S.Amdt. 2980

1. Inserts new text on page 253, between lines 6 and 7

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   Inserted: (d) Demonstration Projects To Achieve Better Results Through Greater Flexibility.--Section 413 (42 U.S.C. 613), as amended by subsection (a), is amended by adding at the end the following:

   Inserted: "(m) Demonstration Projects To Achieve Better Results Through Greater Flexibility.--

   Inserted: "(1) Purpose.--The purpose of this subsection is to allow up to 10 States to conduct a demonstration project to test the premise that a State program funded under this part can achieve better results, helping people achieve true self-sufficiency, if the State is given greater flexibility to best meet individual needs, and to test ways to improve coordination of the State program funded under this part with activities funded under the Workforce Investment Act of 1998.

   Inserted: "(2) Requirements for participation.--

   Inserted: "(A) In general.--In order to be selected to conduct a demonstration project under this subsection, a State shall submit an application to the Secretary that--

   Inserted: "(i) describes how the State will ensure that all adult recipients of assistance under the State program funded under this part have a self-sufficiency, employment plan that satisfies the requirements of section 408(b);

   Inserted: "(ii) contains an assurance that, if selected to conduct the demonstration project, the State shall agree to enter into a performance agreement with the Secretary that--

   Inserted: "(I) includes targets for increasing the State's performance above a baseline level, as determined under subparagraph (C), on 1 or more State-defined outcomes measures for each of the areas described in subparagraph (B); and

   Inserted: "(II) requires, in the case of a State that fails to meet the agreed upon performance targets, the State, at the discretion of the Secretary, to carry out one or more of the following--

   Inserted: "(aa) enter into a corrective compliance plan with the Secretary;

   Inserted: "(bb) renegotiate the performance targets with the Secretary; or

   Inserted: "(cc) terminate the demonstration project;

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   Inserted: "(iii) contains an assurance that the State will arrange for an evaluation of the demonstration project to determine if the State is able to achieve improved employment outcomes for the families of the adult recipients participating in the demonstration project; and

   Inserted: "(iv) contains such other information or assurances as the Secretary may require.

   Inserted: "(B) Areas described.--For purposes of subparagraph (A)(ii), the areas described in this subparagraph are the following:

   Inserted: "(i) Employment.

   Inserted: "(ii) Success in activities designed to improve employment and related outcomes.

   Inserted: "(iii) Job retention.

   Inserted: "(iv) Entry earnings and earnings gains.

   Inserted: "(v) Child well-being.

   Inserted: "(C) Determination of baseline performance levels.--The State shall negotiate with the Secretary a mechanism for measuring baseline performance levels for purposes of subparagraph (A)(ii)(I). Such baseline levels may be calculated during the initial year of the project or may be calculated based on data from years immediately prior to the commencement of the project.

   Inserted: "(3) Modifications of requirements of this part.--In the case of a State selected to conduct a demonstration project under this subsection, the State must be able to demonstrate to the Secretary that a reasonable share of adult recipients are participating in welfare to work activities and that moving from welfare to work is central to the project, consistent with the purpose of the project, which is to achieve the targets defined as outcome measures described in clauses (i) through (v) of paragraph (2)(B). If the Secretary is provided with the assurances described in the preceding sentence, the Secretary shall waive such requirements of subsections (a) through (d) of section 407 as determined to be necessary for the State to conduct such project.

   Inserted: "(4) Statewide or sub-state demonstration projects.--The Secretary may approve a demonstration project under this subsection to be conducted on a statewide or sub-State basis. In the case of a State that is approved to conduct a sub-State demonstration project, the Secretary shall determine the minimum participation rate for the State under section 407 without regard to the sub-State area in which the demonstration project is conducted.

   Inserted: "(5) Approval of applications.--

   Inserted: "(A) Variety of sites.--In selecting States to conduct demonstration projects under this subsection, the Secretary shall, to the extent practicable, select States that will result in demonstration projects being conducted in a geographic variety of States and sub-State areas.

   Inserted: "(B) Coordination with workforce investment act.--The Secretary shall ensure that at least 2 of the demonstration projects approved under this subsection include assurances that the State will improve coordination of the State program funded under this part with activities funded under the Workforce Investment Act of 1998.

   Inserted: "(C) Strength of evaluation.--In selecting States to conduct demonstration projects under this subsection, the Secretary shall consider the strength and rigor of the research designs that States propose to use in conducting evaluations of such demonstration projects.

   Inserted: "(D) Length of projects.--A demonstration project approved under this subsection--

   Inserted: "(i) shall be conducted for an initial period of not more than 5 years; and

   Inserted: "(ii) may be renewed for an additional period of not more than 5 years.

   Inserted: "(6) Reports.--

   Inserted: "(A) Initial report.--Not later than the end of the fourth year in which demonstration projects are conducted under this subsection, the Secretary shall submit a report to Congress on the progress of the demonstration projects in achieving the results described in paragraph (1). Such report shall contain data sufficient to enable demonstration project results to be taken into consideration by Congress in the reauthorization of the program under this part.

   Inserted: "(B) Final report.--Not later than 1 year after the date on which the initial period of the demonstration projects expires (as provided for in paragraph (5)(B)(i)), the Secretary shall submit a final report to Congress concerning the results of such demonstration projects.

   Inserted: "(C) Other reporting requirements.--The Secretary and the State shall work out mechanisms to satisfy other reporting requirements that may be necessary.".

   Original wording

   On page 253, between lines 6 and 7, insert the following:

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