ACYF-IM-CB-95-05 2/2/95

ACF Administration for Children and Families	U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Children, Youth and Families
	1. Log No.: ACYF-IM-CB-95-05	2. Issuance Date: 2/2/95
	3. Originating Office: Children's Bureau
	4. Key Word: Demonstration Projects & Waivers

INFORMATION MEMORANDUM

TO: State Agencies Administering or Supervising the Administration of Titles IV-E and IV-B of the Social Security Act

SUBJECT: New Legislation: Authorization of Demonstration Projects and Waivers for Programs under Title IV-B or IV-E of the Social Security Act (the Act)

LEGAL AND RELATED REFERENCES: Section 1129 of title XI of the Social Security Act (the Act); titles IV-E and IV-B of the Act; P. L. 103-432

PURPOSE: This memorandum is intended to inform the States of the passage of new legislation and to provide basic information about the new statute and requirements related to child welfare.

BACKGROUND: On October 31, 1994, the President signed the Social Security Amendments of 1994 (P. L. 103-432) which includes a number of child welfare provisions. Among other things, this legislation amends Part A of title XI of the Act by establishing a new section 1129 entitled Demonstration Projects.

Attached is a copy of section 1129 which authorizes not more than ten States to conduct demonstration projects related to title IV-B or IV-E and incorporates waiver authority.

INFORMATION: The major provisions of section 1129 are as follows:

Not more than ten States will be selected to conduct demonstration projects to promote the objectives of title IV-B or IV-E.
Waivers of requirements for title IV-B or IV-E will be granted if such requirements would prevent a State from carrying out or effectively achieving the purpose of the demonstration project.

Such waiver authority may not include:

(1) any provisions under sections 427 (effective before April 1, 1996), 422 (b)(9) (effective after April 1, 1996) or 479. In addition, waivers will not be granted if they would impact on the benefit entitlement of any qualified child or family under the title IV-E State plan.

Expenditures to conduct demonstration projects under section 1129 will be considered as expenditures under title IV-E or title IV-B (subpart 1 or 2).
The demonstration project will be conducted for not more than five years.
States that wish to be considered for selection must submit an application that meets the requirements set forth in section 1129, including a description of the demonstration project, the benefits expected, the program requirements to be waived and the proposed evaluation design.
States selected for demonstration projects under section 1129 must provide for evaluation of the demonstration project by a private contractor and must provide interim and final evaluation reports.

The cost of demonstration projects conducted under section 1129 may not exceed the amount of funds that would otherwise have been expended by the States under approved title IV-B or IV-E State plans if the demonstration projects were not approved.

To ensure full and effective implementation of this legislation, the Administration on Children, Youth and Families will issue guidance which will describe the child welfare demonstration projects and waiver authority, and the requirements necessary for approval of a State demonstration project. The guidance is expected to be issued by March 31, 1995.

INQUIRIES TO:

Michael W. Ambrose
Children's Bureau
(202) 205-8740

Olivia A. Golden
Commissioner
Administration on Children, Youth and Families

Attachment: Section 1129 of title XI of the Act