[Federal Register Volume 61, Number 112 (Monday, June 10, 1996)]
[Notices]
[Pages 29398-29404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14557]



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[[Page 29399]]


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: May 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 May, 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 May 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, SW., Aerospace Building, 7th Floor 
West, Washington DC 20447. FAX: (202) 205-3598; PHONE: (202) 401-9220.

SUPPLEMENTARY INFORMATION:

I. Background

    Under Section 1115 of the Social Security Act (the Act), the 
Secretary of Health and Human Services (HHS) may approve research and 
demonstration project proposals with a broad range of policy 
objectives.
    In exercising her discretionary authority, the Secretary has 
developed a number of policies and procedures for reviewing proposals. 
On September 27, 1994, we published a notice in the Federal Register 
(59 FR 49249) that specified (1) The principles that we ordinarily will 
consider when approving or disapproving demonstration projects under 
the authority in section 1115(a) of the Act; (2) the procedures we 
expect States to use in involving the public in the development of 
proposed demonstration projects under section 1115; and (3) the 
procedures we ordinarily will follow in reviewing demonstration 
proposals. We are committed to a thorough and expeditious review of 
State requests to conduct such demonstrations.
    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 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 May, 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 May, 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: 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 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: Pending.
    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

[[Page 29400]]

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--Pursuit Of New Opportunities (PONO).
    Description: Would limit benefits to 60 months in a lifetime for 
all households except those exempt from work requirements; for all non-
exempt households, progressively reduce the grant amount, by 20% after 
2 months, then in annual stages to 50% in the fifth year of 
eligibility; exclude the income of dependent, minor student recipients 
from the 185% Gross Income Test; require all non-high school graduate 
or non-GED certified minor parent heads of households to participate in 
educational activities; use a Benefit Reduction Rate formula to allow 
participants to offset progressive grant reductions by keeping a larger 
portion of any earned income; eliminate all of AFDC-UP categorical 
requirements; strengthen JOBS participation requirements by eliminating 
certain exemptions such as, remoteness due to excessive travel time, 
current work activity, the non-principal earner in a two parent 
household, or full-time VISTA participants, etc.; allow families to 
retain up to $5,000 in resources; disregard one motor vehicle, 
regardless of equity value, needed for self-sufficiency purposes; 
delete the $50 child support pass-through; disregard all student loans, 
grants and scholarships as income.
    Date Received: 05/07/96.
    Type: AFDC.
    Current Status: New (replaces previous pending application).
    Contact Person: Kristine Foster, (808) 586-5729.

    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.
    Type: 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 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: Kansas--Actively Creating Tomorrow for Families 
Demonstration.
    Description: Amended pending demonstration to provide that the 
demonstration would: replace $30 and \1/3\ income disregard with 
continuous 40% disregard; disregard lump sum income, income and 
resources of children in school and interest income; count income and 
resources of adults, and at State option children, who receive SSI; 
exempt one vehicle without regard for equity value; eliminate 100-hour 
rule and work history requirements for UP cases; expand AFDC 
eligibility to pregnant women in 1st and 2nd trimesters; eliminate 
eight week job search limitation; allow alcohol and drug screening and 
treatment as a JOBS activity; eliminate the 20-hour work requirement 
limit for parents with children under 6; delay the effective date of 
changes in household composition; make work requirements in the AFDC 
and Food Stamp programs more uniform; and increase sanctions for not 
cooperating with child support enforcement activities and violations of 
employment and JOBS requirements.
    Date Received: 7/26/94; amendment received 4/30/96.
    Type: Combined AFDC/Medicaid.
    Current Status: Pending.
    Contact Person: Diane Dystra, (913) 296-3028.

    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

[[Page 29401]]

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: Maryland.
    Description: Statewide, would expand, with some modifications, 
previously approved Family Investment Program (FIP) pilot county 
provisions to be statewide and introduce new provisions: replace the 
current $90 and $30-and-one-third exclusions with a flat 20% earned 
income deduction, 50% for self-employed earned income; limit the child 
care disregard to $175 in all cases; allow case managers to set AFDC 
certification periods up to 1 year and require eligibility to be re-
established before the end of each certification period; modify JOBS 
exemption requirements; allow $2,000 in countable resources and exclude 
one vehicle per household, life insurance, and certain real property; 
count stepparent income only if it is more than 50% of the poverty 
level; allow non-custodial parents and stepparents to participate in 
JOBS; provide welfare avoidance grants of up to 3 months benefit amount 
(up to 12 months in special circumstances); allow IV-A child care funds 
in lieu of AFDC for families diverted from cash assistance; impose 
immediate full-family sanctions for fraud and for failure to cooperate 
with JOBS or child support enforcement requirements; reduce the adverse 
notification period to 5 days; eliminate the $50 child support pass-
through; allow only 1 assistance unit per family or payee; eliminate 
deprivation as an eligibility factor; change treatment of lump sums; 
eliminate JOBS assessment and employability plans; and modify JOBS 
program requirements.
    Date Received: 4/26/96.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Kathy Cook, (410) 767-7055.

    Project Title: Michigan--To Strengthen Michigan Families 
Demonstration Project (Amendment).
    Description: Statewide, would require minor parents to live with 
their parent or other suitable adult; and require minor parents who 
have not graduated from high school to attend school as a condition of 
family eligibility.
    Date received: 4/26/96.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Dan Cleary, (517) 335-0015.

    Project Title: Minnesota--Work First Program.
    Description: In pilot counties, would provide vendor payments in 
lieu of regular AFDC benefits for applicants' rent and utilities for up 
to six months; sanction for at least six months job-ready applicants 
who fail to comply with job search and other applicants who fail to 
participate in JOBS orientation; and require part-time CWEP of 
unemployed, nonexempt job-ready individuals who fail to participate in 
job search for 32 hours/week or who after eight weeks of job search are 
not employed for at least 32 hours/week or not self-employed with a net 
income equal to the family's AFDC benefit. Individuals who refuse to 
participate in CWEP or are terminated from a CWEP job would incur a 
whole family sanction and become ineligible for AFDC for at least six 
months. Non-job-ready participants would be assigned appropriate 
education and training. Post-placement services would be provided for 
up to 180 days and Transitional Child Care and Medicaid without regard 
to AFDC receipt in 3 of the 6 months preceding ineligibility.
    Date Received: 4/4/96.
    Type: AFDC/Medicaid.
    Current Status: Pending.
    Contact Person: Gus Avenido, (612) 296-1884.

    Project Title: Minnesota--AFDC Barrier Removal Project.
    Description: Statewide, would expand AFDC-UP eligibility; treat 
minor parents living with a caretaker parent on AFDC as a separate 
filing unit and disregard the caretaker parents' earned income up to 
200 percent of the federal poverty guideline; disregard earned income 
of dependent children who are at least half-time students as well as 
all their savings deposited into an individual development account; 
increase the auto-equity limit to $4,500; cease recovering overpayments 
(once every two years per case) due to an individual's new employment 
resulting in ineligibility; and determine AFDC benefit amount for a 
family in which all members have resided in the State for less than 12 
months based on the payment standard of the state of immediate prior 
residence if less than Minnesota's.
    Minnesota has amended this application to include a proposed 
provision in which families who have resided in the State of Minnesota 
for less than 30 days would not be eligible for AFDC with the following 
exceptions: (1) Either the child or caretaker relative was born in 
Minnesota; (2) either the child or caretaker relative has resided in 
the State for 365 consecutive days in the past; (3) either the child or 
the caretaker relative went to Minnesota to join a close relative who 
has resided in the State for at least one year; or (4) the caretaker 
relative went to Minnesota to accept a bona fide offer of employment 
for which he or she was eligible. For purposes of the exemption close 
relative is defined as a parent, grandparent, brother, sister, spouse, 
or child. The State would allow county agencies to waive the 30 day 
requirement in cases of emergency or where unusual hardship would 
result from denial of benefits.
    Date Received: 4/4/96; amendment received 5/28/96.
    Type: AFDC.
    Current Status: New (Amendment only).
    Contact Person: Ann Sessoms, (612) 296-0978.

    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 vocational training to participate in work-related 
activities; eliminate JOBS services priority for volunteers; establish 
limits for provision of transportation and other JOBS services

[[Page 29402]]

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 States 
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 States 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: New York--Learnfare Program.
    Description: Would phase in statewide a provision that would 
require AFDC children in grades 1 through 6 to attend school regularly 
by mandating a sanction of removal of the child's needs from the budget 
group for three months in those cases, where after counseling, the 
child has 5 or more unexcused absences in a quarter. Benefits for 
parents will be terminated, for failure without good cause, to sign the 
release form for educational records.
    Date Received: 5/31/96.
    Type: AFDC.
    Current Status: New.
    Contact Person: Jeff Gaskell, (518) 486-3415.

    Project Title: New York--Intentional Program Violation 
Demonstration.
    Description: Statewide would change the sanction for Intentional 
Program Violations making the period of ineligibility of the person 
committing the violation dependant on both the number of offenses and 
the amount of the overpayment incurred as a result of the violation.
    Date Received: 5/31/96.
    Type: AFDC.
    Current Status: New.
    Contact Person: Jeff Gaskell, (518) 486-3415.

    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 Recevied: 12/29/94.
    Type: AFDC.
    Current Status: Pending.
    Contact Person: Patricia H. O'Neal, (717) 787-4081.

    Project Title: Tennessee--Families First.
    Description: Description: Statewide, would impose 18 month time 
limit with 60 month lifetime limit on cash assistance for non-exempt 
families (extensions available under certain circumstances); require 
full-time (40 hours) work or combination of work and other activities 
such as education, training, or job search, unless exempt; eliminate 
many JOBS exemptions including lowering youngest-child exemption to 
those with a child less than 16 weeks of age; remove limits on periods 
of job search; impose a family cap with no increase in benefits for 
additional children; require unmarried teen parents without high school 
diploma or GED to participate in education or other approved activity; 
deny AFDC for three months if recipients voluntarily quit job or if 
applicant voluntarily quits employment within two months of AFDC 
application; impose whole family sanction for noncompliance with 
employment, training or work preparation activities; impose sanctions 
without a prior conciliation period; provide transitional child care 
and

[[Page 29403]]

transitional Medicaid for 18 months and without regard to months of 
AFDC receipt; change earned income disregards; eliminate the 100-hour 
rule, work history and quarters of work requirements when AFDC 
recipient marries and disregard new stepparent's income up to set 
limit; hold harmless child support arrearages owed by the new husband/
wife to his/her child in the new family unit as long as the parent 
continues to reside in the home; require that applicants and recipients 
sign Personal Responsibility Plan as condition of eligibility and 
assure that children attend school, receive regular immunizations and 
health checks, and the caretaker cooperates with child support 
enforcement; impose significant sanction for failure of children to 
attend school or obtain immunizations; impose whole family sanction for 
failure to cooperate with child support enforcement; deny AFDC for 10 
years for those convicted of fraudulently receiving benefits from two 
states simultaneously; allow low-income entrepreneurs to establish 
special accounts up to $5,000; conform AFDC and Food Stamp rules by 
increasing resource limit to $2,000 and counting lump sum income as a 
resource in the month received and after, if retained; and increase 
auto limit to $4,600. In 12 counties allow individual development 
accounts up to $5,000 and in 1 county operate a Responsible Fatherhood 
Demonstration Pilot using IV-D funds.
    Date Received: 5/1/96.
    Type: Combined AFDC/Medicaid.
    Current Status: Pending.
    Contact Person: Glenda Shearon, (615) 313-5652.

    Project Title: Utah--Single-Parent Employment Demonstration 
(Amendments).
    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.
    Project Title: Virginia--Virginia Independence Program (Amendment).
    Description: Would amend the Virginia Independence Program to 
require AFDC applicants and recipients (including specified relatives 
other than a parent) to provide information sufficient to identify the 
non-custodial parent. Failure to provide the required information would 
result in sanctions. In any case where an applicant/recipient does not 
claim good cause or good cause does not exist, an affidavit from the 
custodial parent attesting to the lack of information about the non-
custodial parent/putative father, in and of itself, would not meet the 
definition of cooperation. If the first two genetic tests exclude the 
named putative fathers, the State will impose a sanction until 
paternity is established. If a relative other than the parent maintains 
that he does not know the identity of the child's parent and has no way 
to help identify the parent, the sanction would not be imposed.
    Date Received: 5/24/96.
    Type: AFDC.
    Current Status: Pending (amended provisions not previously 
published).
    Contact Person: Barbara Cotter, (804) 692-1811.
    Project Title: Wisconsin--Work Not Welfare and Pay for Performance 
Projects (Amendments).
    Description: Statewide, would lower the JOBS exemption from a 
parent whose youngest child is one year old or younger to a parent 
whose youngest child is 12 weeks old or younger; require up to 40 hours 
a week in CWEP regardless of the amount of the family's AFDC grant and 
require participation in substance abuse and mental health treatment, 
as appropriate; include intentional failure or voluntary quit in a work 
component as a failure to cooperate with JOBS and apply JOBS program 
sanctions to the entire family; and limit AFDC receipt to 60 months in 
a lifetime, with exemptions and case-by-case extensions. The state 
would extend child care to families earning up to 165 percent of 
poverty with graduated co-payments based on the cost of care, and 
change IV-A cases headed by a non-needy non-legally responsible 
relative to IV-E cases and provide cases headed by an adult SSI 
recipient a special child-only grant supplement in lieu of the regular 
AFDC payment for the child. Both types of cases would be exempt from 
the time limit and work requirements. Further, the state would require 
minor parents to live with a parent or in an adult-supervised setting. 
Also the state would establish a competitive process for selection of 
contractors to administer county programs.
    Date Received: 5/8/96; Amendments received 5/17/96.
    Type: AFDC.
    Current Status: New.
    Contact Person: Jean Sheil, (608) 266-0613.
    Project Title: Wisconsin--Wisconsin Works (W2).
    Description: Statewide, would establish performance standards for 
the administration of Wisconsin Works (W2) along with a competitive 
process for selection of contractors to administer county programs. The 
State would provide--but not guarantee--work positions, child care and 
health care coverage to families (as defined by the State), whose gross 
income does not exceed 115 percent of the federal poverty level (FPL), 
whose resources do not exceed $2,500 (excluding a homestead), and whose 
total auto equity assets do not exceed $10,000, with a 60-day State 
residency requirement for eligibility. The State would count all earned 
and unearned income, including child support (which will be paid 
directly to the custodial parent), except for EITC when determining W2 
eligibility. The State would require participation in substance abuse 
and mental health treatment, as appropriate; exempt from a work 
requirement parents with a child less than 12 weeks old; and provide 
for an appeal process for W2 eligibility and benefit decisions. The 
State would review an individual W2 agency's financial eligibility 
decision only if the applicant petitions the State within 15 days of 
the decision and would not pay benefits pending a decision. Applicants 
would be required to search for unsubsidized employment during 
eligibility determination, and would be denied eligibility if they 
refused a bona fide offer of employment in the 180 days prior to 
application. The State would automatically refer all W2 participants to 
child support for services. The State would require minor parents to 
live with a parent or in an adult-supervised setting to receive W2 non-
employment/non-cash benefits, e.g., financial planning assistance, case 
management; but minor parents would not be eligible for W2 employment/
cash benefits. Teen children must attend school regularly. The state 
would provide children whose parents are SSI recipients a payment of 
$77.
    The W2 payment amount would be determined according to job 
placement: unsubsidized job, trial job (including up to $300 per month 
wage subsidy to employer), community service job (benefit of $555 per 
month), and

[[Page 29404]]

transitional placement (benefit of $518 per month). Community service 
Jobs would require 30 hours per week of work plus 10 hours per week of 
education and training; transitional placement jobs would require 28 
hours per week of work plus 12 hours of education and training. In 
addition CWEP participation would be increased up to 40 hours per week. 
The State would sanction individuals $4.25 per each hour of non-
participation in work requirements. In addition sanctions would be 
imposed upon the entire family for refusal to participate, without good 
cause, in a W2 employment position. Three refusals to participate in 
any W2 employment category would result in permanent ineligibility for 
that category. To assist families with one-time expenses, the State 
would provide Job Access Loans for employment support needs, e.g., car 
repair, uniforms, etc; and would extend child care to families earning 
up to 165 percent of poverty with graduated co-payments based on family 
income and the category of care used. Child care would only be provided 
to children under 13.
    The State would limit participation to 24 months in any one W2 
employment position and would limit lifetime eligibility for benefits 
to 60 months, with extensions on a case-by-case basis; the 60-month 
limit would apply to certain JOBS participants beginning July 1, 1996. 
The State would change AFDC cases headed by a non-legally responsible 
relative to a IV-E case; provide job search assistance and case 
management to non-custodial parents with a child support order; impose 
stricter sanctions for non-cooperation with child support; and 
permanently deny W2 employment after three Intentional Program 
Violations. Benefit overpayments will be recouped for intentional 
violations at a rate set by the State. Corrective payments would not be 
made for underpayments. Eligibility for Emergency Assistance for 
certain homeless persons would be limited to once in a 36-month period 
unless the homelessness was caused by domestic abuse, and the State 
would allow displacement of regular employees by W2 participants in 
certain cases: i.e., partial displacement (reduction in hours); 
impairment of existing contracts; infringement upon promotional 
opportunities; and filling of any established unfilled position.
    The State would eliminate transitional Medicaid and expand Medicaid 
(i.e., the W2 Health Plan) to families with gross income up to 165 of 
FPL, who would then remain eligible until their income increases to 200 
percent of FPL; and would incorporate a mandatory HMO enrollment or 
primary provider program for W2 participants. Participants would be 
required to pay a share of W2 Health Plan premiums according to a 
sliding scale, and the State would impose stricter Medicaid sanctions 
for non-cooperation with child support. The State would merge the Food 
Stamps E&T program with the W2 Work Program; modify the Food Stamps 
work program exemptions; eliminate the Food Stamps gross income test; 
require nutrition education for Food Stamps recipients; and cash out 
food stamps.
    Date Received: 5/29/96.
    Type: Combined AFDC/Medicaid.
    Current Status: New.
    Contact Person: Jean Sheil, (608) 266-0613.

    Project Title: Wyoming--New Opportunities and New 
Responsibilities--Phase II (Amendments).
    Description: Proposes expansion of original demonstration statewide 
and amendments to the current demonstration to establish a 5-year 
lifetime limit on cash assistance for adults, beginning with time on 
AFDC from July 1, 1987 (with limited exemptions and extensions); 
require school attendance for teen parents who do not have a high 
school education or its equivalent; pursue child support from the 
absent minor parent's parents; freeze benefits based on household size 
10 months after initial qualification; replace existing earnings 
disregards for recipients (except no disregard will apply for 
recipients disqualified due to fraud, education time limits, illegal 
alien) with a maximum earned income disregard of $200 for recipients; 
expand pay-for-performance from AFDC-UP to the regular AFDC population, 
with limited exemptions, where failure to perform any item in the self-
sufficiency plan would cause disqualification of the parent for AFDC, 
Food Stamps, and Medicaid; reduce the grant by $40 when a nonexempt 
child fails to meet the performance requirements; require able-bodied 
applicants and recipients to do job search for up to 16 weeks unless 
otherwise exempted; terminate the case when there is loss of contact 
with the client for 1 month after nonpayment for failure to meet the 
performance requirements; exclude the earned income and resources of a 
dependent child who is a full-time high school student; allow payment 
of the supplied shelter grant for households with a SSI recipient, 
unmarried minor parents, or recipients disqualified for other reasons 
(fraud, education time limits, illegal aliens); exclude one licensed 
vehicle with a fair market value of less than $12,000; increase the 
resource limit to $2,500 for those in compliance with, or exempted 
from, the performance requirements; and exclude veteran's service 
connected disability compensation if the annual income is less than the 
poverty level.
    Date Received: 5/13/96.
    Type: Combined AFDC/Medicaid.
    Current Status: Pending (provisions not previously published).
    Contact Person: Marianne Lee, (307) 777-6849.

III. Listing of Approved Proposals Since May 1, 1995

    Project Title: Minnesota Family Investment Program (MFIP) 
(Amendment).
    Contact Person: Chuck Johnson (612) 297-4727.

    Project Title: South Carolina--Family Independence Program.
    Contact Person: Linda Martin (804) 737-6010.

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: June 4, 1996.
Karl Koerper,
Director, Division of Economic Independence, Office of Planning, 
Research and Evaluation.
[FR Doc. 96-14557 Filed 6-7-96; 8:45 am]
BILLING CODE 4184-01-P