DEMONSTRATION OF EFFECTIVENESS OF MINNESOTA FAMILY INVESTMENT PLAN.

SEC. 8015. DEMONSTRATION OF EFFECTIVENESS OF MINNESOTA FAMILY INVESTMENT PLAN. (a) In General.—Upon written application of the State of Minnesota (in this section referred to as the “State”) within 24 months after the date of the enactment of this Act, and after the Secretary of Health and Human Services approves the application as meeting the requirements set forth in subsection (b), the State may conduct a demonstration project to determine whether the State family investment plan helps families to become self-supporting and enhances the ability of families to care for their children more effectively than does the State program of aid to families with dependent children under part A of title IV of the Social Security Act. (b) Project Requirements.—In an application submitted under subsection (a), the State shall provide that the following terms and conditions shall be in effect under the demonstration project: (1) Field trials.— The project will consist of 2 field trials, conducted as follows: (A) Urban field trial.—1 field trial will be conducted in 1 or more of the following counties in the State: (i) Anoka. (ii) Carver. (iii) Dakota. (iv) Hennepin. (v) Scott. (vi) Washington. (B) Rural field trial.—1 field trial will be conducted in 1 or more counties in the State not specified in subparagraph (A). 103 STAT. 2466 (C) Number of families involved.—The field trials will not involve more than a total of 6,000 families at any one time, excluding families whose sole involvement is as members of control groups needed to evaluate the project. (2) Authority to implement field trials differently.—The implementation of the family investment plan in 1 field trial may be different from the implementation of such plan in the other field trial. (3) Waivers required before project begins.—The project will not begin before all waivers required as described in subsection (e) have been granted. (4) Beginning of project.— (A) In general.—The project will begin during the first month of a calendar quarter. (B) Begin defined.—For purposes of this section, the project begins when the first family receives assistance under the project. (5) Project to be operated in accordance with certain Minnesota laws.—The project will be operated in accordance with the 1989 Minnesota Laws sections 6 through 11, 13, 130, and 132 of article 5 of chapter 282, and all amendments to the Laws of Minnesota, to the extent that such laws and amendments are consistent with the goals of the project and this subsection. (6) Project participants ineligible for afdc.—Each family which participates in the project will not be eligible for aid under the State plan approved under section 402(a) of the Social Security Act. (7) Medicaid eligibility rules applicable to project.— (A) Eligibility of participants.— (i) In general.—Each family which participates in the project and would (but for such participation) be eligible for aid under the State plan approved under section 402(a) of the Social Security Act will be treated as receiving such aid Tor purposes of the State plan approved under section 1902(a) of such Act. (ii) Eligibility extended for project participants with increased employment income.—Each family which participates in the project and, during such participation, would (but for such participation) become ineligible for aid under the State plan approved under section 402(a) of the Social Security Act by reason of increased income from employment will, for purposes of section 1925 of such Act, be treated as a family that has become ineligible for such aid. (B) Eligibility extended for persons leaving project because of increased receipt of child support.—Each family whose participation in the project is terminated by reason of the collection or increased collection of child support under part D of title IV of the Social Security Act will be treated as a recipient of aid to families with dependent children for purposes of title XIX of such Act for an additional 4 calendar months beginning with the month in which the termination occurs. (8) AFDC rules to apply generally.— (A) In general.—Except where inconsistent with this subsection, the requirements of the State plan approved 103 STAT. 2467under section 402(a) of the Social Security Act will apply to the project, unless waived by the Secretary of Health and Human Services in accordance with subsection (d). (B) Rules relating to participation in education, employment, and training activities.— (i) Participation generally not required.—Except as provided in clause (ii), the State will not require any individual who applies for or receives assistance under the project to comply with any education, employment, or training requirement of title IV of the Social Security Act, unless required to do so under a contract entered into under the project. (ii) Authority to require participation of parent of child age i or older.—The State may require any individual to comply with any education, employment, or training requirement imposed under the project if the State plan approved under section 402(a) of the Social Security Act does not prohibit the State from requiring such compliance, and the individual— (I) receives assistance under the project; (II) is the parent or relative of a child who has attained the age of 1 year; and (III) is personally providing care for the child. (9) Availability of education, employment, and training services.—The education, employment, and training services available under the State plan approved under part F of title IV of the Social Security Act will be made available to each family required to enter into a contract with a county agency under the 1989 Minnesota Laws, section 10 of article 5 of chapter 282. (10) Assistance under project not less than under afdc and food stamp program.— (A) Establishment of policies and standards.—The State will establish policies and standards to ensure that families participating in the project receive cash assistance under the project in an amount not less than the aggregate value of the assistance that such families would have received under the State plan approved under section 402(a) of such Act and under the food stamp program established under the Food Stamp Act of 1977 in the absence of the project. (B) Identification of characteristics of participants who might receive less benefits than under afdc and food stamp program.—The State will identify the set or sets of characteristics of families that (but for this paragraph) might receive benefits under the project in an amount less than the amount required under subparagraph (A) to be provided to such family. (C) Determination of benefit level for participants with identified characteristics.—The State will establish a mechanism to determine, for each family with any set of characteristics identified under subparagraph (B), whether the family would (but for this paragraph) receive benefits under the project in an amount less than the amount required under subparagraph (A) to be provided to such family. (D) Assistance under project increased where necessary.—The State will, for each family which would (but 103 STAT. 2468for this paragraph) receive benefits under the project in an amount less than the amount required under subparagraph (A) to be provided to such family, increase the amount of such benefits to such family to the amount so required. (11) Termination of project.—The project will terminate at the end of the 5-year period beginning on the first day of the month during which the project begins, or, if earlier— (A) 180 days after the State notifies the Secretary of Health and Human Services that the State intends to terminate the project; (B) 180 days after the Secretary of Health and Human Services, after 30 days written notice to the State and opportunity for a hearing, determines that the State has materially failed to comply with this section; or (C) on agreement by the State and the Secretary of Health and Human Services. (c) Funding.— (1) In general.— If an application submitted under subsection (a) by the State complies with the requirements specified in subsection (b) and contains an evaluation plan which meets the requirements of subsection (g), and the Secretary of Health and Human Services approves the application, then the Secretary shall, from amounts made available under parts A and F of title IV of the Social Security Act— (A) pay the State for each calendar quarter, pursuant to section 403 of such Act, the amounts that would have been payable to the State during such calendar quarter, in the absence of the demonstration project, for cash assistance, child care, education, employment and training, and administrative expenses under the State plan approved under section 402(a) of such Act; (B) reimburse the State at the rate of 50 percent, for expenses of evaluating the effects of the project. (2) Rule of construction.—Paragraph (1) shall not be construed to prevent the State from claiming and receiving reimbursement for additional persons who would qualify for assistance under the State plan approved under section 402(a) of the Social Security Act, for costs attributable to increases in the State’s payment standard under such plan, or for any other benefits and services for which Federal matching funds are available under part A of title IV of such Act. (d) Waiver Authority.— (1) AFDC waivers.— (A) In general.—Except as provided in subparagraph (B), the Secretary of Health and Human Services shall, with respect to the demonstration project under this section, waive any requirement of part A or F of title IV of the Social Security Act that, if applied, would prevent the State from (i) carrying out the project in accordance with subsection (b), or (ii) effectively achieving its purposes, but only to the extent necessary to enable the State to carry out the project. (B) Limitations.—The Secretary of Health and Human Services may not, with respect to the demonstration project under this section— (i) waive any requirement of section 402(a)(4) or 482(h) of the Social Security Act; 103 STAT. 2469 (ii) permit the State to provide cash assistance to any family under the project in an amount less than the aggregate value of the assistance that would have been provided to such family under the State plan approved under section 402(a) of such Act and under the food stamp program established under the Food Stamp Act of 1977 in the absence of the project; or (iii) waive any requirement of section 402(a)(19)(C) of such Act. (2) Other waivers.— If, under this section, the Secretary of Health and Human Services approves an application by the State to conduct a demonstration project relating to the State family investment plan, the Secretary of Health and Human Services shall, in order to enable the State to implement the demonstration project— (A)(i) require that the State treat each family participating in the project as individuals eligible for medical assistance under section 1902(a)(10)(A) of the Social Security Act, (ii) require that the State treat, for purposes of section 1925 of such Act, each family whose participation in the project is terminated by reason of increased income from employment as a family that has become ineligible for aid under the State plan approved under part A of title IV of such Act, and (iii) require that the State treat each family whose participation in the project is terminated by reason of the collection or increased collection of child support under part D of title IV of the Social Security Act as a recipient of aid to families with dependent children for purposes of title XIX of such Act for an additional 4 calendar months beginning with the month in which such termination occurs; and (B) make payment, under section 1903 of such Act, for medical assistance and administrative expenses for families participating in the project in the same manner as such payments may be made for medical assistance and administrative expenses for individuals entitled to benefits under title XIX of such Act, except that the aggregate amount of such payments may not exceed the aggregate amount of payments that would have been made for those families in the absence of such project. (e) Definitions of Certain Terms.—As used in this section, the terms “family” and “contract” shall have the meaning given such terms by the 1989 Minnesota Laws, sections 6 through 11, 13, 130, and 132 of article 5 of chapter 282. (f) Quality Control.—Cases participating in the demonstration project under this section during a fiscal year shall be excluded from any sample taken for purposes of determining under section 403(i) or 408 of the Social Security Act, whichever is applicable, the rate at which the State made overpayments under part A of title TV of such Act for the fiscal year. For purposes of such sections 403(i) and 408, payments made by the State under the project shall be treated as payments made under the State plan approved under section 402(a) of such Act. (g) Evaluation of Project.— (1) Evaluation plan.—The State shall develop and implement an evaluation plan designed to provide reliable information on the impact and implementation of the demonstration 103 STAT. 2470project. The evaluation plan shall include groups of project participants and control groups assigned at random in the held trial conducted in accordance with subsection (b)(1)(A). (2) Evaluation.—The evaluation conducted under the evaluation plan shall measure the extent to which the project increases family employment and income, prevents long-term dependency, moves families toward self-support, reduces total assistance payments, and simplifies the welfare system. (3) Reports.—The State shall issue an interim report and a final report on the results of the evaluation described in paragraph (2) to the Secretary of Health and Human Services at such times as the Secretary shall require. (h) Report to Congress.—Within 3 months after receipt of the final report issued pursuant to subsection (g)(3), the Secretary of Health and Human Services shall report to the Congress the results of the evaluation described in subsection (g)(2).