DEMONSTRATION OF FAMILY INDEPENDENCE PROGRAM.

SEC. 9121. DEMONSTRATION OF FAMILY INDEPENDENCE PROGRAM. (a) In General.— Upon application of the State of Washington and approval by the Secretary of Health and Human Services, the State of Washington (in this section referred to as the “State”) may conduct a demonstration project in accordance with this section for the purpose of testing whether the operation of its Family Independence Program enacted in May 1987 (in this section referred to as the “Program”), as an alternative to the AFDC program under title IV of the Social Security Act, would more effectively break the cycle of poverty and provide families with opportunities for economic independence and strengthened family functioning. (b) Nature of Project.— Under the demonstration project conducted under this section— (1) every individual eligible for aid under the State plan approved under section 402(a) of the Social Security Act shall be eligible to enroll in the Program, which shall operate simultaneously with the AFDC program so long as there are individuals who qualify for the latter; (2) cash assistance shall be furnished in a timely manner to all eligible individuals under the Program (and the State may not make expenditures for services under the Program until it has paid all necessary cash assistance), with no family receiving less in cash benefits than it would have received under the AFDC program; (3) individuals may be required to register, undergo assessment, and participate in work, education, or training under the Program, except that— (A) work or training may not be required in the case of— (i) a single parent of a child under six months of age, or more than one parent of such a child in a two-parent family, (ii) a single parent with a child of any age who has received assistance for less than six months, (iii) a single parent with a child under three years of age who has received assistance for less than three years, (iv) an individual under 16 years of age or over 64 years of age, (v) an individual who is incapacitated, temporarily ill, or needed at home to care for an impaired person, or (vi) an individual who has not yet been individually notified in writing of such requirement or of the expiration of his or her exempt status under this subparagraph; (B) participation in work or training shall in any case be voluntary during the first two years of the Program, and may thereafter be made mandatory only in counties where more than 50 percent of the enrollees can be placed in employment within three months after they are job ready; (C) in no case shall the work and training aspect of the Program be mandated in any county where the unemployment level is at least twice the State average; and 101 STAT. 1330–311 (D) mandated work shall not include work in any position created by a reduction in the work force, a bona fide labor dispute, the decertification of a bargaining unit, or a new job classification which subverts the intention of the Program; (4) there shall be no change in existing State law which would eliminate guaranteed benefits or reduce the rights of applicants or enrollees; and (5) the Program shall include due process guarantees and procedures no less than those which are available to participants in the AFDC program under Federal law and regulation and under State law. (c) Waivers.— The Secretary shall (with respect to the project under this section) waive compliance with any requirements contained in title IV of the Social Security Act which (if applied) would prevent the State from carrying out the project or effectively achieving its purpose, or with the requirements of sections 1902(a)(1), 1902(e)(1), and 1916 of that Act Gout only to the extent necessary to enable the State to carry out the Program 9292Copy read “program”. as enacted by the State in April 1987). (d) Funding.— (1) The Secretary, under section 403(b) or 1903(d) of the Social Security Act, shall reimburse the State for its expenditures under the Program— (A) at a rate equal to the Federal matching rate applicable to the State under section 403(a)(1) (or 1118) of the Social Security Act, for cash assistance, medical assistance, and child care provided to enrollees; (B) at a rate equal to the applicable Federal matching rate under section 403(a)(3) of such Act, for administrative expenses; and (C) at the rate of 75 percent for an evaluation plan approved by the Secretary. (2) As a condition of approval of the project under this section, the State must provide assurances satisfactory to the Secretary that the total amount of Federal reimbursement over the period of the project will not exceed the anticipated Federal reimbursements (over that period) under the AFDC and Medicaid programs; but this paragraph shall not prevent the State from claiming reimbursement for additional persons who would qualify for assistance under the AFDC program, for costs attributable to increases in the State’s payment standard, or for any other federally-matched benefits or services. (e) Evaluation.— The State must satisfy the Secretary that the Program 9393Copy read “program”. will be evaluated using a reasonable methodology. (f) Duration of Project.— (1) The project under this section shall begin on the date on which the first individual is enrolled in the Program and (subject to paragraph (2)) shall end five years after that date. (2) The project may be terminated at any time, on six months written notice, by the State or (upon a finding that the State has materially failed to comply with this section) by the Secretary.