
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-554 Section 1(a)(6)[703(a)]]
[Document affected by Public Law 106-554 Section 1(a)(6)[703(b)]]
[CITE: 42USC1315]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
   SUBCHAPTER XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE 
                             SIMPLIFICATION
 
                       Part A--General Provisions
 
Sec. 1315. Demonstration projects


(a) Waiver of State plan requirements; costs regarded as State plan 
        expenditures; availability of appropriations

    In the case of any experimental, pilot, or demonstration project 
which, in the judgment of the Secretary, is likely to assist in 
promoting the objectives of subchapter I, X, XIV, XVI, or XIX of this 
chapter, or part A or D of subchapter IV of this chapter, in a State or 
States--
        (1) the Secretary may waive compliance with any of the 
    requirements of section 302, 602, 654, 1202, 1352, 1382, or 1396a of 
    this title, as the case may be, to the extent and for the period he 
    finds necessary to enable such State or States to carry out such 
    project, and
        (2)(A) costs of such project which would not otherwise be 
    included as expenditures under section 303, 655, 1203, 1353, 1383, 
    or 1396b of this title, as the case may be, and which are not 
    included as part of the costs of projects under section 1310 of this 
    title, shall, to the extent and for the period prescribed by the 
    Secretary, be regarded as expenditures under the State plan or plans 
    approved under such subchapter, or for administration of such State 
    plan or plans, as may be appropriate, and
        (B) costs of such project which would not otherwise be a 
    permissible use of funds under part A of subchapter IV of this 
    chapter and which are not included as part of the costs of projects 
    under section 1310 of this title, shall to the extent and for the 
    period prescribed by the Secretary, be regarded as a permissible use 
    of funds under such part.

In addition, not to exceed $4,000,000 of the aggregate amount 
appropriated for payments to States under such subchapters for any 
fiscal year beginning after June 30, 1967, shall be available, under 
such terms and conditions as the Secretary may establish, for payments 
to States to cover so much of the cost of such projects as is not 
covered by payments under such subchapters and is not included as part 
of the cost of projects for purposes of section 1310 of this title.

(b) Child support enforcement programs

    In the case of any experimental, pilot, or demonstration project 
undertaken under subsection (a) of this section to assist in promoting 
the objectives of part D of subchapter IV of this chapter, the project--
        (1) must be designed to improve the financial well-being of 
    children or otherwise improve the operation of the child support 
    program;
        (2) may not permit modifications in the child support program 
    which would have the effect of disadvantaging children in need of 
    support; and
        (3) must not result in increased cost to the Federal Government 
    under part A of such subchapter.

(c) Demonstration projects to test alternative definitions of 
        unemployment

    (1)(A) The Secretary shall enter into agreements with up to 8 States 
submitting applications under this subsection for the purpose of 
conducting demonstration projects in such States to test and evaluate 
the use, with respect to individuals who received aid under part A of 
subchapter IV of this chapter in the preceding month (on the basis of 
the unemployment of the parent who is the principal earner), of a number 
greater than 100 for the number of hours per month that such individuals 
may work and still be considered to be unemployed for purposes of 
section 607 of this title. If any State submits an application under 
this subsection for the purpose of conducting a demonstration project to 
test and evaluate the total elimination of the 100-hour rule, the 
Secretary shall approve at least one such application.
    (B) If any State with an agreement under this subsection so 
requests, the demonstration project conducted pursuant to such agreement 
may test and evaluate the complete elimination of the 100-hour rule and 
of any other durational standard that might be applied in defining 
unemployment for purposes of determining eligibility under section 607 
of this title.
    (2) Notwithstanding section 602(a)(1) of this title, a demonstration 
project conducted under this subsection may be conducted in one or more 
political subdivisions of the State.
    (3) An agreement under this subsection shall be entered into between 
the Secretary and the State agency designated under section 602(a)(3) of 
this title. Such agreement shall provide for the payment of aid under 
the applicable State plan under part A of subchapter IV of this chapter 
as though section 607 of this title had been modified to reflect the 
definition of unemployment used in the demonstration project but shall 
also provide that such project shall otherwise be carried out in 
accordance with all of the requirements and conditions of section 607 of 
this title (and, except as provided in paragraph (2), any related 
requirements and conditions under part A of subchapter IV of this 
chapter).
    (4) A demonstration project under this subsection may be commenced 
any time after September 30, 1990, and shall be conducted for such 
period of time as the agreement with the Secretary may provide; except 
that, in no event may a demonstration project under this section be 
conducted after September 30, 1995.
    (5)(A) Any State with an agreement under this subsection shall 
evaluate the comparative cost and employment effects of the use of the 
definition of unemployment in its demonstration project under this 
section by use of experimental and control groups comprised of a random 
sample of individuals receiving aid under section 607 of this title and 
shall furnish the Secretary with such information as the Secretary 
determines to be necessary to evaluate the results of the project 
conducted by the State.
    (B) The Secretary shall report the results of the demonstration 
projects conducted under this subsection to the Congress not later than 
6 months after all such projects are completed.

(e) \1\ Extensions of State-wide comprehensive demonstration projects 
        for which waivers granted
---------------------------------------------------------------------------

    \1\ So in original. No subsec. (d) has been enacted.
---------------------------------------------------------------------------
    (1) The provisions of this subsection shall apply to the extension 
of any State-wide comprehensive demonstration project (in this 
subsection referred to as ``waiver project'') for which a waiver of 
compliance with requirements of subchapter XIX of this chapter is 
granted under subsection (a) of this section.
    (2) During the 6-month period ending 1 year before the date the 
waiver under subsection (a) of this section with respect to a waiver 
project would otherwise expire, the chief executive officer of the State 
which is operating the project may submit to the Secretary a written 
request for an extension, of up to 3 years, of the project.
    (3) If the Secretary fails to respond to the request within 6 months 
after the date it is submitted, the request is deemed to have been 
granted.
    (4) If such a request is granted, the deadline for submittal of a 
final report under the waiver project is deemed to have been extended 
until the date that is 1 year after the date the waiver project would 
otherwise have expired.
    (5) The Secretary shall release an evaluation of each such project 
not later than 1 year after the date of receipt of the final report.
    (6) Subject to paragraphs (4) and (7), the extension of a waiver 
project under this subsection shall be on the same terms and conditions 
(including applicable terms and conditions relating to quality and 
access of services, budget neutrality, data and reporting requirements, 
and special population protections) that applied to the project before 
its extension under this subsection.
    (7) If an original condition of approval of a waiver project was 
that Federal expenditures under the project not exceed the Federal 
expenditures that would otherwise have been made, the Secretary shall 
take such steps as may be necessary to ensure that, in the extension of 
the project under this subsection, such condition continues to be met. 
In applying the previous sentence, the Secretary shall take into account 
the Secretary's best estimate of rates of change in expenditures at the 
time of the extension.

(Aug. 14, 1935, ch. 531, title XI, Sec. 1115, as added Pub. L. 87-543, 
title I, Sec. 122, July 25, 1962, 76 Stat. 192; amended Pub. L. 89-97, 
title I, Sec. 121(c)(3), July 30, 1965, 79 Stat. 352; Pub. L. 90-36, 
Sec. 2, June 29, 1967, 81 Stat. 94; Pub. L. 90-248, title II, 
Secs. 241(c)(4), 247, Jan. 2, 1968, 81 Stat. 917, 918; Pub. L. 93-233, 
Sec. 18(z-2)(1)(B), Dec. 31, 1973, 87 Stat. 973; Pub. L. 93-647, 
Sec. 3(c), Jan. 4, 1975, 88 Stat. 2349; Pub. L. 95-216, title IV, 
Sec. 404, Dec. 20, 1977, 91 Stat. 1562; Pub. L. 97-35, title XXIII, 
Sec. 2353(g), Aug. 13, 1981, 95 Stat. 872; Pub. L. 98-369, div. B, title 
VI, Sec. 2663(e)(5), July 18, 1984, 98 Stat. 1168; Pub. L. 98-378, 
Sec. 10, Aug. 16, 1984, 98 Stat. 1317; Pub. L. 99-272, title XIV, 
Sec. 14001(b)(2), Apr. 7, 1986, 100 Stat. 328; Pub. L. 100-485, title V, 
Sec. 503, Oct. 13, 1988, 102 Stat. 2402; Pub. L. 104-193, title I, 
Sec. 108(g)(2), Aug. 22, 1996, 110 Stat. 2168; Pub. L. 105-33, title IV, 
Sec. 4757(a), Aug. 5, 1997, 111 Stat. 527.)

                       References in Text

    Parts A and D of subchapter IV of this chapter, referred to in text, 
are classified to sections 601 et seq. and 651 et seq., respectively, of 
this title.
    Sections 1382 and 1383 of this title, referred to in subsec. (a)(1), 
(2), respectively, are references to sections 1382 and 1383 of this 
title as they existed prior to the general revision of this subchapter 
by Pub. L. 92-603, title III, Sec. 301, Oct. 30, 1972, 86 Stat. 1465, 
eff. Jan. 1, 1974. The prior sections (which are set out as notes under 
sections 1382 and 1383, respectively, of this title) continue in effect 
for Puerto Rico, Guam, and the Virgin Islands.


                               Amendments

    1997--Subsec. (e). Pub. L. 105-33 added subsec. (e).
    1996--Subsec. (a)(2). Pub. L. 104-193, Sec. 108(g)(2)(A), designated 
existing provisions as subpar. (A), struck out ``603,'' before ``655,'', 
substituted ``, and'' for period at end, and added subpar. (B).
    Subsec. (b). Pub. L. 104-193, Sec. 108(g)(2)(C), redesignated 
subsec. (c) as (b) and struck out former subsec. (b) which related to 
purposes, criteria and procedures applicable to establishment, 
participatory effect, duration and termination of demonstration 
projects.
    Subsec. (c). Pub. L. 104-193, Sec. 108(g)(2)(C), redesignated 
subsec. (d) as (c). Former subsec. (c) redesignated (b).
    Subsec. (c)(3). Pub. L. 104-193, Sec. 108(g)(2)(B), substituted 
``part A of such subchapter'' for ``the program of aid to families with 
dependent children''.
    Subsec. (d). Pub. L. 104-193, Sec. 108(g)(2)(C), redesignated 
subsec. (d) as (c).
    1988--Subsec. (d). Pub. L. 100-485 added subsec. (d).
    1986--Subsec. (b)(2)(C). Pub. L. 99-272 struck out subpar. (C) 
relating to use of funds as are appropriated for payments to States 
under chapter 67 of title 31 to cover costs of salaries for individuals 
in public service employment.
    1984--Subsec. (a). Pub. L. 98-378, Sec. 10(a)(1), substituted ``part 
A or D of subchapter IV'' for ``part A of subchapter IV'' in provisions 
preceding par. (1).
    Pub. L. 98-369, Sec. 2663(e)(5), struck out ``VI,'' after ``I,'' in 
provisions preceding par. (1).
    Subsec. (a)(1). Pub. L. 98-378, Sec. 10(a)(2), inserted ``654,''.
    Pub. L. 98-369, Sec. 2663(e)(5), struck out ``802,'' after ``602,''.
    Subsec. (a)(2). Pub. L. 98-378, Sec. 10(a)(3), inserted ``655,''.
    Pub. L. 98-369, Sec. 2663(e)(5), struck out ``803,'' after ``603,''.
    Subsec. (c). Pub. L. 98-378, Sec. 10(b), added subsec. (c).
    1981--Subsec. (a). Pub. L. 97-35 substituted in provision preceding 
par. (1) ``or XIX of this chapter'' for ``XIX, or XX of this chapter'', 
in par. (1) ``or 1396a of this title'' for ``1396a, 1397a, 1397b, or 
1397c of this title'', and in par. (2) ``or 1396b of this title'' for 
``1396b, or 1397a of this title'' and in par. (2) struck out ``or 
expenditures with respect to which payment shall be made under section 
1397a of this title,'' before ``as may be appropriate''.
    1977--Pub. L. 95-216 designated existing provisions as subsec. (a) 
and existing pars. (a) and (b) thereof as pars. (1) and (2), 
respectively, and added subsec. (b).
    1975--Pub. L. 93-647, Sec. 3(c)(1), substituted ``XIX, or XX'' for 
``or XIX''.
    Subsec. (a). Pub. L. 93-647, Sec. 3(c)(2), inserted references to 
sections 1397a, 1397b, and 1397c.
    Subsec. (b). Pub. L. 93-647, Sec. 3(c)(3), (4), substituted ``1396b, 
or 1397a'' for ``1396b'', and inserted ``or expenditures with respect to 
which payment shall be made under section 1397a of this title'' after 
``administration of such State plan or plans,''.
    1973--Pub. L. 93-233 inserted references in text preceding subsec. 
(a) to subchapter VI of this chapter, in subsec. (a) to section 802 of 
this title, and in subsec. (b) to section 803 of this title.
    1968--Pub. L. 90-248, Sec. 241(c)(4), in opening phrase struck out 
``IV,'' after ``I,'' and inserted ``, or part A of subchapter IV of this 
chapter,'' after ``XIX of this chapter''.
    Pub. L. 90-248, Sec. 247, substituted in second sentence 
``$4,000,000'' for ``$2,000,000'' and ``beginning after June 30, 1967'' 
for ``ending prior to July 1, 1968''.
    1967--Pub. L. 90-36 substituted ``July 1, 1968'' for ``July 1, 
1967''.
    1965--Pub. L. 89-97 included in enumeration in opening phrase, and 
cls. (a) and (b), subchapter XIX of this chapter, and sections 1396a and 
1396b of this title, respectively.


                    Effective Date of 1997 Amendment

    Section 4757(b) of Pub. L. 105-33 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to 
demonstration projects initially approved before, on, or after the date 
of the enactment of this Act [Aug. 5, 1997].''


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-193 effective July 1, 1997, with transition 
rules relating to State options to accelerate such date, rules relating 
to claims, actions, and proceedings commenced before such date, rules 
relating to closing out of accounts for terminated or substantially 
modified programs and continuance in office of Assistant Secretary for 
Family Support, and provisions relating to termination of entitlement 
under AFDC program, see section 116 of Pub. L. 104-193, as amended, set 
out as an Effective Date note under section 601 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-272 effective Oct. 18, 1986, see section 
14001(e) of Pub. L. 99-272.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective July 18, 1984, but not to be 
construed as changing or affecting any right, liability, status, or 
interpretation which existed (under the provisions of law involved) 
before that date, see section 2664(b) of Pub. L. 98-369, set out as a 
note under section 401 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, except as 
otherwise explicitly provided, see section 2354 of Pub. L. 97-35, set 
out as an Effective Date note under section 1397 of this title.


                    Effective Date of 1975 Amendment

    Amendment by Pub. L. 93-647 effective with respect to payments under 
sections 603 and 803 of this title for quarters commencing after Sept. 
30, 1975, see section 7(b) of Pub. L. 93-647, set out as a note under 
section 303 of this title.


                    Effective Date of 1973 Amendment

    Amendment by Pub. L. 93-233 effective on and after Jan. 1, 1974, see 
section 18(z-2)(2) of Pub. L. 93-233, set out as a note under section 
1301 of this title.


                    Effective Date of 1965 Amendment

    Section 121(c)(3) of Pub. L. 89-97 provided that the amendment made 
by that section is effective Jan. 1, 1966.


                  Family Support Demonstration Projects

    Section 501 of Pub. L. 100-485, as amended by Pub. L. 103-432, title 
II, Sec. 262, Oct. 31, 1994, 108 Stat. 4467, provided that:
    ``(a) Demonstration Projects To Test the Effect of Early Childhood 
Development Programs.--(1) In order to test the effect of in-home early 
childhood development programs and pre-school center-based development 
programs (emphasizing the use of volunteers and including academic 
credit for student volunteers) on families receiving aid under State 
plans approved under section 402 of the Social Security Act [section 602 
of this title] and participating in the job opportunities and basic 
skills training program under part F of title IV of such Act [part F of 
subchapter IV of this chapter], up to 10 States may undertake and carry 
out demonstration projects utilizing such development programs to 
enhance the cognitive skills and linguistic ability of children under 
the age of 5, to improve the communications skills of such children, and 
to develop their ability to read, write, and speak the English language 
effectively. Such projects may include parents along with their eligible 
children in family-centered education programs that assist children 
directly in achieving the goals stated in the preceding sentence and 
also help parents contribute to the proper development and education of 
their young children. Demonstration projects under this subsection shall 
meet such conditions and requirements as the Secretary of Health and 
Human Services (in this section referred to as the `Secretary') shall 
prescribe, and no such project shall be conducted for a period of more 
than 3 years.
    ``(2) The Secretary shall consider all applications received from 
States desiring to conduct demonstration projects under this subsection, 
shall approve up to 10 applications involving projects which appear 
likely to contribute significantly to the achievement of the purpose of 
this subsection, and shall make grants to the States whose applications 
are approved to assist them in carrying out such projects.
    ``(3) The Secretary shall submit to the Congress with respect to 
each project undertaken by a State under this subsection, after such 
project has been carried out for one year and again when such project is 
completed, a detailed evaluation of the project and of its contribution 
to the achievement of the purpose of this subsection.
    ``(4) For grants to States to conduct demonstration projects under 
this subsection, there are authorized to be appropriated not to exceed 
$3,000,000 for each of the fiscal years 1995 through 1999.
    ``(b) State Demonstration Projects To Encourage Innovative Education 
and Training Programs for Children.--In order to encourage States to 
develop innovative education and training programs for children 
receiving aid under State plans approved under section 402 of the Social 
Security Act [section 602 of this title], any State may establish and 
conduct one or more demonstration projects, targeted to such children, 
designed to test financial incentives and interdisciplinary approaches 
to reducing school dropouts, encouraging skill development, and avoiding 
welfare dependence; and the Secretary may make grants to States to 
assist in financing such projects. Demonstration projects under this 
subsection shall meet such conditions and requirements as the Secretary 
shall prescribe, and no such project shall be conducted for a period of 
less than one year or more than 5 years.
    ``(c) Demonstrations To Ensure Long Term Family Self-Sufficiency 
Through Community-Based Services.--Any State, using funds made available 
to it from appropriations made pursuant to subsection (d) in conjunction 
with its other resources, may conduct demonstrations to test more 
effective methods of providing coordination and services to ensure long 
term family self-sufficiency through community-based comprehensive 
family support services involving a partnership between the State agency 
administering or supervising the administrating of the State's plan 
under section 402 of the Social Security Act [section 602 of this title] 
and community-based organizations having experience and demonstrated 
effectiveness in providing services.
    ``(d) Authorization of Appropriations.--For the purpose of making 
grants to States to conduct demonstration projects under this section, 
there is authorized to be appropriated not to exceed $6,000,000 for each 
of the fiscal years 1990, 1991, and 1992.''


 Demonstration Projects To Encourage States To Employ Parents Receiving 
                    AFDC as Paid Child Care Providers

    Section 502 of Pub. L. 100-485 authorized Secretary of Health and 
Human Services to permit up to 5 States to undertake and carry out 
demonstration projects designed to test whether employment of parents of 
dependent children receiving AFDC as providers of child care for other 
children receiving AFDC would effectively facilitate the conduct of the 
job opportunities and basic skills training program under part F of 
title IV of this chapter by making additional child care services 
available to meet the requirements of section 602(g)(1)(A) of this title 
while affording significant numbers of families receiving such aid a 
realistic opportunity to avoid welfare dependence through employment as 
a child care provider, and authorized to be appropriated not to exceed 
$1,000,000 for each of the fiscal years 1990, 1991, and 1992 for grants 
to States to carry out such demonstration projects.


         Demonstration Projects To Address Child Access Problems

    Section 504 of Pub. L. 100-485 provided that any State could 
establish and conduct one or more demonstration projects (in accordance 
with such terms, conditions, and requirements prescribed by the 
Secretary of Health and Human Services, except that no such project 
could include the withholding of aid to families with dependent children 
pending visitation) to develop, improve, or expand activities designed 
to increase compliance with child access provisions of court orders, 
specified activities that could be funded by a grant under this section, 
authorized to be appropriated not to exceed $4,000,000 for each of the 
fiscal years 1990 and 1991, and directed Secretary of Health and Human 
Services, not later than July 1, 1992, to submit to Congress a report on 
the effectiveness of the demonstration projects established under this 
section.


 Demonstration Projects To Provide Counseling and Services to High-Risk 
                                Teenagers

    Section 506 of Pub. L. 100-485 provided that:
    ``(a) Findings and Purpose.--(1) The Congress finds that--
        ``(A) the incidences of teenage pregnancy, suicide, substance 
    abuse, and school dropout are increasing;
        ``(B) research to date has established a link between low self-
    esteem, perceived limited life options and the risk of teenage 
    pregnancy, suicide, substance abuse, and school dropout;
        ``(C) little data currently exists on how to improve the self-
    image of and expand the life options available to high-risk 
    teenagers; and
        ``(D) there currently is no Federal program in place to address 
    the unique and significant problems faced by today's teenagers.
    ``(2) It is the purpose of the demonstration projects conducted 
under this section to provide programs in which a range of non-academic 
services (sports, recreation, the arts) and self-image counseling are 
provided to high-risk teenagers in order to reduce the rates of 
pregnancy, suicide, substance abuse, and school dropout among such 
teenagers.
    ``(b) In General.--The Secretary of Health and Human Services (in 
this section referred to as the `Secretary') shall enter into an 
agreement with each of 4 States submitting applications under this 
section for the purpose of conducting demonstration projects in 
accordance with this section to provide counseling and services to 
certain high-risk teenagers.
    ``(c) Nature of Project.--Under each demonstration project conducted 
under this section--
        ``(1) The State shall establish a `Teen Care Plan' that shall 
    consist of the following:
            ``(A) A clearing house where high-risk teenagers will be 
        referred to and encouraged to participate in non-academic 
        activities (arts, recreation, sports) which are already in place 
        in the community.
            ``(B) A survey of the area to be targeted by the project to 
        determine the need to fund and create new non-academic 
        activities in the area.
            ``(C) Counseling services utilizing qualified, locally 
        licensed psychologists, social psychologists, or other mental 
        health professionals or related experts to provide individual 
        and group counseling to participating high-risk teenagers.
            ``(D) A program to provide participants in the project (to 
        the extent practicable) with such transportation, child care, 
        and equipment as is necessary to carry out the purposes of the 
        project.
        ``(2) The State shall designate two geographical areas within 
    the State to be targeted by the project. One area will serve as the 
    `home base' for the project, where services will be concentrated and 
    in which a local school system will be selected to receive services 
    and provide facilities for resource referral and counseling. The 
    second geographical area will serve as a `peripheral' participant, 
    receiving assistance and services from the home base.
        ``(3) A high-risk teenager is any male or female who has reached 
    the age of 10 years and whose age does not exceed 20 years, and 
    who--
            ``(A) has a history of academic problems;
            ``(B) has a history of behavioral problems both in and out 
        of school;
            ``(C) comes from a one-parent household; or
            ``(D) is pregnant or is a mother of a child.
    ``(d) Applications; Selection Criteria.--(1) In selecting States to 
conduct demonstration projects under this section, the Secretary--
        ``(A) shall consult with the Consortium on Adolescent Pregnancy;
        ``(B) shall consider--
            ``(i) the rate of teenage pregnancy in each State,
            ``(ii) the teenage school dropout rate in each State,
            ``(iii) the incidence of teenage substance abuse in each 
        State, and
            ``(iv) the incidence of teenage suicide in each State; and
        ``(C) shall give priority to States whose applications--
            ``(i) demonstrate a current strong State commitment aimed at 
        reducing teenage pregnancy, suicide, drug abuse, and school 
        dropout;
            ``(ii) contain a `State support agreement' signed by the 
        Governor, the State School Commissioner, the State Department of 
        Human Services, and the State Department of Education, pledging 
        their commitment to the project;
            ``(iii) describe facilities and services to be made 
        available by the State to assist in carrying out the project; 
        and
            ``(iv) indicate a demonstrably high rate of alcoholism among 
        its residents.
    ``(2) Of the States selected to participate in the demonstration 
projects conducted under this section--
        ``(A) one shall be a geographically small State with a 
    population of less than 1,250,000;
        ``(B) one shall be a State with a population of over 20,000,000; 
    and
        ``(C) two shall be States with populations of more than 
    1,000,000 but less than 20,000,000.
    ``(e) Evaluation and Report.--(1) Each State conducting a 
demonstration project under this section shall submit to the Secretary 
for his approval an evaluation plan that provides for examining the 
effectiveness of the project in both the home base and peripheral area 
of the State.
    ``(2) Not later than October 1, 1992, the Secretary shall submit to 
the Congress a report containing a summary of the evaluations conducted 
by States pursuant to the plans described in paragraph (1).
    ``(f) Funding.--(1) Three-fifths of the total amount appropriated 
pursuant to this section for any fiscal year for each State conducting a 
demonstration project shall be expended by such State for the provision 
of services and facilities within the State's designated project home 
base, and 5 percent of such three-fifths shall be set aside for the 
conduct of the State's evaluation as provided for in subsection (e).
    ``(2) Two-fifths of the total amounts appropriated pursuant to this 
section for any fiscal year for each State conducting a demonstration 
project shall be expended by such State for the provision of services 
and facilities within the State's designated peripheral area, and 5 
percent of such two-fifths shall be set aside for the conduct of the 
State's evaluation as provided for in subsection (e).
    ``(g) Duration.--A demonstration project conducted under this 
section shall be commenced not later than September 30, 1989, and shall 
be conducted for a 3-year period; except that the Secretary may 
terminate a project before the end of such period if he determines that 
the State conducting the project is not in substantial compliance with 
the terms of the agreement entered into with the Secretary under this 
section.
    ``(h) Authorization of Appropriations.--For the purpose of funding 
in equal amounts each State demonstration project conducted under this 
section, there is authorized to be appropriated not to exceed $1,500,000 
for each of the fiscal years 1990, 1991, and 1992.''


Continuation of Federal Financial Participation in Experimental, Pilot, 
 or Demonstration Projects Approved Before October 1, 1973, for Period 
 On-And-After December 31, 1973, Without Denial or Reduction on Account 
 of Subchapter XVI Provisions for Supplemental Security Income for the 
  Aged, Blind and Disabled; Waiver of Subchapter XVI Restrictions for 
  Individuals; Federal Payments of Non-Federal Share as Supplementary 
                                Payments

    Section 11 of Pub. L. 93-233 provided that:
    ``(a) If any State (other than the Commonwealth of Puerto Rico, the 
Virgin Islands, or Guam) has any experimental, pilot, or demonstration 
project (referred to in section 1115 of the Social Security Act [this 
section])--
        ``(1) which (prior to October 1, 1973) has been approved by the 
    Secretary of Health, Education, and Welfare [now Health and Human 
    Services] (hereinafter in this section referred to as the 
    `Secretary'), for a period which ends on or after December 31, 1973, 
    as being a project with respect to which the authority conferred 
    upon him by subsection (a) or (b) of such section 1115 [subsec. (a) 
    or (b) of this section] will be exercised, and
        ``(2) with respect to the costs of which Federal financial 
    participation would (except for the provisions of this section) be 
    denied or reduced on account of the enactment of section 301 of the 
    Social Security Amendments of 1972 [enacting subchapter XVI of this 
    chapter],
then, for any period (after December 31, 1973) with respect to which 
such project is approved by the Secretary, Federal financial 
participation in the costs of such project shall be continued in like 
manner as if--
        ``(3) such section 301 [enacting subchapter XVI of this chapter] 
    had not been enacted, and
        ``(4) such State (for the month of January 1974 and any month 
    thereafter) continued to have in effect the State plan (approved 
    under title XVI [subchapter XVI of this chapter]) which was in 
    effect for the month of October 1973, or the State plans (approved 
    under titles I, X, and XIV of the Social Security Act [subchapters 
    I, X, and XIV of this chapter]) which were in effect for such month, 
    as the case may be.
    ``(b) With respect to individuals--
        ``(1) who are participants in any project to which the 
    provisions of subsection (a) are applicable, and
        ``(2) with respect to whom supplemental security income benefits 
    are (or would, except for their participation in such project, be) 
    payable under title XVI of the Social Security Act, or who meet the 
    requirements for aid or assistance under a State plan approved under 
    title I, X, XIV, or XVI of the Social Security Act of the State in 
    which such project is conducted (as such State plan was in effect 
    for July 1973),
the Secretary may waive such requirements of title XVI of such Act (as 
enacted by section 301 of the Social Security Amendments of 1972) to 
such extent as he determines to be necessary to the successful operation 
of such project.
    ``(c) In the case of any State which has entered into an agreement 
with the Secretary under section 1616 of the Social Security Act 
[section 1382e of this title] (or which is deemed, under section 212(d) 
of Public Law 93-66 [set out as a note under section 1382 of this 
title], to have entered into such an agreement), then, of the costs of 
any project of such State with respect to which there is (solely by 
reason of the provisions of subsection (a)) Federal financial 
participation, the non-Federal share thereof shall--
        ``(1) be paid, from time to time, to such State by the 
    Secretary, and
        ``(2) shall, for purposes of section 1616(d) of the Social 
    Security Act [section 1382e(d) of this title] and section 401 of the 
    Social Security Amendments of 1972 [set out as a note under section 
    1382e of this title] be treated in like manner as if such non-
    Federal share were supplementary payments made by the Secretary on 
    behalf of such State pursuant to such agreement.''

                  Section Referred to in Other Sections

    This section is referred to in sections 613, 615, 652, 655, 1396a, 
1396b, 1396d, 1396r-5, 1396r-6, 1396t, 1397gg of this title.
