
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1320a-9]

 
                 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. 1320a-9. Demonstration projects


(a) Authority to approve demonstration projects

                           (1) In general

        The Secretary may authorize States to conduct demonstration 
    projects pursuant to this section which the Secretary finds are 
    likely to promote the objectives of part B or E of subchapter IV of 
    this chapter.

                           (2) Limitation

        The Secretary may authorize not more than 10 demonstration 
    projects under paragraph (1) in each of fiscal years 1998 through 
    2002.

      (3) Certain types of proposals required to be considered

        (A) If an appropriate application therefor is submitted, the 
    Secretary shall consider authorizing a demonstration project which 
    is designed to identify and address barriers that result in delays 
    to adoptive placements for children in foster care.
        (B) If an appropriate application therefor is submitted, the 
    Secretary shall consider authorizing a demonstration project which 
    is designed to identify and address parental substance abuse 
    problems that endanger children and result in the placement of 
    children in foster care, including through the placement of children 
    with their parents in residential treatment facilities (including 
    residential treatment facilities for post-partum depression) that 
    are specifically designed to serve parents and children together in 
    order to promote family reunification and that can ensure the health 
    and safety of the children in such placements.
        (C) If an appropriate application therefor is submitted, the 
    Secretary shall consider authorizing a demonstration project which 
    is designed to address kinship care.

                    (4) Limitation on eligibility

        The Secretary may not authorize a State to conduct a 
    demonstration project under this section if the State fails to 
    provide health insurance coverage to any child with special needs 
    (as determined under section 673(c) of this title) for whom there is 
    in effect an adoption assistance agreement between a State and an 
    adoptive parent or parents.

     (5) Requirement to consider effect of project on terms and 
                     conditions of certain court orders

        In considering an application to conduct a demonstration project 
    under this section that has been submitted by a State in which there 
    is in effect a court order determining that the State's child 
    welfare program has failed to comply with the provisions of part B 
    or E of subchapter IV of this chapter, or with the Constitution of 
    the United States, the Secretary shall take into consideration the 
    effect of approving the proposed project on the terms and conditions 
    of the court order related to the failure to comply.

(b) Waiver authority

    The Secretary may waive compliance with any requirement of part B or 
E of subchapter IV of this chapter which (if applied) would prevent a 
State from carrying out a demonstration project under this section or 
prevent the State from effectively achieving the purpose of such a 
project, except that the Secretary may not waive--
        (1) any provision of section 627 of this title (as in effect 
    before April 1, 1996), section 622(b)(9) of this title (as in effect 
    after such date), or section 679 of this title; or
        (2) any provision of such part E, to the extent that the waiver 
    would impair the entitlement of any qualified child or family to 
    benefits under a State plan approved under such part E.

(c) Treatment as program expenditures

    For purposes of parts B and E of subchapter IV of this chapter, the 
Secretary shall consider the expenditures of any State to conduct a 
demonstration project under this section to be expenditures under 
subpart 1 or 2 of such part B, or under such part E, as the State may 
elect.

(d) Duration of demonstration

    A demonstration project under this section may be conducted for not 
more than 5 years, unless in the judgment of the Secretary, the 
demonstration project should be allowed to continue.

(e) Application

    Any State seeking to conduct a demonstration project under this 
section shall submit to the Secretary an application, in such form as 
the Secretary may require, which includes--
        (1) a description of the proposed project, the geographic area 
    in which the proposed project would be conducted, the children or 
    families who would be served by the proposed project, and the 
    services which would be provided by the proposed project (which 
    shall provide, where appropriate, for random assignment of children 
    and families to groups served under the project and to control 
    groups);
        (2) a statement of the period during which the proposed project 
    would be conducted;
        (3) a discussion of the benefits that are expected from the 
    proposed project (compared to a continuation of activities under the 
    approved plan or plans of the State);
        (4) an estimate of the costs or savings of the proposed project;
        (5) a statement of program requirements for which waivers would 
    be needed to permit the proposed project to be conducted;
        (6) a description of the proposed evaluation design; and
        (7) such additional information as the Secretary may require.

(f) Evaluations; report

    Each State authorized to conduct a demonstration project under this 
section shall--
        (1) obtain an evaluation by an independent contractor of the 
    effectiveness of the project, using an evaluation design approved by 
    the Secretary which provides for--
            (A) comparison of methods of service delivery under the 
        project, and such methods under a State plan or plans, with 
        respect to efficiency, economy, and any other appropriate 
        measures of program management;
            (B) comparison of outcomes for children and families (and 
        groups of children and families) under the project, and such 
        outcomes under a State plan or plans, for purposes of assessing 
        the effectiveness of the project in achieving program goals; and
            (C) any other information that the Secretary may require; 
        and

        (2) provide interim and final evaluation reports to the 
    Secretary, at such times and in such manner as the Secretary may 
    require.

(g) Cost neutrality

    The Secretary may not authorize a State to conduct a demonstration 
project under this section unless the Secretary determines that the 
total amount of Federal funds that will be expended under (or by reason 
of) the project over its approved term (or such portion thereof or other 
period as the Secretary may find appropriate) will not exceed the amount 
of such funds that would be expended by the State under the State plans 
approved under parts B and E of subchapter IV of this chapter if the 
project were not conducted.

(Aug. 14, 1935, ch. 531, title XI, Sec. 1130, as added Pub. L. 103-432, 
title II, Sec. 208, Oct. 31, 1994, 108 Stat. 4457; amended Pub. L. 105-
89, title III, Sec. 301(a), (c), Nov. 19, 1997, 111 Stat. 2127, 2128.)

                       References in Text

    Parts B and E of subchapter IV of this chapter, referred to in 
subsecs. (a) to (c) and (g), are classified to sections 620 et seq. and 
670 et seq., respectively, of this title.
    Section 627 of this title, referred to in subsec. (b)(1), was 
repealed by Pub. L. 103-432, title II, Sec. 202(c), Oct. 31, 1994, 108 
Stat. 4454.


                            Prior Provisions

    A prior section 1130 of act Aug. 14, 1935, was classified to section 
1320b of this title prior to repeal by Pub. L. 93-647, Sec. 3(e)(1), 
Jan. 4, 1975, 88 Stat. 2349.


                               Amendments

    1997--Subsec. (a). Pub. L. 105-89, Sec. 301(a), amended heading and 
text of subsec. (a) generally. Prior to amendment, text read as follows: 
``The Secretary may authorize not more than 10 States to conduct 
demonstration projects pursuant to this section which the Secretary 
finds are likely to promote the objectives of part B or E of subchapter 
IV of this chapter.''
    Subsec. (d). Pub. L. 105-89, Sec. 301(c), inserted before period at 
end ``, unless in the judgment of the Secretary, the demonstration 
project should be allowed to continue''.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-89 effective Nov. 19, 1997, except as 
otherwise provided, with delay permitted if State legislation is 
required, see section 501 of Pub. L. 105-89, set out as a note under 
section 622 of this title.


                     Construction of 1997 Amendment

    Section 301(b) of Pub. L. 105-89 provided that: ``Nothing in the 
amendment made by subsection (a) [amending this section] shall be 
construed as affecting the terms and conditions of any demonstration 
project approved under section 1130 of the Social Security Act (42 
U.S.C. 1320a-9) before the date of the enactment of this Act [Nov. 19, 
1997].''
