Expedited reemployment demonstration projects

Title III of the Social Security Act (42 U.S.C. 501 and following) is amended by adding at the end the following:

305.

Demonstration projects

(a)The Secretary of Labor may enter into agreements, with States submitting an application described in subsection (b), for the purpose of allowing such States to conduct demonstration projects to test and evaluate measures designed— (1)to expedite, such as through the use of a wage insurance program, the reemployment of individuals who establish initial eligibility for unemployment compensation under the State law of such State; or (2)to improve the effectiveness of such State in carrying out its State law. (b)The Governor of any State desiring to conduct a demonstration project under this section shall submit an application to the Secretary of Labor at such time, in such manner, and including such information as the Secretary of Labor may require. Any such application shall, at a minimum, include— (1)a general description of the proposed demonstration project, including the authority (under the laws of the State) for the measures to be tested, as well as the period of time during which such demonstration project would be conducted; (2)if a waiver under subsection (c) is requested, the specific aspects of the project to which the waiver would apply and the reasons why such waiver is needed; (3)a description of the goals and the expected programmatic outcomes of the demonstration project, including how the project would contribute to the objective described in subsection (a)(1), subsection (a)(2), or both; (4)assurances (accompanied by supporting analysis) that the demonstration project would not result in any increased net costs to the State’s account in the Unemployment Trust Fund; (5)a description of the manner in which the State— (A)will conduct an impact evaluation, using a control or comparison group or other valid methodology, of the demonstration project; and (B)will determine the extent to which the goals and outcomes described in paragraph (3) were achieved; and (6)assurances that the State will provide any reports relating to the demonstration project, after its approval, as the Secretary of Labor may require. (c)The Secretary of Labor may waive any of the requirements of section 3304(a)(4) of the Internal Revenue Code of 1986 or of paragraph (1) or (5) of section 303(a), to the extent and for the period the Secretary of Labor considers necessary to enable the State to carry out a demonstration project under this section. (d)A demonstration project under this section— (1)may be commenced any time after September 30, 2007; and (2)may not, under subsection (b), be approved for a period of time greater than 2 years, subject to extension upon request of the Governor of the State involved for such additional period as the Secretary of Labor may agree to, except that in no event may a demonstration project under this section be conducted after the end of the 5-year period beginning on the date of the enactment of this section. (e)The Secretary of Labor shall, in the case of any State for which an application is submitted under subsection (b)— (1)notify the State as to whether such application has been approved or denied within 90 days after receipt of a complete application, and (2)provide public notice of the decision within 10 days after providing notification to the State in accordance with paragraph (1).

Public notice under paragraph (2) may be provided through the Internet or other appropriate means. Any application under this section that has not been approved within such 90 days shall be treated as denied.

(f)The Secretary of Labor may terminate a demonstration project under this section if the Secretary determines that the State has not complied with the terms and conditions of the project.