[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5292 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5292

To increase State flexibility in funding child protection programs, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 2000

 Mrs. Johnson of Connecticut introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To increase State flexibility in funding child protection programs, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flexible Funding for Child 
Protection Act of 2000''.

                TITLE I--FLEXIBLE FUNDING DEMONSTRATIONS

SEC. 101. DEMONSTRATIONS OF FLEXIBLE FUNDING.

    (a) In General.--Section 1130A of the Social Security Act (42 
U.S.C. 1320a-10) is amended to read as follows:

``SEC. 1130A. DEMONSTRATIONS OF FLEXIBLE FUNDING.

    ``(a) Purpose.--The purpose of this section is to provide for the 
conduct of demonstration projects to determine whether providing States 
with flexible funding for child protection has an effect on caseload 
levels and enhances availability and use of services, efficiency of 
service delivery, and child safety, permanency, and well-being.
    ``(b) Consolidation of Grants.--
            ``(1) Applications.--
                    ``(A) Eligibility.--A State may submit to the 
                Secretary an application to conduct a demonstration 
                project in accordance with this subsection for 3 
                consecutive fiscal years with respect to 1 or more 
                categories of foster care expenditures or adoption 
                expenditures, unless section 1123A requires Federal 
                matching funds to be withheld from the State.
                    ``(B) Contents.--An application submitted by a 
                State pursuant to this subsection shall contain--
                            ``(i) an estimate of the State baseline for 
                        each fiscal year covered by the application;
                            ``(ii) a plan which--
                                    ``(I) sets forth a detailed 
                                description of how the amounts provided 
                                to the State under this subsection 
                                would be used to help achieve the 
                                purpose of this section, including a 
                                description of each activity for which 
                                any of the amounts would be expended;
                                    ``(II) contains the assurances set 
                                forth in section 422(b)(10);
                                    ``(III) does not impair the 
                                entitlement of any qualified child or 
                                family to benefits under the State plan 
                                approved under part E of title IV; and
                                    ``(IV) is consistent with any 
                                corrective action plan that the State 
                                may be implementing pursuant to section 
                                1123A;
                            ``(iii) the categories of expenditure that 
                        are to be included in the demonstration 
                        project; and
                            ``(iv) such other information as the 
                        Secretary may require.
            ``(2) Approval of applications.--
                    ``(A) In general.--Subject to subparagraph (B) of 
                this paragraph, beginning October 1, 2001, the 
                Secretary may approve an application submitted by a 
                State pursuant to paragraph (1) if--
                            ``(i) the application includes the 
                        agreement of the State and the Secretary on--
                                    ``(I) the amount of the State 
                                baseline for each fiscal year covered 
                                by the application; and
                                    ``(II) the participation of the 
                                State in any evaluation conducted 
                                pursuant to this section; and
                            ``(ii) the conduct of the demonstration 
                        project proposed by the application would not--
                                    ``(I) result in the State violating 
                                any assurance set forth in section 
                                422(b)(10);
                                    ``(II) result in any impairment of 
                                the entitlement of any qualified child 
                                or family to benefits under the State 
                                plan approved under part E of title IV.
                    ``(B) Limitation.--The Secretary may not approve 
                more than 5 applications submitted pursuant to this 
                subsection.
            ``(3) Effects of application approval.--
                    ``(A) Fixed payments to states for selected 
                categories of iv-e expenditures.--
                            ``(i) In general.--Subject to paragraph (6) 
                        of this subsection, a State with an approved 
                        application under this subsection shall be 
                        entitled to receive from the Secretary, for 
                        each calendar quarter of each fiscal year 
                        covered by the application, an amount equal to 
                        \1/4\ of the State baseline agreed on by the 
                        State and the Secretary for the fiscal year, in 
                        lieu of any payment under paragraph (1), (2), 
                        or (3) of section 474(a), or paragraph (1) or 
                        (2) of section 474(b), with respect to the 
                        expenditures of the State in the quarter in the 
                        categories of expenditure specified in the 
                        application.
                            ``(ii) Timing; adjustments.--The Secretary 
                        shall make a payment to a State under clause 
                        (i) for a calendar quarter on the 1st day of 
                        the quarter, the amounts reduced or increased 
                        to the extent of any prior overpayment or 
                        underpayment which the Secretary determines was 
                        made under this subsection or section 474 to 
                        the State for any prior quarter and with 
                        respect to which adjustment has not been made 
                        under this subsection or section 474.
                    ``(B) Relief from income determinations.--
                            ``(i) During period covered by 
                        application.--
                                    ``(I) In general.--During the 
                                period covered by an approved 
                                application of a State under this 
                                subsection, the State may determine the 
                                eligibility of a child for foster care 
                                maintenance payments under section 472 
                                and may make such payments, and may 
                                make adoption assistance payments under 
                                section 473 with respect to a child, 
                                without regard to any income 
                                requirement, to the extent that the 
                                foster care maintenance payments or 
                                adoption assistance payments are in a 
                                category of expenditure specified in 
                                the application.
                                    ``(II) Determinations relating to 
                                adoption assistance for states electing 
                                not to include adoption expenditures in 
                                application.--If an approved 
                                application of a State under this 
                                subsection does not apply with respect 
                                to any adoption expenditure, the State 
                                may elect to require the Secretary, in 
                                lieu of applying any income requirement 
                                to the families of the children with 
                                respect to whom the State has made an 
                                adoption expenditure in or after the 
                                period covered by the application and 
                                has submitted a claim under part E of 
                                title IV for the expenditure, to 
                                consider otherwise allowable adoption 
                                expenditures of the State allowable 
                                under such part in the same proportion 
                                as the average annual percentage of 
                                children with respect to whom State 
                                adoption expenditures were allowed 
                                under such part for the 3-year period 
                                preceding the period covered by the 
                                application.
                            ``(ii) Optional continuation.--Before the 
                        end of the period covered by an approved 
                        application of a State under this subsection, 
                        the State may make an irrevocable election to 
                        require the Secretary, in lieu of applying any 
                        income requirement to the families of the 
                        children with respect to whom the State has 
                        made a foster care expenditure or an adoption 
                        expenditure after the period and submitted a 
                        claim for the expenditure under part E of title 
                        IV, to consider otherwise allowable foster care 
                        expenditures or adoption expenditures of the 
                        State allowable under such part in the same 
                        proportion as the average annual percentage of 
                        children with respect to whom State foster care 
                        expenditures or adoption expenditures, as the 
                        case may be, were allowed under such part for 
                        the 3-year period preceding the period covered 
                        by the application.
                    ``(C) Limitation on use of funds.--A State may not 
                use any amount paid to the State under this subsection 
                for a fiscal year, except in accordance with the 
                approved application of the State under this subsection 
                for the fiscal year, subject to paragraph (4)(A).
            ``(4) Other state options.--
                    ``(A) Narrow scope of approved application.--A 
                State with an approved application under this 
                subsection may, at any time, elect to have the approved 
                application cease to apply to any category of 
                expenditure specified in the application, beginning 
                with any calendar quarter remaining in the period 
                covered by the application.
                    ``(B) Withdrawal.--Effective as of the beginning of 
                any calendar quarter remaining in the period covered by 
                an approved application of a State under this 
                subsection, the State may withdraw from participation 
in activities under this subsection, and this subsection (other than 
paragraph (3)(B)(ii)) shall cease to apply to the State, except with 
respect to any penalty required to be imposed at any time by reason of 
conduct that occurred before the effective date of the withdrawal.
            ``(5) Renewal.--
                    ``(A) In general.--On agreement between a State and 
                the Secretary as to the amount of the State baseline 
                for each year in the 3-year period following the period 
                covered by an application approved under this 
                subsection, the Secretary shall approve the renewal of 
                the application if the application contains such other 
                information as the Secretary may require.
                    ``(B) Limitation.--The Secretary may not approve an 
                application of a State under this subsection, to the 
                extent that the total number of years covered by 
                approved applications of the State under this section 
                would exceed 9.
            ``(6) Maintenance of effort.--
                    ``(A) Requirement.--If the Secretary determines 
                that the average of the historic expenditure levels in 
                effect with respect to a State for 2 consecutive fiscal 
                years covered by 1 or more applications approved under 
                this subsection exceeds the average of the total 
                amounts of qualified State expenditures in such fiscal 
                years:
                            ``(i) Reduction of amounts payable to 
                        state.--The total of the amounts otherwise 
                        payable to the State under this subsection or 
                        under paragraphs (1), (2), and (3) of section 
                        474(a) for each quarter in the succeeding 
                        fiscal year shall be reduced by an amount equal 
                        to \1/4\ of the excess.
                            ``(ii) Enhanced maintenance of effort 
                        requirement for next year.--The historic 
                        expenditure level otherwise in effect for the 
                        succeeding fiscal year with respect to the 
                        State shall be increased by an amount equal to 
                        the excess.
                    ``(B) Definitions.--
                            ``(i) Qualified state expenditures.--In 
                        this paragraph, the term `qualified State 
                        expenditures' means, with respect to a fiscal 
                        year, the sum of--
                                    ``(I) the total amount expended for 
                                child welfare services during the 
                                fiscal year by the child welfare agency 
                                of the State and the child welfare 
                                agencies of all political subdivisions 
                                of the State, from Federal, State, or 
                                local funds; and
                                    ``(II) at the option of the State, 
                                the amount (if any) by which the total 
                                of the amounts expended for child 
                                welfare services during the fiscal year 
                                by other agencies of the State or of a 
                                political subdivision of the State, 
                                from Federal, State, or local funds, 
                                exceeds the total of the amounts so 
                                expended during fiscal year 1998.
                            ``(ii) Child welfare services 
                        expenditures.--
                                    ``(I) In general.--For purposes of 
                                this paragraph, an amount shall be 
                                considered to have been expended for a 
                                child welfare service by an agency if 
                                the amount is expended directly by the 
                                agency, or by another entity under 
                                contract with the agency, to provide, 
                                or to cover any administrative cost 
                                related to the provision of, the 
                                service.
                                    ``(II) Prevention of double 
                                counting.--Notwithstanding item (aa) of 
                                this subclause, an amount that is taken 
                                into account as a qualified State 
                                expenditure for purposes of section 
                                409(a)(7) shall not be considered a 
                                qualified State expenditure for 
                                purposes of this paragraph.
                            ``(iii) Historic expenditure level.--
                                    ``(I) In general.--In this 
                                paragraph, the term `historic 
                                expenditure level in effect for a 
                                fiscal year with respect to a State' 
                                means the total amount expended for 
                                child welfare services during fiscal 
                                year 1998 by the child welfare agency 
                                of the State and the child welfare 
                                agencies of all political subdivisions 
                                of the State, from Federal, State, or 
                                local funds, increased by the inflation 
                                percentage in effect for the fiscal 
                                year.
                                    ``(II) Inflation percentage.--For 
                                purposes of subclause (I), the 
                                inflation percentage in effect for a 
                                fiscal year is the percentage (if any) 
                                by which--
                                            ``(aa) the average of the 
                                        Consumer Price Index (as 
                                        defined in section 1(f)(5) of 
                                        the Internal Revenue Code of 
                                        1986) for the preceding fiscal 
                                        year; exceeds
                                            ``(bb) the average of the 
                                        Consumer Price Index (as so 
                                        defined) for fiscal year 1998.
                                    ``(III) Adjustment for reduced 
                                federal funding of child welfare 
                                services.--
                                            ``(aa) In general.--The 
                                        historic expenditure level in 
                                        effect for a fiscal year with 
                                        respect to a State, as 
                                        determined under subclauses (I) 
                                        and (II), shall be decreased by 
                                        the amount (if any) by which 
                                        the total amount of Federal 
                                        funds available to the State or 
                                        any political subdivision of 
                                        the State for child welfare 
                                        services for the fiscal year is 
                                        less than the total amount of 
                                        such Federal funds that were 
                                        expended by the State or any 
                                        political subdivision of the 
                                        State for child welfare 
                                        services for fiscal year 1998.
                                            ``(bb) Penalty amounts 
                                        considered to be available.--
                                        For purposes of item (aa), an 
                                        amount withheld or recovered 
                                        from a State in a fiscal year 
                                        by reason of a failure of the 
                                        State to comply with part B or 
                                        E of title IV or this paragraph 
                                        shall be considered to have 
                                        been available to the State for 
                                        the fiscal year.
    ``(c) Transfer of Funds.--
            ``(1) Applications.--
                    ``(A) Eligibility.--A State may submit to the 
                Secretary an application to conduct a demonstration 
                project in accordance with this subsection for 3 
                consecutive fiscal years with respect to 1 or more 
                categories of foster care expenditures, unless section 
                1123A requires Federal matching funds to be withheld 
                from the State.
                    ``(B) Contents.--An application submitted by a 
                State pursuant to this subsection shall contain--
                            ``(i) an estimate of the State baseline for 
                        each year in the period covered by the 
                        application;
                            ``(ii) a plan which--
                                    ``(I) sets forth a detailed 
                                description of how the amounts provided 
                                to the State under this subsection 
                                would be used to help achieve the 
                                purpose of this section, including the 
                                costs of each activity for which any of 
                                the amounts would be expended;
                                    ``(II) contains the assurances set 
                                forth in section 422(b)(10);
                                    ``(III) does not impair the 
                                entitlement of any qualified child or 
                                family to benefits under the State plan 
                                approved under part E of title IV; and
                                    ``(IV) is consistent with any 
                                corrective action plan that the State 
                                may be implementing pursuant to section 
                                1123A;
                            ``(iii) the categories of expenditure that 
                        are to be included in the demonstration 
                        project; and
                            ``(iv) such other information as the 
                        Secretary may require.
            ``(2) Approval of applications.--
                    ``(A) In general.--Subject to subparagraph (B) of 
                this paragraph, beginning October 1, 2001, the 
                Secretary may approve an application submitted by a 
                State pursuant to paragraph (1) if--
                            ``(i) the State and the Secretary have 
                        agreed on--
                                    ``(I) the amount of the State 
                                baseline for each fiscal year covered 
                                by the application; and
                                    ``(II) the participation of the 
                                State in any evaluation conducted 
                                pursuant to this section; and
                            ``(ii) the conduct of the demonstration 
                        project proposed by the application would not--
                                    ``(I) result in the State violating 
                                any assurance set forth in section 
                                422(b)(10);
                                    ``(II) result in any impairment of 
                                the entitlement of any qualified child 
                                or family to benefits under the State 
                                plan approved under part E of title IV.
                    ``(B) Limitation.--The Secretary may not approve 
                more than 5 applications submitted pursuant to this 
                subsection.
            ``(3) Effects of application approval.--
                    ``(A) State payment options.--A State with an 
                approved application under this subsection for a fiscal 
                year shall elect to receive payments under this 
                subsection in accordance with only 1 of clause (i) or 
                (ii), as follows:
                            ``(i) Savings paid to the state at the end 
                        of the fiscal year.--In addition to any payment 
                        under part E of title IV for the fiscal year, 
                        the State shall be entitled to receive from the 
                        Secretary, subject to paragraph (4) of this 
                        subsection, an amount equal to the amount (if 
                        any) by which--
                                    ``(I) the State baseline for the 
                                fiscal year; exceeds
                                    ``(II) the total of all payments 
                                made to the State for the fiscal year 
                                under paragraph (1) or (3) of section 
                                474(a) with respect to the categories 
                                of expenditure specified in the 
                                application.
                            ``(ii) Advance payment of estimated savings 
                        and year-end reconciliation.--
                                    ``(I) State estimate of savings.--
                                The State shall transmit to the 
                                Secretary an estimate by the State of 
                                the amount by which the State baseline 
                                for the fiscal year will exceed the 
                                total of the amounts that will be 
                                payable to the State for the fiscal 
                                year under paragraph (1) or (3) of 
                                section 474(a) with respect to the 
                                categories of expenditure specified in 
                                the application.
                                    ``(II) Advance payment of estimated 
                                savings.--In addition to any payment 
                                under part E of title IV for the fiscal 
                                year, the State shall be entitled to 
                                receive from the Secretary, at the 
                                beginning of the fiscal year, subject 
                                to paragraph (4) of this subsection, an 
                                amount equal to the amount estimated by 
                                the State pursuant to subclause (I) of 
                                this clause.
                                    ``(III) Year-end reconciliation.--
                                            ``(aa) Savings paid to the 
                                        state.--If the State baseline 
                                        for the fiscal year exceeds the 
                                        sum of the amount paid to the 
                                        State for the fiscal year under 
                                        subclause (II) of this clause 
                                        and the total of the amounts 
                                        payable to the State for the 
                                        fiscal year under paragraph (1) 
                                        or (3) of section 474(a) with 
                                        respect to the categories of 
                                        expenditure specified in the 
                                        application, then the Secretary 
                                        shall make a further additional 
                                        payment to the State in an 
                                        amount equal to the excess 
                                        amount.
                                            ``(bb) Recovery of 
                                        overpayment.--If the amount 
                                        paid to the State for a fiscal 
                                        year under subclause (II) of 
                                        this clause plus the total of 
                                        the amounts payable to the 
                                        State for the fiscal year under 
                                        paragraph (1) or (3) of section 
                                        474(a) with respect to the 
                                        categories of expenditure 
                                        specified in the application 
                                        exceeds the State baseline for 
                                        the fiscal year, then the 
                                        Secretary shall reduce the 
                                        amount otherwise payable to the 
                                        State under such paragraphs for 
                                        each quarter in the succeeding 
                                        fiscal year by an amount equal 
                                        to \1/4\ of the excess amount.
                            ``(iii) Claims deadline.--For purposes of 
                        this subparagraph, the Secretary may not 
                        consider a claim submitted by a State with 
                        respect to an expenditure in a fiscal year more 
                        than 6 months after the end of the fiscal year.
                    ``(B) Limitation on use of funds.--A State may not 
                use any amount paid to the State under this subsection 
                for a fiscal year, except in accordance with the 
                approved application of the State under this subsection 
                for the fiscal year.
            ``(4) Maintenance of effort.--
                    ``(A) In general.--If a State baseline for the 
                fiscal year exceeds the total of the amounts payable to 
                the State for the fiscal year under paragraph (1) or 
                (3) of section 474(a) with respect to the categories of 
                expenditure specified in the application of the State 
                approved under this subsection, then, as a condition of 
                receiving an amount under this subsection for a fiscal 
                year, the State shall expend for the provision of child 
                welfare services, in addition to any other amount 
                required by Federal law to be so expended, an amount 
                equal to the sum described in subparagraph (B).
                    ``(B) Sum described.--The sum described in this 
                subparagraph with respect to a State is the sum of the 
                partial sums described in subparagraph (C) with respect 
to each category of expenditure specified in the application.
                    ``(C) Partial sums described.--The partial sum 
                described in this subparagraph with respect to a 
                category of expenditure is--
                            ``(i) 1 minus the percentage or proportion 
                        specified or referred to in paragraph (1) or 
                        (3) of section 474(a) with respect to the 
                        category of expenditure; multiplied by
                            ``(ii) the amount that bears the same ratio 
                        to the excess amount described in subparagraph 
                        (A) of this paragraph as the amount expended by 
                        the State in the category of expenditure bears 
                        to the total of the amounts payable to the 
                        State for the fiscal year under paragraph (1) 
                        or (3) of section 474(a) with respect to the 
                        categories of expenditure specified in the 
                        application.
    ``(d) Amendment of Applications and Projects.--
            ``(1) Applications.--A State may amend an application 
        approved by the Secretary under this section by submitting to 
        the Secretary an amendment consistent with this section.
            ``(2) Projects.--The Secretary shall develop a streamlined 
        process for consideration of amendments proposed by States to 
        demonstration projects conducted under this section.
    ``(e) Definitions.--In this section:
            ``(1) Foster care expenditures.--The term `foster care 
        expenditures' means expenditures in the following expenditure 
        categories:
                    ``(A) Foster care maintenance payments.--
                Expenditures for foster care maintenance payments under 
                section 472 for children in foster family homes or 
                child-care institutions.
                    ``(B) Foster care administrative non-training 
                expenses.--Expenditures for the proper and efficient 
                administration of the provisions of the State plan 
                approved under part E of title IV relating to foster 
                care except for training.
                    ``(C) Foster care training expenses.--Expenditures 
                for the proper and efficient administration of the 
                provisions of the State plan approved under part E of 
                title IV relating to foster care training.
            ``(2) Adoption expenditures.--The term `adoption 
        expenditures' means expenditures in the following expenditure 
        categories:
                    ``(A) Adoption assistance payments.--Expenditures 
                for adoption assistance under section 473 pursuant to 
                adoption assistance agreements.
                    ``(B) Adoption assistance administrative non-
                training expenses.--Expenditures for the proper and 
                efficient administration of the provisions of the State 
                plan approved under part E of title IV relating to 
                adoption except for training.
                    ``(C) Adoption assistance training expenses.--
                Expenditures for the proper and efficient 
                administration of the provisions of the State plan 
                approved under part E of title IV relating to adoption 
                assistance training.
            ``(3) State baseline.--The term `State baseline' means, 
        with respect to a State and a fiscal year, the total amount to 
        which the State would be entitled under section 474(a), in the 
        absence of this section, with respect to the expenditures of 
        the State in the fiscal year in the categories specified in the 
        application.
            ``(4) Fiscal year.--The term `fiscal year' means the 12-
        month period ending with September 30 of the year.
            ``(5) Child welfare services.--The term `child welfare 
        services' has the meaning given in section 425.
    ``(f) Approved Application Considered Part of State Plan.--For 
purposes of part E of title IV and section 1123A, an approved 
application of a State under this section shall be considered part of 
the State plan approved under such part for the period of time covered 
by the approved application.
    ``(g) Reports.--As soon as is practicable after each fiscal year 
for which a State has conducted a demonstration project under this 
section, the State shall prepare and submit to the Secretary a written 
report on the provision of child welfare services through the project, 
which shall include a statement of the total amount expended for each 
kind of child welfare service, and shall make the written report 
available to the general public. At the end of each 3-year period, the 
report shall include an assessment of the extent to which the 
demonstration project has achieved the purpose of this section.''.
    (b) Administrative Guidelines on Baseline Determinations.--Not 
later than April 1, 2001, the Secretary of Health and Human Services 
(in this section referred to as the ``Secretary'') shall issue 
administrative guidelines with respect to the information required in 
any application under section 1130A of the Social Security Act, 
including the manner in which the baselines described in such section 
are to be determined.
    (c) Regulations on Maintenance of Effort.--Within 12 months after 
the date of the enactment of this section, the Secretary shall 
prescribe such regulations as may be necessary to carry out subsections 
(b)(6) and (c)(4) of section 1130A of the Social Security Act.
    (d) National Evaluation.--
            (1) In general.--The Secretary shall evaluate the 
        effectiveness of demonstration projects conducted under section 
        1130A of the Social Security Act in achieving the purposes of 
        such section, and in conducting the evaluation, shall use 
        diverse and rigorous methods (and is encouraged to use random 
        assignment) to assess the effectiveness of the projects 
        involved.
            (2) Reports.--
                    (A) Interim report.--Not later than 2 years after 
                the Secretary first approves an application under 
                section 1130A of the Social Security Act, the Secretary 
                shall prepare and submit to the Congress, in writing, 
                an interim report on the results of the evaluations of 
                demonstration projects conducted under such section.
                    (B) Final report.--Not later than 1 year after the 
                end of the last demonstration project conducted under 
                section 1130A of the Social Security Act, the Secretary 
                shall prepare and submit to the Congress, in writing, a 
                final report on the results of the evaluations.
            (3) Funding.--Out of any money in the Treasury of the 
        United States not otherwise appropriated, there are 
        appropriated for fiscal years 2001 through 2004 $6,000,000 to 
        carry out this subsection. Amounts so appropriated shall remain 
        available until expended.

                     TITLE II--WAIVERS MODIFICATION

SEC. 201. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS.

    Section 1130(a) of the Social Security Act (42 U.S.C. 1320a-9(a)) 
is amended by striking paragraph (2) and redesignating paragraphs (3) 
through (5) as paragraphs (2) through (4), respectively.

SEC. 202. CLARIFICATION OF AUTHORITY TO GRANT WAIVERS TO ENABLE 
              STATEWIDE DEMONSTRATION PROJECTS.

    Section 1130(f) of the Social Security Act (42 U.S.C. 1320a-9(f)) 
is amended by adding at the end the following flush sentence:
``The preceding sentence shall not be interpreted to prevent the 
Secretary from granting such waivers as may be necessary to authorize a 
demonstration project under this section to be conducted on a statewide 
basis.''.

SEC. 203. ELIMINATION OF LIMITATION ON NUMBER OF STATES THAT MAY BE 
              GRANTED WAIVERS TO CONDUCT DEMONSTRATION PROJECTS ON SAME 
              TOPIC.

    Section 1130 of the Social Security Act (42 U.S.C. 1320a-9) is 
amended by adding at the end the following:
    ``(h) No Limit on Number of States That May Be Granted Waivers To 
Conduct Same or Similar Demonstration Projects.--The Secretary shall 
not refuse to grant a waiver to a State under this section on the 
grounds that a purpose of the waiver or of the demonstration project 
for which the waiver is necessary would be the same as or similar to a 
purpose of another waiver or project that is or may be conducted under 
this section.''.

SEC. 204. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS THAT MAY BE 
              GRANTED TO A SINGLE STATE FOR DEMONSTRATION PROJECTS.

    Section 1130 of the Social Security Act (42 U.S.C. 1320a-9) is 
further amended by adding at the end the following:
    ``(i) No Limit on Number of Waivers Granted to, or Demonstration 
Projects That May Be Conducted by, a Single State.--The Secretary shall 
not impose any limit on the number of waivers that may be granted to a 
State, or the number of demonstration projects that a State may be 
authorized to conduct, under this section.''.

SEC. 205. CONDITIONAL AUTHORITY TO CONDUCT INDEFINITELY DEMONSTRATION 
              PROJECTS REQUIRING WAIVERS.

    Section 1130(d) of the Social Security Act (42 U.S.C. 1320a-9(d)) 
is amended to read as follows:
    ``(d) Duration of Demonstration.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        demonstration project under this section may be conducted for 
        not more than 5 years.
            ``(2) State option to extend project indefinitely.--If a 
        State has conducted a demonstration project under this section 
        for 5 years and has complied with the agreement under which 
        waivers are provided under subsection (b) with respect to the 
        project, the State may continue to conduct the project and the 
        waivers shall continue to remain in effect, for so long as the 
        State desires such continuance and the compliance continues.''.

SEC. 206. STREAMLINED PROCESS FOR CONSIDERATION OF AMENDMENTS TO 
              DEMONSTRATION PROJECTS REQUIRING WAIVERS.

    Section 1130 of the Social Security Act (42 U.S.C. 1320a-9) is 
further amended by adding at the end the following:
    ``(j) Streamlined Process for Consideration of Amendments.--The 
Secretary shall develop a streamlined process for consideration of 
amendments proposed by States to demonstration projects conducted under 
this section.''.

SEC. 207. PERMISSIBLE USE OF HISTORICAL BASELINES.

    Section 1130(g) of the Social Security Act (42 U.S.C. 1320a-9(g)) 
is amended by adding at the end the following: ``For the purpose of 
making the determination, the Secretary should consider use of 
historical baselines of foster care utilization, designs involving 
random assignment, or designs involving comparison groups.''.

SEC. 208. TECHNICAL CORRECTION.

    Section 1130(b)(1) of the Social Security Act (42 U.S.C. 1320a-
9(b)(1)) is amended by striking ``422(b)(9)'' and inserting 
``422(b)(10)''.
                                 <all>