I
103D CONGRESS
2D SESSION
H. R. 5011
To authorize the waiver of such provisions of law as may be necessary
to enable a limited amount of private sector earnings to be disregarded
in determining eligibility for assistance under welfare programs.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 21, 1994
Mr. BARCA of Wisconsin (for himself, Mr. SWETT, Ms. MCKINNEY, Mr.
NADLER, Mr. BARRETT of Wisconsin, and Mr. HINCHEY) introduced the
following bill; which was referred to the Committee on Government Oper-
ations
A BILL
To authorize the waiver of such provisions of law as may
be necessary to enable a limited amount of private sector
earnings to be disregarded in determining eligibility for
assistance under welfare programs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Welfare-to-Work In-
centives Act of 1994’’.
SEC. 2. APPLICATION FOR WAIVERS NECESSARY TO DIS-
REGARD 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 statu-
tory or regulatory requirement be waived to the ex-
tent necessary to enable the applicant in determining
eligibility for, or amount of, benefits under the pro-
gram to disregard private sector income in accord-
ance 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 in-
dividuals, by age, service needs, economic cir-
cumstances, or other defining factors, with respect
to whom the waiver is requested to apply.
(4) OBJECTIVES
AND
PERFORMANCE
CRI-
TERIA.—Specific objectives and criteria for measur-
ing 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 de-
scription of how such criteria are to be used to
measure performance, and a system for the com-
prehensive 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 pe-
riod 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 informa-
tion the Secretary may require to approve the appli-
cation.
SEC. 3. REVIEW AND APPROVAL OF APPLICATIONS; WAIV-
ERS.
(a) REVIEW.—Upon receipt of an application submit-
ted 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 ap-
proval 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 accept-
ance by the applicant of specific modifications to the appli-
cation.
(c) APPROVAL.—
(1) REQUIREMENTS.—The Secretary shall ap-
prove 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 consid-
ered, and the application appropriately address-
es, the effects that the administration of the
covered program will have on the administra-
tion 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 ap-
prove 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, in-
cluding any resulting reduction in the costs of other
welfare programs and any resulting increase in Fed-
eral 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 applica-
tion 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 regula-
tion 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 regula-
tions 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 imple-
mentation 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 pro-
gram 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 ap-
plication is approved under this Act, and annually there-
after, the applicant shall submit to the Secretary a report
on the principal activities and achievements under the cov-
ered program operated in accordance with the approved
application during the period covered by the report, and
the report shall compare those achievements to the objec-
tives 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 suc-
cesses and shortcomings of the covered program as so op-
erated and the effects of such implementation on individ-
uals who receive benefits under the covered program.
(d) EXTENSION OF PLANS.—The Secretary may ex-
tend, 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 ap-
plicable 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 admin-
istration 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 applica-
tion requests the waiver to apply.
(2) 
SECRETARY.—The 
term 
‘‘Secretary’’
means, with respect to a covered program, the Sec-
retary of Health and Human Services and the head
of the Federal agency responsible for the administra-
tion 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 wel-
fare program under which assistance is pro-
vided with respect to an Indian tribe, the In-
dian 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 pro-
grams have been operated in accordance with waiv-
ers granted under this Act;
(2) evaluate the effectiveness of the welfare pro-
grams 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.