614) 466-3196.

Project Title: Oklahoma--Untitled.

Description: In four pilots conducted in five counties each, would

(1) extend transitional child care to up to 24 months; (2) require that

all children through age 18 be immunized and require that responsible

adults with preschool age children participate in parent education or

enroll the children in Head Start or other preschool program; (3) not

increase AFDC benefits after birth of additional children, but provide

voucher payment for the increment of cash benefits that would have been

received until the child is two years old; and (4) pay lesser of AFDC

benefit or previous state of residence or Oklahoma's for 12 months for

new residents.

Date Received: 10/27/95.

Type: AFDC.

Current Status: New.

Contact Person: Raymond Haddock, (405) 521-3076.

Project Title: Oregon--Oregon Option.

Description: As a statewide project, would incorporate waivers

already approved in 1992 for JOBS Welfare Program and in 1994 for the

JOBS Plus Demonstration with previously pending waiver requests to

increase vehicle asset limit and extend transitional child care.

Requests guaranteed level of federal funding, with funds not used for

benefits to be used for other community support or prevention programs.

Also would, with some exceptions, limit receipt of AFDC benefits to no

more than 24 out of 84 months for families with employable parents;

allow case manager to determine JOBS exemptions on an individual basis;

eliminate the time restrictions on job search; impose progressive

sanctions, leading to full-family ineligibility, for non-compliance

with JOBS; require ineligible alien parents of AFDC children to

participate in JOBS; require counseling for recipients with substance

abuse problems; require teen parents to live in an adult-supervised

setting; discontinue the AFDC-UP program from June through September

each year and eliminate the 100-hour rule and work history

requirements; increase asset limit to $2,500 for non-JOBS participants

and $10,000 for JOBS participants, and treat lump-sum payments as an

asset; require annual AFDC eligibility redeterminations; modify the

rules for potential liability under EBT.

Date Received: 7/10/95.

Type: AFDC/Medicaid.

Current Status: Pending.

Contact Person: Jim Neely, (503) 945-5607.

Project Title: Oregon--Expansion of the Transitional Child Care

Program.

Description: Provide transitional child care benefits without

regard to months of prior receipt of AFDC and provide benefits for 24

months.

Date Received: 8/8/94.

Type: AFDC.

Current Status: Pending.

Contact Person: Jim Neely, (503) 945-5607.

Project Title: Oregon--Increased AFDC Motor Vehicle Limit.

Description: Would increase automobile asset limit to $9000.

Date Received: 11/12/93.

Type: AFDC.

Current Status: Pending.

Contact Person: Jim Neely, (503) 945-5607.

Project Title: Pennsylvania--School Attendance Improvement Program.

Description: In 7 sites, would require school attendance as

condition of eligibility.

Date Received: 9/12/94.

Type: AFDC.

Current Status: Pending.

Contact Person: Patricia H. O'Neal, (717) 787-4081.

Project Title: Pennsylvania--Savings for Education Program.

Description: Statewide, would exempt as resources college savings

bonds and funds in savings accounts earmarked for vocational or

secondary education and disregard interest income earned from such

accounts.

Date Received: 12/29/94.

Type: AFDC.

Current Status: Pending.

Contact Person: Patricia H. O'Neal, (717) 787-4081.

Project Title: South Carolina--Family Independence Program.

Description: Statewide, would, with exceptions, time limit AFDC

benefits to families with able bodied adults to 24 months out of 120

months, not to exceed 60 months in a lifetime; eliminate increase in

AFDC benefit resulting from birth of children 10 or more months after

the family begins AFDC receipt, but provide benefits to such children

in the form of vouchers for goods and services permitting child's

mother to participate in education, training, and employment-related

activities; eliminate deprivation requirements, principal earner

provisions, work history requirements, and 100-hour rule for AFDC-UP;

increase AFDC resource limit to $2,500

[[Page 56605]]

and disregard as resources one vehicle with a market value up to

$10,000, the balance in an Individual Development Account (IDA) up to

$10,000, and the cash value of life insurance; disregard from income up

to $10,000 in lump sum payments deposited in an IDA within 30 days of

receipt, earned income of children attending school, and interest and

dividend income up to $400; require participation in a family skills

training program; require certain AFDC recipients to submit to random

drug tests and/or participate in alcohol or drug treatment; require

children to attend school; increase amount of child support passed

through to AFDC recipients; require more extensive information for

child support enforcement purposes; modify JOBS exemptions and good

cause criteria, and increase sanctions for non-compliance; make job

search a condition of eligibility; allow non-custodial parents of AFDC

children to participate in JOBS; pay transitional grant equaling 3

percent of the maximum family grant following employment; and provide

transitional grant Medicaid and child care for 12 months from the date

of employment for cases previously closed due to time limit.

Date Received: 6/12/95.

Type: AFDC.

Current Status: Pending.

Contact Person: Linda Martin (804) 737-6010.

Project Title: Texas--Achieving Change for Texans.

Description: Statewide, would implement requirement for a personal

responsibility agreement which addresses issues such as child support

cooperation, early medical screening for children, work requirements,

drug and alcohol abuse, school attendance, and parenting skills

training; would limit the caretaker exemption from employment services,

disregard the earned income and resources from earnings of a child, set

resource limits which promote independence from AFDC, eliminate work

history and 100-hour rules for otherwise eligible two-parent families.

In Bexar County would time-limit AFDC benefits to 12, 24, and 36 months

depending on education and job experience, with extensions of the time-

limit based on severe personal hardship, or in cases where the State

could not provide supportive services, or where the local economy was

in such state that the recipient could not reasonably be expected to

find employment, if State funds are available to continue assistance.

Transitional Medicaid and child care services would be provided to

individuals who exhaust their time-limited cash benefits. In two

metropolitan statistical areas establish Individual Development

Accounts to promote the transition to independence from AFDC, through

allowable account deductions for education, business start-up costs and

the like. In Fort Bend County would allow at recipient option, one-time

AFDC cash emergency assistance payments of $1,000 in lieu of ongoing

regular AFDC payments with prohibition from applying for regular AFDC

for a period of 12 months from date of receipt. In Dallas-Fort Worth

would require electronic imaging (fingerprinting combined with

photographic identification).

Date Received: 10/6/95.

Title: AFDC/Medicaid.

Current Status: Pending.

Contact Person: Kent Gummerman, (512) 438-3743.

Project Title: Utah--Untitled.

Description: Statewide, would exclude the value of a vehicle for

AFDC recipient families, including those also receiving Food Stamps.

Would not apply to initial eligibility determination.

Date Received: 10/3/95.

Type: AFDC.

Current Status: New.

Contact Person: Bill Biggs, (801) 538-4337.

III. Listing of Approved Proposals Since October 1, 1995

Project Title: Georgia--Work for Welfare Project.

Contact Person: Nancy Meszaros, (404) 657-3608.

IV. Requests for Copies of a Proposal

Requests for copies of an AFDC or combined AFDC/Medicaid proposal

should be directed to the Administration for Children and Families

(ACF) at the address listed above. Questions concerning the content of

a proposal should be directed to the State contact listed for the

proposal.

(Catalog of Federal Domestic Assistance Program, No. 93562;

Assistance Payments--Research)

Dated: November 3, 1995.

Howard Rolston,

Director, Office of Planning, Research and Evaluation.

[FR Doc. 95-27775 Filed 11-8-95; 8:45 am]

BILLING CODE 4184-01-P