[Federal Register Volume 61, Number 68 (Monday, April 8, 1996)]
[Notices]
[Pages 15487-15491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8554]



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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 1996

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, 
1996. It includes both those proposals being considered under the 
standard waiver process and those being considered under the 30 day 
process. Federal approval for the proposals has been requested pursuant 
to section 1115 of the Social Security Act. This notice also lists 
proposals that were previously submitted and are still pending a 
decision and projects that have been approved since 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 new proposals under the standard application 
process for at least 30 days after the date of this notice to allow 
time to receive and consider comments. Direct comments as indicated 
below.

ADDRESSES: For specific information or questions on the content of a 
project contact the State contact listed for that project.
    Comments on a proposal or requests for copies of a proposal should 
be addressed to: Howard Rolston, Administration for Children and 
Families, 370 L'Enfant Promenade, S.W., Aerospace Building, 7th Floor 
West, Washington DC 20447. FAX: (202) 205-3598 PHONE: (202) 401-9220.

SUPPLEMENTARY INFORMATION:

I. Background

    Under Section 1115 of the Social Security Act (the Act), the 
Secretary of Health and Human Services (HHS) may approve research and 
demonstration project proposals with a broad range of policy 
objectives.
    In exercising her discretionary authority, the Secretary has 
developed a number of policies and procedures for reviewing proposals. 
On September 27, 1994, we published a notice in the Federal Register 
(59 FR 49249) that specified (1) the principles that we ordinarily will 
consider when approving or disapproving demonstration projects under 
the authority in section 1115(a) of the Act; (2) the procedures we 
expect States to use in involving the public in the development of 
proposed demonstration projects under section 1115; and (3) the 
procedures we ordinarily will follow in reviewing demonstration 
proposals. We are committed to a thorough and expeditious review of 
State requests to conduct such demonstrations.
    On August 16, 1995, the Secretary published a notice in the Federal 
Register (60 FR 42574) exercising her discretion to request proposals 
testing welfare reform strategies in five areas. Since such projects 
can only incorporate provisions included in that announcement, they are 
not subject to

[[Page 15488]]
the Federal notice procedures. The Secretary proposed a 30 day approval 
process for those provisions. As previously noted, this notice lists 
all new or pending welfare reform demonstration proposals under section 
1115. Where possible, we have identified the proposals being considered 
under the 30 day process. However, the Secretary reserves the right to 
exercise her discretion to consider any proposal under the 30 day 
process if it meets the criteria in the five specified areas and the 
State requests it or concurs.

II. Listing of New and Pending Proposals for the Month of March, 1996

    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, 1996.
    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--Work Pays Demonstration Project 
(Amendment).
    Description: Would amend the Work Pays Demonstration Project by 
adding provisions to not increasing AFDC benefits to families for 
additional children conceived while receiving AFDC.
    Date Received: 11/9/94.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Bruce Wagstaff, (916) 657-2367.

    Project Title: California--Assistance Payments Demonstration 
Project/California Work Pays Demonstration Project (Amendment).
    Description: Would amend the Assistance Payments Demonstration 
Project/California Work Pays Demonstration Project by adding provisions 
to California to allow two additional AFDC benefit reductions: (1) 
Reduce the Maximum Aid Payment (MAP) by 4.9 percent across-the-board 
statewide; and (2) divide California counties into two regions based on 
housing costs, and reduce both the Need Standard and the MAP in the 
region with the lower costs. In addition, the State is requesting 
blanket authority for future reductions in AFDC payment levels in 
conjunction with welfare reform state law changes.
    Date Received: 3/13/96.
    Type: AFDC/Medicaid.
    Current Status: New.
    Contact Person: Bruce Wagstaff, (916) 657-2367.

    Project Title: California - Assistance Payments Demonstration 
Project/California Work Pays Demonstration Project (Amendment).
    Description: Would amend the Assistance Payments Demonstration 
Project/California Work Pays Demonstration Project by adding provisions 
to allow one additional provision: income of a senior parent living in 
the same household with a minor parent with a dependent child will not 
be deemed to the minor parent's child.
    Date Received: 3/13/96.
    Type: AFDC.
    Current Status: New.
    Contact Person: Bruce Wagstaff, (916) 657-2367.

    Project Title: Florida--Family Responsibility Act.
    Description: Statewide, would require dependent children and 
caretaker relatives under age 18 to remain in school; pay half the AFDC 
benefit increment for the first child conceived by an AFDC recipient 
and provide no cash benefits for a second or subsequent child; exclude 
from the AFDC budget child support payments for children subject to the 
family cap; require AFDC recipients not participating in JOBS or 
actively seeking employment to engage in 20 hours per week of community 
employment or work experience.
    Date Received: 10/4/95.
    Type: Combined AFDC/Medicaid.
    Current Status: Pending.
    Contact Person: Sallie P. Linton, (904) 921-5572.

    Project Title: Georgia--Jobs First Project.
    Description: In ten pilot counties, would replace AFDC payment with 
paid employment; extend transitional Medicaid to 24 months; eliminate 
100 hour employment rule for eligibility determination in AFDC-UP 
cases.
    Date Received: 7/5/94.
    Type: AFDC.
    Current Status: Pending (not previously published).
    Contact Person: Nancy Meszaros, (404) 657-3608.

    Project Title: Hawaii--Families Are Better Together.
    Description: Statewide, would eliminate 100-hour, attachment to the 
work force, 30 day unemployment and principal wage earner criteria for 
AFDC-UP families.
    Date Received: 5/22/95.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Patricia Murakami, (808) 586-5230.

    Project Title: Illinois--Six Month Paternity Establishment 
Demonstration.
    Description: In 20 counties, would require the establishment of 
paternity, unless good cause exists, within 6 months of application or 
redetermination as a condition of AFDC and Medicaid eligibility for 
both mother and child; would deny Medicaid to children age 7 and under, 
exclude children from filing rules, and exempt Department from making 
protective payments to eligible children, when custodial parent has not 
cooperated in establishing paternity; delegate the establishment of 
paternity in uncontested cases to caseworkers who perform assistance 
payment or social service functions under title IV-A or XX.
    Date Received: 7/18/95.
    Title: AFDC/Medicaid.
    Current Status: Pending.
    Contact Person: Karan D. Maxson, (217) 785-3300.

    Project Title: Indiana--Impacting Families Welfare Reform 
Demonstration--Amendments.
    Description: Statewide, proposes expansions and amendments to 
current demonstration to impose a lifetime 24-month limit on cash 
assistance and categorical Medicaid eligibility (12 months for resident 
alien); allow 1 month AFDC credit (to a maximum of 24 at any one time) 
for each 6 consecutive months full-time employment; count each month of 
AFDC receipt from another state within the previous 3 years as 1 month 
against the lifetime limit; restrict permissible ``specified 
relatives'' for AFDC children and minor parents; extend AFDC, Medicaid, 
and food stamp fraud disqualification penalties; establish 3 unexcused 
absences per year as the statewide definition of unacceptable school 
attendance; provide a voucher equal to 50% of assistance amount for 
family cap child for goods and services related to child care; divert 
AFDC grants to subsidize child care costs; establish an option for an 
employed AFDC recipient to receive guaranteed child care or an AFDC 
payment equal to the family's benefit before employment; require a 
child's mother to establish paternity as a condition of eligibility for 
the child and the caretaker; establish additional conditions of 
eligibility for AFDC; impose penalties for illegal drug

[[Page 15489]]
use; base CWEP hours on the combined value of AFDC and Medicaid 
assistance; make JOBS volunteers subject to the same sanctions as 
mandatory participants; continue eligibility for AFDC recipients until 
countable income reaches 100% of the federal poverty guidelines; expand 
voluntary quit definition and penalties; impose income limits on 
transitional Medicaid and child care and limit each to 12 months in a 
person's lifetime; with some exceptions, deny Medicaid under all 
coverage provisions to those determined ineligible as a result of AFDC 
welfare reform provisions; restrict Medicaid payments made to employees 
with employer's health care benefits to the lesser of the employee's 
insurance premium or the amount the state would otherwise pay; and 
require minor parents to live with a legally responsible adult and 
count the income and resources of non-parent adults.
    Additional provisions: Food Stamp recipients could be required to 
participate CWEP and job search; increase AFDC and Food Stamp penalties 
for non-compliance with CWEP and job search; require cooperation with 
child support as condition of eligibility for Food Stamps.
    Date Received: 12/14/95; Amendment received 2/6/96.
    Type: Combined AFDC/Medicaid.
    Current Status: Pending.
    Contact Person: James H. Hmurovich, (317) 232-4704.

    Project Title: Iowa--Family Investment Plan (Amendments).
    Description: Statewide, would amend the current Family Investment 
Plan Demonstration, changing the current JOBS exemption from parents 
with children younger than 6 months old to younger than 3 months old; 
for applicants who received AFDC in another state at any time during 
the 12 calendar months prior to application in Iowa, calculating 
benefits for 6 months using the prior state's need standard if its 
benefit level is lower than Iowa's; requiring minor parents to live 
with an adult parent or legal guardian; requiring parents age 19 and 
younger to attend parenting classes; requiring minor parents to 
participate in high school completion activities; disregarding earned 
income of full time students age 19 and younger; adopting the Section 
416 Optional AFDC Fraud Control Program; and offering information to 
parents regarding family planning and the financial implications of 
having additional children.
    Date Received: 2/9/96.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Ann Weibers, (515) 281-7714.
    Project Title: Kansas--Actively Creating Tomorrow for Families 
Demonstration.
    Description: Would, after 30 months of participation in JOBS, make 
adults ineligible for AFDC for 3 years; replace $30 and 1/3 income 
disregard with continuous 40% disregard; disregard lump sum income and 
income and resources of children in school; count income and resources 
of family members who receive SSI; exempt one vehicle without regard 
for equity value if used to produce income; allow only half AFDC 
benefit increase for births of a second child to families where the 
parent is not working and eliminate increase for the birth of any child 
if families already have at least two children; eliminate 100-hour rule 
and work history requirements for UP cases; expand AFDC eligibility to 
pregnant women in 1st and 2nd trimesters; extend Medicaid transitional 
benefits to 24 months; eliminate various JOBS requirements, including 
those related to target groups, participation rate of UP cases and the 
20-hour work requirement limit for parents with children under 6; 
require school attendance; require minors in AFDC and NPA Food Stamps 
cases to live with a guardian; make work requirements and penalties in 
the AFDC and Food Stamp programs more uniform; and increase sanctions 
for not cooperating with child support enforcement activities.
    Date Received: 7/26/94.
    Type: Combined AFDC/Medicaid.
    Current Status: Pending.
    Contact Person: Faith Spencer, (913) 296-0775.

    Project Title: Maine--Welfare to Work Program.
    Description: Statewide, would require caretaker relatives to sign a 
family contract; require participation in parenting classes and health 
care services; provide one-time vendor payments in lieu of AFDC for the 
purpose of obtaining/retaining employment; provide voucher payments to 
both married and unmarried minor parents; limit JOBS exemptions; expand 
eligibility for Transitional Medicaid and Child Care and replace 
sliding-scale fees with flat-rate fees; reduce Transitional Medicaid 
reporting requirements; disregard entire value of one vehicle; and 
apply any federal savings to the JOBS program services. In selected 
sites, implement ASPIRE-Plus, a subsidized employment program, would 
cash out food stamps, divert AFDC benefits and pass through all child 
support collected to families who participate in ASPIRE-Plus.
    Date Received: 9/20/95.
    Type: AFDC/Medicaid.
    Current Status: Pending.
    Contact Person: Susan Dustin, (207) 287-3104.

    Project Title: Minnesota Family Investment Program (MFIP) 
(Amendment).
    Description: Would amend MFIP by adding Ramsey County as an MFIP 
site. MFIP provisions include: A consolidation of AFDC, Food Stamps, 
and the State's Family General Assistance program into one cash grant, 
with a single set of rules and procedures; eligibility based on net 
income only; an asset limit of $2,000, with an exemption for vehicles 
with a combined equity value of up to $4,500; elimination of the 100-
hour and work history rules for two-parent families; a benefit equal to 
the maximum grant increased by 20 percent, minus net income (net income 
excludes 38 percent of gross earnings), but benefits may not exceed the 
maximum grant level, which equals the combined value of AFDC and Food 
Stamps; child care is paid directly to the child care provider, up to 
the county maximum rate; a 10 percent grant reduction for non-compliant 
parents; mandatory participation in MFIP employment and training 
services for non-exempt, long-term recipients. MFIP operates in seven 
counties and the amendment would add Ramsey County.
    Date Received: 3/29/96.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Chuck Johnson (612) 297-4727.

    Project Title: New Hampshire--Earned Income Disregard Demonstration 
Project.
    Description: AFDC applicants and recipients would have the first 
$200 plus 1/2 the remaining earned income disregarded.
    Date Received: 9/20/93.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Avis L. Crane, (603) 271-4255.

    Project Title: New Hampshire--New Hampshire Employment Program and 
Family Assistance Program.
    Description: Statewide, would replace AFDC with Employment Program 
administered by both Employment Security Agency and Family Assistance 
Program; require job search and other employment-related activities for 
first 26 weeks of receipt followed by work-related activities for 26 
weeks; eliminate JOBS target group funding requirement and change JOBS 
reporting requirements; require recipients attending post-secondary or 
part-time

[[Page 15490]]
vocational training to participate in work-related activities; 
eliminate JOBS services priority for volunteers; establish limits for 
provision of transportation and other JOBS services based on activity 
and local conditions; eliminate remoteness as exemption from JOBS; 
require non-custodial parents to participate in JOBS; increase earned 
income disregard to 50%; eliminate AFDC-UP eligibility requirements; 
allow transitional case management for up to one year; raise resource 
limit to $2,000 and exclude one vehicle and life insurance policies; 
pass through child support directly to family; take SSI income into 
account in determining eligibility/payment; eliminate conciliation and 
apply JOBS sanction of 50% of AFDC benefits for three months followed 
by no payment for three months, allowing option to increase initial 
sanction up to 100%; exempt pregnant women from JOBS only during third 
trimester; for minor parents cases, include in assistance unit any 
parent or sibling living in the home; eliminate gross income test; 
disregard educational grants; allow emergency assistance for families 
with employment-related barriers; allow State to eliminate the 
certificate option for child care and development block grant funds and 
use of these funds for capital improvement; eliminate ceiling on At 
Risk Child Care funds; provide that FFP for AFDC not be reduced during 
life of demonstration; fund computer system modifications at 80% FFP; 
require pregnant recipients to cooperate with child support; require 
that AFDC apply for Medicaid as a unit and not individually; eliminate 
requirement of receipt of AFDC for 3 of last 6 months in order to 
receive transitional Medicaid; and allow State to require that some 
individuals be assigned to a managed care program; substitute outcome 
measures for JOBS participation rates; change participation 
requirements for parents with children under 6, UP recipients and 
minors; establish a medical deduction; increase the sanction for non-
cooperation with child support; exempt individuals with significant 
employment barriers from JOBS; treat lump sum income and all real 
property, except a home, as a resource; and use 20% of gross earned 
income as a Medicaid disregard. Also contains various Food Stamp 
waivers.
    Date Received: 9/18/95.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Marianne Broshek, (603) 271-4442.

    Project Title: New Hampshire--New Hampshire Employment Program. 
Description: In three pilot sites, would require work after 6 months of 
AFDC receipt; eliminate the exemption from JOBS for women in the second 
trimester of pregnancy; eliminate the JOBS exemption for caretaker of a 
child under 3 but not less than 1 year of age; replace the earned 
income disregard of $90 and $30 and 1/3 with a 50% disregard which is 
not time-limited; raise the resource limit for recipients to $2,000; 
disregard full value of one vehicle per adult for applicants and 
recipients; apply a full family sanction voluntarily quitting a job or 
refusing to accept a job; apply a sanction of reducing the payment 
standard by 30% for one month for failure to comply with JOBS in the 
first instance, by 60% in the second instance for one month, and in the 
third instance apply a full-family sanction for three months or until 
compliance; and require non-custodial parents to participate in JOBS.
    Date Received: 10/6/95.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Marianne Broshek, (603) 271-4442.

    Project Title: Oklahoma--Welfare Self-Sufficiency Initiative.
    Description: In four pilots conducted in five counties each, would 
1) extend transitional child care to up to 24 months; 2) require that 
all children through age 18 be immunized and require that responsible 
adults with preschool age children participate in parent education or 
enroll the children in Head Start or other preschool program; 3) not 
increase AFDC benefits after birth of additional children, but provide 
voucher payment for the increment of cash benefits that would have been 
received until the child is two years old; and 4) pay lesser of AFDC 
benefit or previous state of residence or Oklahoma's for 12 months for 
new residents.
    Date Received: 10/27/95.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Raymond Haddock, (405) 521-3076.

    Project Title: Pennsylvania--School Attendance Improvement Program.
    Description: In 7 sites, would require school attendance as 
condition of eligibility.
    Date Received: 9/12/94.
    Type: AFDC.
    Current Status: Pending
    Contact Person: Patricia H. O'Neal, (717) 787-4081.

    Project Title: Pennsylvania--Savings for Education Program.
    Description: Statewide, would exempt as resources college savings 
bonds and funds in savings accounts earmarked for vocational or 
secondary education and disregard interest income earned from such 
accounts.
    Date Received: 12/29/94.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Patricia H. O'Neal, (717) 787-4081.

    Project Title: South Carolina--Family Independence Program.
    Description: Statewide, would, with exceptions, time limit AFDC 
benefits to families with able bodied adults to 24 months out of 120 
months, not to exceed 60 months in a lifetime; eliminate increase in 
AFDC benefit resulting from birth of children 10 or more months after 
the family begins AFDC receipt, but provide benefits to such children 
in the form of vouchers for goods and services permitting child's 
mother to participate in education, training, and employment-related 
activities; eliminate deprivation requirements, principal earner 
provisions, work history requirements, and 100-hour rule for AFDC-UP; 
increase AFDC resource limit to $2,500 and disregard as resources one 
vehicle with a market value up to $10,000, the balance in an Individual 
Development Account (IDA) up to $10,000, and the cash value of life 
insurance; disregard from income up to $10,000 in lump sum payments 
deposited in an IDA within 30 days of receipt, earned income of 
children attending school, and interest and dividend income up to $400; 
require participation in a family skills training program; require 
certain AFDC recipients to submit to random drug tests and/or 
participate in alcohol or drug treatment; require children to attend 
school; increase amount of child support passed through to AFDC 
recipients; require more extensive information for child support 
enforcement purposes; modify JOBS exemptions and good cause criteria, 
and increase sanctions for non-compliance; make job search a condition 
of eligibility; allow non-custodial parents of AFDC children to 
participate in JOBS; pay transitional grant equaling 3 percent of the 
maximum family grant following employment; and provide transitional 
grant Medicaid and child care for 12 months from the date of employment 
for cases previously closed due to time limit.
    Date Received: 6/12/95.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Linda Martin (804) 737-6010.

    Project Title: Utah--Single-Parent Employment Demonstration 
(Amendments).

[[Page 15491]]

    Description: Would amend the current Single Parent Employment 
Demonstration (SPED), requiring preschool children to be immunized and 
other children to attend school; considering as a single filing unit 
each family with a child in common, including all children in the 
household related to either parent; permitting parents removed from the 
grant due to non-cooperation or fraud to remain eligible for JOBS 
services, including support services; and allowing a ``best estimate'' 
of earnings in lieu of actual earnings so long as estimate is within 
$100 of actual earnings. These amendments would initially be limited to 
the Kearns office and later expanded to other SPED sites.
    Date Received: 2/7/96.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Bill Biggs, (801) 538-4337.

III. Listing of Approved Proposals Since March 1, 1995

    Project Title: North Carolina--Cabarrus County Work Over Welfare 
Demonstration Project.
    Contact Person: Kevin Fitzgerald, (919) 733-3055.

    Project Title: Ohio--Ohio First.
    Contact Person: Joel Rabb, (614) 466-3196.
    Project Title: Oregon--Oregon Option.*
    Contact Person: Jim Neely, (503) 945-5607.
    * The provisions of two previously pending proposals, the Expansion 
of the Transitional Child Care Program and the Increased AFDC Motor 
Vehicle Limit, were consolidated into the approval of Oregon Option.

    Project Title: Texas--Achieving Change for Texans.
    Contact Person: Kent Gummerman, (512) 438-3743.

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 1, 1996.
Karl Koerper,
Director, Division of Economic Independence, Office of Planning, 
Research and Evaluation.
[FR Doc. 96-8554 Filed 4-5-96; 8:45 am]
BILLING CODE 4184-01-P