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

1995. 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 March 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 any new proposal 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 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 SW., 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.

I. Listing of New and Pending Proposals for the Month of March, 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 March, 1995.

Project Title: Arizona--Employing and Moving People Off Welfare and

Encouraging Responsibility Program.

Description: Would not increase benefits for additional children

conceived while receiving AFDC; limit benefits to adults to 24 months

in any 60 month period; allow recipients to deposit up to $200/month

(with 50% disregarded) in Individual Development Accounts; require

minor mothers to live with parents; extend [[Page 18603]] Transitional

Child Care and Medicaid to 24 months and eliminate the 100-hour rule

for AFDC-U cases. Also, in a pilot site, would provide individuals with

short-term subsidized public or private OJT subsidized by grant

diversion which includes cashing-out Food Stamps.

Date Received: 8/3/94

Type: Combined AFDC/Medicaid

Current Status: Pending

Contact Person: Gail A. Parin, (602) 542-4702

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--AFDC and Food Stamp Compatibility

Demonstration Project

Description: Would make AFDC and Food Stamp policy more compatible by

making AFDC households categorically eligible for Food Stamps; allowing

recipients to deduct 40 percent of self-employment income in reporting

monthly income; disregarding $100 per quarter in non-recurring gifts

and irregular/infrequent income; disregarding undergraduate student

assistance and work study income if payments are based on need;

reinstating food stamp benefits discontinued for failure to file a

monthly report when good cause is found for the failure; and

simplifying vehicle valuation methodology.

Date Received: 5/23/94

Type: AFDC

Current Status: Pending

Contact Person: Michael C. Genest, (916) 657-3546

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: Michael C. Genest, (916) 657-3546

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: Eloise Anderson, (916) 657-2598

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: Michael C. Genest, (916) 657-3546

Project Title: California--Incentive to Self-Sufficiency Demonstration

Description: Statewide, would require 100 hours CWEP participation per

month for JOBS mandatory individuals who have received AFDC for 22 of

the last 24 months and are working fewer than 15 hours per week after

two years from JOBS assessment and: have failed to comply with JOBS

without good cause, have completed CWEP or are in CWEP less than 100

hours per month, or have completed or had an opportunity to complete

post-assessment education and training; provide Transitional Child Care

and Transitional Medicaid to families who become ineligible for AFDC

due to increased assets or income resulting from marriage or the

reuniting of spouses; increase the duration of sanctions for certain

acts of fraud.

Date Received: 12/28/94

Type: Combined AFDC/Medicaid

Current Status: Pending

Contact Person: Michael C. Genest, (916) 657-3546

Project Title: Delaware: A Better Chance

Description: Statewide, would implement a two-part demonstration. The

Welfare Reform Project (WRP), operating from 10/95-6/99, would include:

a 2-year limit on cash benefits for cases with able-bodied adults;

educational and employment services based on adult's age; in limited

cases benefits up to two additional years provided under pay-for-

performance workfare program; non-time-limited benefits for

unemployable cases; self-sufficiency contract requirements; education

and employment-related sanctions to be 1/3 reduction in AFDC and Food

Stamp benefits for first offense, 2/3 reduction for second, and loss of

Food Stamp benefits until compliance and permanent AFDC loss for third;

penalty for failure to comply with other contract requirements of $50

the first month, increasing by $50 per month until compliance; full-

family sanction for noncooperation with Child Support; no AFDC increase

for additional children; no 100-hour and work history rules for AFDC-

UP; exempting special education and business accounts up to $5,000;

fill-the-gap budgeting using child support and earnings; auto resource

limit of $4,500; $50 bonus to teens who graduate from high school;

additional 12 months of transitional child care and Medicaid benefits;

no time limit on job search; forward funding of EITC payment; requiring

teen parents to live in adult supervised setting, attend school,

participate in parenting and family planning education, and immunize

children; and providing JOBS services to non-custodial parents. The

Family Assistance Plan (FAP), beginning 7/99, would replace the AFDC

program and include: services, but no monetary grant, to children of

teen parents; benefits for up to two years under pay-for-performance

workfare program; welfare diversion payments and services; forward

funding of EITC payment; child care assistance; access to Medicaid

Managed Care System; no resource test; direct child support to family;

small residual cash benefit program for unemployable cases.

Date Received: 1/30/95

Type: Combined AFDC/Medicaid

Current Status: Pending

Contact Person: Elaine Archangelo, (302) 577-4400

Project Title: Georgia--Work for Welfare Project

Description: Work for Welfare Project. In 10 pilot counties would

require every non-exempt recipient and non-supporting parent to work up

to 20 hours per month in a state, local government, federal agency or

nonprofit organization; extends job search; and increases sanctions for

JOBS noncompliance. On a statewide basis, would increase the automobile

[[Page 18604]] exemption to $4,500 and disregard earned income of

children who are full-time students.

Date Received: 6/30/94

Type: AFDC

Current Status: Pending

Contace Person: Nancy Meszaros, (404) 657-3608

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

Contace Person: Faith Spencer, (913) 296-0775

Project title: Maine--Project Opportunity

Description: Increase participation in Work Supplementation to 18

months; use Work Supplementation for any opening; use diverted grant

funds for vouchers for education, training or support services; and

extend transitional Medicaid and child care to 24 months.

Date Received: 8/5/94

Type: Combined AFDC/Medicaid

Current Status: Pending

Contace Person: Susan L. Dustin, (207) 287-3106

Project title: Maryland--Welfare Reform Project

Description: Statewide, eliminate increased AFDC benefit for additional

children conceived while receiving AFDC and require minor parents to

reside with a guardian. In pilot site, require able-bodied recipients

to do community service work after 18 months of AFDC receipt; impose

full-family sanction on cases where JOBS non-exempt parent fails to

comply with JOBS for 9 months; eliminate 100-hour rule and work history

requirements for AFDC-UP cases; increase both auto and resource limits

to $5000; disregard income of dependent children; provide one-time

payment in lieu of ongoing assistance; require teen parents to continue

education and attend family health and parenting classes; extend JOBS

services to unemployed non-custodial parents; and for work

supplementation cases cash-out food stamps.

Date Received: 3/1/94

Type: AFDC

Current Status: Pending

Contace Person: Katherine L. Cook, (410) 333-0700

Project title: Massachusetts--Welfare Reform '95

Description: Statewide, would limit AFDC assistance to 24 months in a

60-month period, with provisions for extensions, for all non-exempt

recipients; reduce benefits for non-exempt recipients by 2.75 percent,

while increasing earned income disregard to $30 and one-half

indefinitely; establish the Work Program designed to end cash

assistance to non-exempt families, requiring recipients who cannot find

at least 20 hours per week of paid employment after 60 days of AFDC

receipt to do community service and job search to earn a cash

``subsidy'' that would make family income equal to applicable payment

standard; fund subsidized jobs from value of AFDC grant plus cash value

of Food Stamps for limited number of volunteer recipients; sanction

individuals who fail to comply with the Work Program by a reduction in

assistance equal to the parent's portion of the grant; establish an

Employment Development Plan (EDP) for non-exempt participants not

required to participate in the Work Program, requiring community

service for second failure to comply with EDP and full-family sanction

for second failure to comply with community service; require teen

parents to live with guardian or in supportive living arrangements and

attend school; require children under age 14 to attend school;

eliminate grandparent-deeming; strengthen paternity establishment

requirements and allow the IV-D agency to determine if participants are

cooperating; allow courts to order parents unable to pay child support

to community service programs; exclude from the grant calculation

children born to mothers while on AFDC; require child immunizatiom; pay

rent directly to landlords where caretaker has fallen behind six weeks

in payments; increase asset level to $2,500; increase equity value of a

vehicle to $5,000; establish wage assignment in cases of fraud or other

overpayments; increased penalties for individuals who commit fraud,

release AFDC fraud conviction information to Department of Revenue and

the Social Security Administration for cross-check, and deny benefits

to individuals with an outstanding default warrant issued by a State

court; allow State to issue a clothing allowance voucher for each

child; disregard the first $600 of lump sum income; require direct

deposit of benefits for recipients with bank accounts; and disregard

the 100-hour rule for eligibility for two-parent families.

Date Received: 4/4/95

Type: AFDC Only

Current Status: New (replaces application received 3/22/94)

Contact Person: Valerie Foretra, (617) 348-5508

Project Title: Mississippi--A New Direction Demonstration Program--

Amendment

Description: Statewide, would amend previously approved New Direction

Demonstration Program by adding provision that a family's benefits

would not increase as a result of additional children conceived while

receiving AFDC.

Date Received: 2/17/95

Type: AFDC

Current Status: Pending

Contact Person: Larry Temple, (601) 359-4476

Project Title: Missouri--Families Mutual Responsibility Plan

Description: Statewide, Missouri would require JOBS mandatory

applicants and recipients to sign a self-sufficiency agreement with a

24-month AFDC time limit to be extended an additional 24 months when

necessary. The agreement would allow a resource limit of $5000, an

earned income disregard of 50 percent of a family's gross earned income

for 12 consecutive months, [[Page 18605]] and standard earned income

disregards for remaining earned income. The agreement would require job

search and CWEP after the 24 or 48 month limit; and would sanction

individuals who do not comply without good cause as well as individuals

who re-apply for AFDC if they have completed an agreement entered after

July 1, 1997, if they received AFDC benefits for at least 36 months.

Further, Missouri would require all minor parent applicants and

recipients to live at home or in another adult-supervised setting;

disregard parental income of minor parents up to 100 percent of Federal

Poverty Guidelines; disregard earnings of minor parents if they are

students; provide an alternative to standard filing unit requirements

for households with minor parents; eliminate work history and 100-hour

rule for two-parent families under 21 yrs old; exclude the value of one

automobile; and allow non-custodial parents of AFDC children credit

against state child support debt for satisfactorily participating in

JOBS.

Date Received: 1/30/95

Type: AFDC

Current Status: Pending

Contact Person: Greg Vadner, (314) 751-3124

Project Title: Montana--Achieving Independence for Montanans

Description: Would establish: (1) Job Supplement Program consisting of

a set of AFDC-related benefits to assist individuals at risk of

becoming dependent upon welfare; (2) AFDC Pathways Program in which all

applicants must enter into a Family Investment Contract and adults'

benefits would be limited to a maximum of 24 months for single parents

and 18 months for AFDC-UP families; and (3) Community Services Program

requiring 20 hours per week for individuals who reach the AFDC time

limit but have not achieved self-sufficiency. The office culture would

also be altered in conjunction with a program offering a variety of

components and services; and simplify/unify AFDC and Food Stamp intake/

eligibility process by: 1) eliminating AFDC deprivation requirement and

monthly reporting and Food Stamp retrospective budgeting; 2) unifying

program requirements; 3) simplifying current income disregard policies.

Specific provisions provide for cashing out food stamps, expanding

eligibility for two-parent cases, increasing earned income and child

care disregards and resource limits, and extending transitional child

care.

Date Received: 4/19/94

Type: Combined AFDC/Medicaid

Current Status: Pending

Contact Person: Penny Robbe, (406) 444-1917

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

Waiver Title: New Mexico--Untitled Project

Description: Would increase vehicle asset limit to $4500; disregard

earned income of students; develop an AFDC Intentional Program

Violation procedure identical to Food Stamps; and allow one individual

to sign declaration of citizenship for entire case.

Date Received: 7/7/94

Type: AFDC

Current Status: Pending

Contact Person: Scott Chamberlin, (505) 827-7254

Project Title: North Dakota--Training, Education, Employment and

Management Project

Description: Would require families to develop a social contract

specifying time-limit for becoming self-sufficient; combine AFDC, Food

Stamps and LIHEAP into single cash payment with simplified uniform

income, expense and resource exclusions; increase income disregards and

exempt stepparent's income for six months; increase resource limit to

$5000 for one recipient and $8000 for families with two or more

recipients; exempt value of one vehicle; eliminate 100-hour rule for

AFDC-UP; impose a progressive sanction for non-cooperation in JOBS or

with child support; require a minimum of 32 hours of paid employment

and non-paid work; require participation in EPSDT; and eliminate child

support pass-through.

Date Received: 9/9/94

Type: AFDC

Current Status: Pending

Contact Person: Kevin Iverson, (701) 224-2729

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

Waiver 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: Virginia--Welfare to Work Program

Description: Statewide, would provide one-time diversion payments to

qualified applicants in lieu of AFDC; change first time JOBS non-

compliance sanction to a fixed period of one month or until compliance

and remove the conciliation requirement; require paternity

establishment as condition of eligibility; remove good cause for non-

cooperation with child support and exclude from AFDC grant caretakers

who cannot identify, misidentify, or fail to provide information on the

father; require minor parents to live with an adult guardian; require

AFDC caretakers without a high school diploma, aged 24 and under, and

children, aged 13-18, to attend school; require immunization of

children; allow $5000 resource exemption for savings for starting

business; and increase eligibility for Transitional and At-Risk Child

Care. Also: require non-exempt participants to sign an Agreement of

Personal Responsibility as a condition of eligibility and assign to a

work site under CWEP for a number of hours determined by dividing AFDC

grant [[Page 18606]] plus the value of the family's Food Stamp benefits

by the minimum wage; eliminate increased AFDC benefit for additional

children born while a family received AFDC; time-limit AFDC benefits to

24 consecutive months; increase earned income disregards to allow

continued eligibility up to the federal poverty level; provide 12

months transitional transportation assistance; modify current JOBS

exemption criteria for participants; eliminate the job search

limitation; and eliminate the deeming requirement for sponsored aliens

when the sponsor receives food stamps. In 12 sites, would operate sub-

component paying wages in lieu of AFDC benefits and Food Stamps for

CWEP and subsidized employment, increase eligibility for transitional

Medicaid; plus other provisions.

Date Received: 12/2/94

Type: Combined AFDC/Medicaid

Current Status: Pending

Contact Person: Larry B. Mason, (804) 692-1900

Project Title: Virginia--Virginia Independence Program

Description: Statewide, would provide one-time diversion payments to

qualified applicants instead of AFDC; change first time JOBS non-

compliance sanction to at least one month continuing until compliance

and remove conciliation requirement; make paternity establishment

within 6 months a condition of eligibility; suspend grant if mother is

not cooperating in paternity establishment; require minor parents to

live with adult guardian; eliminate benefit increase for children born

while a family receives AFDC; require AFDC caretakers without a high

school diploma, aged 24 and under, and children, aged 18 and under, to

attend school; require child immunization; allow $5000 resource

exemption for savings for starting business; increase Transitional

Child Care and Transitional Medicaid eligibility; and eliminate deeming

requirement for aliens when their sponsor receives food stamps. Also,

VIP would phase in statewide over 4 years a work component (VIEW) that

will require participants to sign an Agreement of Personal

Responsibility as a condition of eligibility; assign participants to a

work activity within 90 days of benefit receipt; time-limit AFDC

benefits to 24 consecutive months; increase earned income disregards

for continued eligibility up to the federal poverty level; disregard

value of one vehicle up to $7,500; provide 12 months transitional

transportation assistance; modify current JOBS participation exemption

criteria; eliminate limitation on job search; assign participants

involuntarily to subsidized work placements; apply full-family sanction

for refusal to cooperate with work programs; subject unemployed parents

to same work requirements as single recipients; and provide employer

subsidies from AFDC plus the value of Food Stamps.

Date Received: 12/2/94 and 3/28/95 (Amendments)

Type: Combined AFDC/Medicaid

Current Status: New (Amendments)

Contact Person: Barbara Cotter, (804) 692-1811

Project Title: Washington--Success Through Employment Program

Description: Statewide, would eliminate the 100-hour rule for AFDC-UP

families; impose a 10 percent grant reduction for AFDC recipients who

have received assistance for 48 out of 60 months, and impose an

additional 10 percent grant reduction for every additional 12 months

thereafter, and budget earnings against the original payment standard;

and hold the food stamp benefit level constant for cases whose AFDC

benefits are reduced due to length of stay on assistance.

Date Received: 2/1/95

Type: AFDC

Current Status: Pending

Contact Person: Liz Begert Dunbar, (206) 438-8350

III. Listing of Approved Proposals Since March 1, 1995

Project Title: Ohio--A State of Opportunity

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

Project Title: Oklahoma--Mutual Agreement, A Plan for Success

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

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: April 7, 1995.

Howard Rolston,

Director, Office of Policy and Evaluation.

[FR Doc. 95-8997 Filed 4-11-95; 8:45 am]

BILLING CODE 4184-01-P