SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare-to-Work Incentives Act of 
1994''.

SEC. 2. APPLICATION FOR WAIVERS NECESSARY TO DISREGARD PRIVATE SECTOR 
              INCOME.

    Any entity that administers a welfare program in a State or a 
political subdivision of a State may submit to the Secretary an 
application that contains the following:
            (1) Request for waiver.--A request that compliance by the 
        applicant with any Federal statutory or regulatory requirement 
        be waived to the extent necessary to enable the applicant in 
        determining eligibility for, or amount of, benefits under the 
        program to disregard private sector income in accordance with 
        rules set forth in the application.
            (2) Geographic area.--The geographic area in which the 
        waiver is requested to apply.
            (3) Recipients.--The particular groups of individuals, by 
        age, service needs, economic circumstances, or other defining 
        factors, with respect to whom the waiver is requested to apply.
            (4) Objectives and performance criteria.--Specific 
        objectives and criteria for measuring levels of performance 
        under the program during the period for which the waiver is 
        requested to apply, a description of how such objectives and 
        levels of performance are expected to be achieved, a 
        description of how such criteria are to be used to measure 
        performance, and a system for the comprehensive evaluation of 
        the impact of the waiver on participants, on the community, and 
        on costs.
            (5) Covered program.--The welfare program to which the 
        waiver is requested to apply, and the criteria for determining 
        eligibility for benefits under the program.
            (6) Fiscal control and accountability.--Fiscal control and 
        related accountability procedures that are to apply under the 
        program during the period for which the waiver is requested to 
        apply.
            (7) Waiver period.--The period during which the waiver is 
        requested to be in effect.
            (8) Other information.--Any other information the Secretary 
        may require to approve the application.

SEC. 3. REVIEW AND APPROVAL OF APPLICATIONS; WAIVERS.

    (a) Review.--Upon receipt of an application submitted in accordance 
with section 2, the Secretary shall--
            (1) approve or disapprove the application within 90 days 
        after such receipt;
            (2) notify the applicant in writing of such approval or 
        disapproval; and
            (3) if the application is disapproved, include in the 
        notice of disapproval a written justification of the reasons 
        therefor.
    (b) Conditional Approval.--The Secretary may condition approval of 
such an application on the acceptance by the applicant of specific 
modifications to the application.
    (c) Approval.--
            (1) Requirements.--The Secretary shall approve such an 
        application, subject to paragraph (2), if the Secretary 
        determines that--
                    (A) granting the waiver requested in the 
                application will improve the effectiveness of the 
                covered program;
                    (B) the applicant has adequately considered, and 
                the application appropriately addresses, the effects 
                that the administration of the covered program will 
                have on the administration of any other welfare 
                program; and
                    (C) the applicant has or is developing data bases, 
                planning, and evaluation processes that are adequate 
                for operating the covered program under the waiver and 
                evaluating the effects of the waiver.
            (2) Limitation.--The Secretary may not approve such an 
        application with respect to a covered program if the Secretary 
        determines that, over time, the operation of the covered 
        program under the waiver requested in the application will 
        result in a net cost to the Federal Government. In making the 
        determination, the Secretary shall take into account the 
        estimated benefits of the covered program, including any 
        resulting reduction in the costs of other welfare programs and 
        any resulting increase in Federal revenues.
            (3) Implementation period.--In approving such an 
        application, the Secretary shall specify the period during 
        which the waiver is to apply to the covered program.
    (d) Waivers.--If the Secretary approves an application for the 
waiver under subsection (c), the Secretary shall, subject to this 
subsection, waive compliance by the applicant with any requirement of 
Federal law or regulation that would prevent the applicant from 
disregarding private sector income in determining eligibility for, or 
amount of, benefits under the covered program.

SEC. 4. EVALUATIONS.

    (a) In General.--Any entity whose application is approved under 
this Act shall, in accordance with regulations issued by the 
Secretary--
            (1) submit such reports on, and cooperate in such audits 
        of, the implementation of the assistance plan contained in the 
        application; and
            (2) periodically evaluate the effects that implementation 
        of the plan has had on--
                    (A) individuals who receive benefits under the 
                covered program included in the plan;
                    (B) communities where such individuals live; and
                    (C) costs of administering the covered program 
                included in the plan.
    (b) Annual Reports.--Not later than 90 days after the end of the 1-
year period beginning on the date an application is approved under this 
Act, and annually thereafter, the applicant shall submit to the 
Secretary a report on the principal activities and achievements under 
the covered program operated in accordance with the approved 
application during the period covered by the report, and the report 
shall compare those achievements to the objectives and performance 
criteria included in the application pursuant to section 2(4).
    (c) Final Report.--Not later than 45 days after the end of the 
period for which the Secretary has initially authorized an applicant to 
operate a covered program in accordance with an approved application 
under this Act, or at any time that the applicant determines that the 
plan has demonstrated its worth and proven to be a superior way to 
provide benefits under the covered program, the entity shall submit to 
the Secretary a final report on such implementation, including a full 
evaluation of the successes and shortcomings of the covered program as 
so operated and the effects of such implementation on individuals who 
receive benefits under the covered program.
    (d) Extension of Plans.--The Secretary may extend, for such period 
as may be appropriate, the period for which an applicant may operate a 
covered program in accordance with an approved application under this 
Act, based on the report of the applicant under subsection (c).
    (e) Suspension and Termination.--
            (1) In general.--The Secretary may suspend or terminate the 
        effectivenesss of any waiver granted under this Act with 
        respect to a covered program if the Secretary determines that--
                    (A) the applicant has failed to carry out the 
                covered program in accordance with any applicable 
                provision of law or regulation; or
                    (B) the objectives and performance criteria 
                included in the application pursuant to section 2(4) 
                have not been met.
            (2) Timing.--In suspending or terminating waiver under 
        paragraph (1), the Secretary shall allow a reasonable period of 
        time for appropriate Federal, State, and local agencies to 
        resume administration of the covered program in accordance with 
        otherwise applicable law.

SEC. 5. DEFINITIONS.

    As used in this Act:
            (1) Covered program.--The term ``covered program'' means, 
        with respect to an application for a waiver, the welfare 
        program to which the application requests the waiver to apply.
            (2) Secretary.--The term ``Secretary'' means, with respect 
        to a covered program, the Secretary of Health and Human 
        Services and the head of the Federal agency responsible for the 
        administration of the covered program.
            (3) State.--
                    (A) In general.--The term ``State'' means the 50 
                States, the District of Columbia, Puerto Rico, American 
                Samoa, Guam, and the Virgin Islands.
                    (B) Indian tribes.--In the case of a welfare 
                program under which assistance is provided with respect 
                to an Indian tribe, the Indian tribal organization is 
                deemed to be a State.
            (4) Welfare program.--The term ``welfare program'' means 
        any Federal or federally assisted program eligibility for which 
        is based, in whole or in part, on financial need.

SEC. 6. REPORTS.

    (a) In General.--The Comptroller General of the United States shall 
submit to the Congress 2 reports that--
            (1) describe the extent to which welfare programs have been 
        operated in accordance with waivers granted under this Act;
            (2) evaluate the effectiveness of the welfare programs as 
        so operated; and
            (3) include recommendations with respect to whether to 
        continue activities under this Act.
    (b) Timing.--The Comptroller General shall submit a report under 
subsection (a) not later than 3 years after the date of the enactment 
of this Act, and another such report not later than 6 years after such 
date of enactment.

SEC. 7. SUNSET.

    Any authority provided under this Act shall expire 7 years after 
the date of the enactment of this Act.
Welfare-to-Work Incentives Act of 1994 - Authorizes any State or local welfare program administering entity to apply to the Secretary of Health and Human Services for a waiver of compliance with any Federal statutory or regulatory requirement to the extent necessary to enable the applicant in determining eligibility for, or amount of, benefits under the program to disregard private sector income in accordance with rules set forth in the application. 
Specifies contents of a waiver application. 
Requires the Secretary to approve or disapprove an application within 90 days after receipt.  Specifies approval procedures. 
Requires periodic evaluations by an entity with a waiver of the effects of plan implementation on benefit recipients, their communities, and the costs of administering the covered program. 
Provides for suspension or termination of a waiver.
Welfare-to-Work Incentives Act of 1994