SEC. 601. PROGRAM COORDINATION DEMONSTRATION PROJECTS. 

(a) Purpose- The purpose of this section is to establish a program of  demonstration projects in a State or portion of a State to coordinate multiple public assistance, workforce development, and other programs, for the purpose of supporting working individuals and families, helping families escape welfare dependency, promoting child well-being, or helping build stronger families, using innovative approaches to strengthen service systems and provide more coordinated and effective service delivery. 

(b) Definitions- In this section: 

(1) ADMINISTERING SECRETARY- The term `administering Secretary' means, with respect to a qualified program, the head of the Federal agency responsible for administering the program. 

(2) QUALIFIED PROGRAM- The term `qualified program' means-- 

          (A) a program under part A of title IV of the Social Security Act; 

          (B) the program under title XX of such Act; 

          (C) activities funded under title I of the Workforce Investment Act

             of 1998, except subtitle C of such title; 

(D) a demonstration project authorized under section 505 of the

              Family Support Act of 1988; 

(E) activities funded under the Wagner-Peyser Act; 

          (F) activities funded under the Adult Education and Family Literacy  Act; 

(G) activities funded under the Child Care and Development Block  Grant Act of 1990; 

          (H) activities funded under the United States Housing Act of 1937 (42

          U.S.C. 1437 et seq.), except that such term shall not include-- 

                    (i) any program for rental assistance under section 8 of such Act

 (42 U.S.C. 1437f); and 

                    (ii) the program under section 7 of such Act (42 U.S.C. 1437e) for

                   designating public housing for occupancy by certain populations; 

(I) activities funded under title I, II, III, or IV of the       McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et seq.); or 

(J) the food stamp program as defined in section 3(h) of the Food   Stamp Act of 1977 (7 U.S.C. 2012(h)). 

(c) Application Requirements- The head of a State entity or of a sub-State entity administering 2 or more qualified programs proposed to be included in a demonstration project under this section shall (or, if the project is proposed to include qualified programs administered by 2 or more such entities, the heads of the administering entities (each of whom shall be considered an applicant for purposes of this section) shall jointly) submit to the administering Secretary of each such program an application that contains the following: 

(1) PROGRAMS INCLUDED- A statement identifying each qualified program to be included in the project, and describing how the purposes of each such program will be achieved by the project. 

(2) POPULATION SERVED- A statement identifying the population to be served by the project and specifying the eligibility criteria to be used. 

(3) DESCRIPTION AND JUSTIFICATION- A detailed description of the  project, including-- 

(A) a description of how the project is expected to improve or enhance achievement of the purposes of the programs to be included in the  project, from the standpoint of quality, of cost-effectiveness, or of  both; and 

(B) a description of the performance objectives for the project, including any proposed modifications to the performance measures and  reporting requirements used in the programs. 

(4) WAIVERS REQUESTED- A description of the statutory and regulatory requirements with respect to which a waiver is requested in order to carry  out the project, and a justification of the need for each such waiver. 

(5) COST NEUTRALITY- Such information and assurances as necessary to  establish to the satisfaction of the administering Secretary, in consultation with the Director of the Office of Management and Budget, that the proposed project is reasonably expected to meet the applicable cost neutrality requirements of subsection (d)(4). 

(6) EVALUATION AND REPORTS- An assurance that the applicant will  conduct ongoing and final evaluations of the project, and make interim and  final reports to the administering Secretary, at such times and in such manner as the administering Secretary may require. 

(7) PUBLIC HOUSING AGENCY PLAN- In the case of an application proposing  a emonstration project that includes activities referred to in subsection (b)(2)(H) of this section-- 

(A) a certification that the applicable annual public housing agency  plan of any agency affected by the project that is approved under section  5A of the United States Housing Act of 1937 (42 U.S.C. 1437c-1) by the  Secretary includes the information specified in paragraphs (1) through (4) of this subsection; and 

(B) any resident advisory board recommendations, and other  information, relating to the project that, pursuant to section 5A(e)(2) of  the United States Housing Act of 1937 (42 U.S.C. 1437c-1(e)(2), is  required to be included in the public housing agency plan of any public  housing agency affected by the project. 

(8) OTHER INFORMATION AND ASSURANCES- Such other information and assurances as the administering Secretary may require. 

  (d) Approval of Applications- 

(1) IN GENERAL- The administering Secretary with respect to a qualified  program that is identified in an application submitted pursuant to  subsection (c) may approve the application and, except as provided in  paragraph (2), waive any requirement applicable to the program, to the  extent consistent with this section and necessary and appropriate for the  conduct of the demonstration project proposed in the application, if the  administering Secretary determines that the project-- 

(A) has a reasonable likelihood of achieving the objectives of the  programs to be included in the project; 

(B) may reasonably be expected to meet the applicable cost neutrality  requirements of paragraph (4), as determined by the Director of the Office of Management and Budget; and 

(C) includes the coordination of 2 or more qualified programs. 

(2) PROVISIONS EXCLUDED FROM WAIVER AUTHORITY- A waiver shall not be granted under paragraph (1)-- 

(A) with respect to any provision of law relating to-- 

        (i) civil rights or prohibition of discrimination; 

        (ii) purposes or goals of any program; 

        (iii) maintenance of effort requirements; 

        (iv) health or safety; 

        (v) labor standards under the Fair Labor Standards     Act of 1938; or 

        (vi) environmental protection; 

(B) with respect to section 241(a) of the Adult Education and Family  Literacy Act; 

(C) in the case of a program under the United States Housing Act of  1937 (42 U.S.C. 1437 et seq.), with respect to any requirement under  section 5A of such Act (42 U.S.C. 1437c-1; relating to public housing  agency plans and resident advisory boards); 

(D) in the case of a program under the Workforce Investment Act, with  respect to any requirement the waiver of which would violate section  189(i)(4)(A)(i) of such Act; 

(E) in the case of the food stamp program (as defined in section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h)), with respect to any  requirement under-- 

(i) section 6 (if waiving a requirement under such section would  have the effect of expanding eligibility for the program), 7(b) or 16(c)  of the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.); or

 (ii) title IV of the Personal Responsibility and Work Opportunity

 Reconciliation Act of 1996 (8 U.S.C. 1601 et seq.); 

(F) with respect to any requirement that a State pass through to a  sub-State entity part or all of an amount paid to the State; 

(G) if the waiver would waive any funding restriction or limitation  provided in an appropriations Act, or would have the effect of  transferring appropriated funds from 1 appropriations account to another;

 or 

(H) except as otherwise provided by statute, if the waiver would  waive any funding restriction applicable to a program authorized under an  Act which is not an appropriations Act (but not including program  requirements such as application procedures, performance standards,  reporting requirements, or eligibility standards), or would have the effect of transferring funds from a program for which there is direct spending (as defined in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985) to another program. 

(3) AGREEMENT OF EACH ADMINISTERING SECRETARY REQUIRED- 

(A) IN GENERAL- An applicant may not conduct a demonstration project  under this section unless each administering Secretary with respect to any  program proposed to be included in the project has approved the  application to conduct the project. 

(B) AGREEMENT WITH RESPECT TO FUNDING AND IMPLEMENTATION- Before  approving an application to conduct a demonstration project under this  section, an administering Secretary shall have in place an agreement with  the applicant with respect to the payment of funds and responsibilities  required of the administering Secretary with respect to the project. 

    (4) COST-NEUTRALITY REQUIREMENT- 

(A) GENERAL RULE- Notwithstanding any other provision of law (except  subparagraph (B)), the total of the amounts that may be paid by the  Federal Government for a fiscal year with respect to the programs in the  State in which an entity conducting a demonstration project under this  section is located that are affected by the project shall not exceed the estimated total amount that the Federal Government would have paid for the fiscal year with respect to the programs if the project had not been conducted, as determined by the Director of the Office of Management and Budget. 

(B) SPECIAL RULE- If an applicant submits to the Director of the Office of Management and Budget a request to apply the rules of this subparagraph to the programs in the State in which the applicant is located that are affected by a demonstration project proposed in an application submitted by the applicant pursuant to this section, during such period of not more than 5 consecutive fiscal years in which the project is in effect, and the Director determines, on the basis of supporting information provided by the applicant, to grant the request, then, notwithstanding any other provision of law, the total of the amounts that may be paid by the Federal Government for the period with respect to the programs shall not exceed the estimated total amount that the Federal Government would have paid for the period with respect to the programs if the project had not been conducted. 

(5) 90-day approval deadline- 

(A) IN GENERAL- If an administering Secretary receives an application  to conduct a demonstration project under this section and does not  disapprove the application within 90 days after the receipt, then-- 

(i) the administering Secretary is deemed to have approved the  application for such period as is requested in the application, except to the extent inconsistent with subsection (e); and 

(ii) any waiver requested in the application which applies to a  qualified program that is identified in the application and is  administered by the administering Secretary is deemed to be granted,  except to the extent inconsistent with paragraph (2) or (4) of this  subsection. 

(B) DEADLINE EXTENDED IF ADDITIONAL INFORMATION IS SOUGHT- The 90-day  period referred to in subparagraph (A) shall not include any period that  begins with the date the Secretary requests the applicant to provide additional information with respect to the application and ends with the date the additional information is provided. 

(e) Duration of Projects- A demonstration project under this section may be approved for a term of not more than 5 years. 

(f) Reports to Congress- 

(1) REPORT ON DISPOSITION OF APPLICATIONS- Within 90 days after an administering Secretary receives an application submitted pursuant to this section, the administering Secretary shall submit to each Committee of the Congress which has jurisdiction over a qualified program identified in the application notice of the receipt, a description of the decision of the administering Secretary with respect to the application, and the reasons for approving or disapproving the application. 

(2) REPORTS ON PROJECTS- Each administering Secretary shall provide  annually to the Congress a report concerning demonstration projects  approved under this section, including--    

(A) the projects approved for each applicant; 

(B) the number of waivers granted under this section, and the  specific statutory provisions waived; 

(C) how well each project for which a waiver is granted is improving  or enhancing program achievement from the standpoint of quality, cost-effectiveness, or both; 

(D) how well each project for which a waiver is granted is meeting the performance objectives specified in subsection (c)(3)(B); 

(E) how each project for which a waiver is granted is conforming with  the cost-neutrality requirements of subsection (d)(4); and 

(F) to the extent the administering Secretary deems appropriate,  recommendations for modification of programs based on outcomes of the  projects. 

(g) Amendment to United States Housing Act of 1937- Section 5A(d) of the  United States Housing Act of 1937 (42 U.S.C. 1437c-1(d)) is amended--

(1) by redesignating paragraph (18) as paragraph (19); and 

(2) by inserting after paragraph (17) the following new paragraph:

 `(18) PROGRAM COORDINATION DEMONSTRATION PROJECTS- In the case of an agency that administers an activity referred to in section 601(b)(2)(H) of  the Personal Responsibility, Work, and Family Promotion Act of 2005 that,  during such fiscal year, will be included in a demonstration project under  section 601 of such Act, the information that is required to be included  in the application for the project pursuant to paragraphs (1) through (4)  of section 601(b) of such Act.'.

Contact us: Dr. Lennox McLendon; 444 North Capitol Street, NW; Suite 422; Washington, DC 20001
Phone: 202-624-5250; Fax: 202-624-1497; Email: dc2@ncsdae.org