state demonstration projects

state demonstration projects Sec. 404. Section 1115 of the Social Security Act is amended— (1) by inserting “(a)” after “Sec. 1115.”; (2) by redesignating subsections (a) and (b) as paragraphs (1) and (2), respectively; and (3) by adding at the end thereof the following new subsection: “(b) (1) In order to permit the States to achieve more efficient and effective use of funds for public assistance, to reduce dependency, and to improve the living conditions and increase the incomes of individuals who are recipients of public assistance, any State having an approved plan under part A of title IV may, subject to the provisions of this subsection, establish and conduct not more than three demonstration projects. In establishing and conducting any such project the State shall— “(A) provide that not more than one such project be conducted on a statewide basis; “(B) provide that in making arrangements for public service employment— “(i) appropriate standards for the health, safety, and other conditions applicable to the performance of work and training on such project are established and will be maintained, “(ii) such project will not result in the displacement of employed workers, “(iii) each participant in such project shall be compensated for work performed by him at an hourly rate equal to the prevailing hourly wage for similar work in the locality where the participant performs such work (and, for purposes of this clause, benefits payable under the State’s plan approved under part A of title IV of the family of which such participant is a member shall be regarded as compensation for work performed by such participant), “(iv) with respect to such project the conditions of work, training, education, and employment are reasonable in the light of such factors as the type of work, geographical region, and proficiency of the participant, and “(v) appropriate workmen’s compensation protection is provided to all participants; and “(C) provide that participation in such project by any individual receiving aid to families with dependent children be voluntary. 91 STAT. 1563 “(2) Any State which establishes and conducts demonstration projects under this subsection may, subject to paragraph (3), with respect to any such project— “(A) waive, subject to paragraph (3), any or all of the requirements of sections 402(a) (1) (relating to statewide operation), 402(a) (3) (relating to administration by a single State agency), 402(a) (8) (relating to disregard of earned income), except that no such waiver of 402(a) (8) shall operate to waive any amount in excess of one-half of the earned income of any individual, and 402 (a) (19) (relating to the work incentive program); “(B) subject to paragraph (4), use to cover the costs of the project such funds as are appropriated for payment to such State with respect to the assistance which is or would, except for participation in a project under this subsection, be payable to individuals participating in such projects under part A of title IV for any fiscal year in which such projects are conducted; and “(C) use such funds as are appropriated for payments to States under the State and Local Fiscal Assistance Act of 1972 for any fiscal year in which the project is conducted to cover so much of the costs of salaries for individuals participating in public service employment as is not covered through the use of funds made available under subparagraph (B). “(3) (A) Any State which wishes to establish and conduct demonstration projects under the provisions of this subsection shall submit an application to the Secretary in such form and containing such information as the Secretary may require. Whenever any State submits such an application to the Secretary, it shall at the same time issue public notice of that fact together with a general description of the project with respect to which the application is submitted, and shall invite comment thereon from interested parties and comments thereon may be submitted, within the 30-day period beginning with the date the application is submitted to the Secretary, to the State or the Secretary by such parties. The State shall also make copies of the application available for public inspection. The Secretary shall also immediately publish a summary of the proposed project, make copies of the application available for public inspection, and receive and consider comments submitted with respect to the application. A State shall be authorized to proceed with a project submitted under this subsection— “(i) when such application has been approved by the Secretary (which shall be no earlier than 30 days following the date the application is submitted to him), or “(ii) 60 days after the date on which such application is submitted to the Secretary unless, during such 60 day period, he denies the application. “(B) Notwithstanding the provisions of paragraph (2) (A), the Secretary may review any waiver made by a State under such paragraph. Upon a finding that any such waiver is inconsistent with the purposes of this subsection and the purposes of part A of title IV, the Secretary may disapprove such waiver. The project with respect to which any such disapproved waiver was made shall be terminated by such State not later than the last day of the month following the month in which such waiver was disapproved. 91 STAT. 1564 “(4) Any amount payable to a State under section 403(a) on behalf of an individual participating in a project under this section shall not be increased by reason of the participation of such individual in any demonstration project conducted under this subsection over the amount which would be payable if such individual were receiving aid to families with dependent children and not participating in such project. “(5) Participation in a project established under this section shall not be considered to constitute employment for purposes of any finding with respect to ‘unemployment’ as that term is used in section 407. “(6) Any demonstration project established and conducted pursuant to the provisions of this subsection shall be conducted for not longer than two years. All demonstration projects established and conducted pursuant to the provisions of this subsection shall be terminated not later than September 30, 1980.”.