95-8997. New and Pending Demonstration Project Proposals Submitted Pursuant to Section 1115(a) of the Social Security Act: March 1995

[Federal Register Volume 60, Number 70 (Wednesday, April 12, 1995)]
[Notices]
[Pages 18602-18606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8997]



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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: [phone] PHONE: [phone].

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]

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, [phone]
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, [phone]

III. Listing of Approved Proposals Since March 1, 1995

Project Title: Ohio--A State of Opportunity
Contact Person: Joel Rabb, [phone].

Project Title: Oklahoma--Mutual Agreement, A Plan for Success
Contact Person: Raymond Haddock, [phone].

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