I
104TH CONGRESS
1ST SESSION
H. R. 781
To allow State and local governments to design their own programs for
moving welfare recipients from dependency to economic self-sufficiency,
and to allow low-income individuals to use personal savings as a founda-
tion for achieving independence.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 1, 1995
Mr. WELDON of Pennsylvania (for himself and Mr. ANDREWS) introduced the
following bill; which was referred to the Committee on Ways and Means
and, in addition, to the Committees on Agriculture, Economic and Edu-
cational Opportunities, Banking and Financial Services, and Commerce,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To allow State and local governments to design their own
programs for moving welfare recipients from dependency
to economic self-sufficiency, and to allow low-income indi-
viduals to use personal savings as a foundation for
achieving independence.
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 Innovation
and Empowerment Act of 1995’’.
TITLE 
I—STATE 
AND 
LOCAL
WELFARE-TO-WORK 
DEM-
ONSTRATION PROJECTS
SEC. 101. INTERAGENCY WAIVER REQUEST BOARD.
(a) ESTABLISHMENT AND PURPOSE.—In order to
streamline and expedite Federal Government approval of
State requests to conduct demonstration projects under
which eligible Federal programs may be consolidated into
a single program or programs designed to move welfare
recipients from welfare to work, there is established an
Interagency Waiver Request Board.
(b) MEMBERSHIP.—The Board shall consist of 8
members, as follows:
(1) 1 individual appointed by the President
from the White House Domestic Policy Council.
(2) The Secretary of Health and Human Serv-
ices (or the designee of the Secretary).
(3) The Secretary of Agriculture (or the des-
ignee of the Secretary).
(4) The Secretary of Labor (or the designee of
the Secretary).
(5) The Secretary of Housing and Urban Devel-
opment (or the designee of the Secretary).
(6) The Secretary of Education (or the designee
of the Secretary).
(7) The Secretary of the Interior (or the des-
ignee of the Secretary).
(8) The Director of the Office of Management
and Budget (or the designee of the Director).
(c) CHAIRPERSON.—The member of the Board ap-
pointed under subsection (b)(1) shall serve as Chairperson
of the Board.
(d) VACANCIES.—A vacancy in the position of Chair-
man shall be filled in the manner in which the original
appointment was made.
(e) NO ADDITIONAL COMPENSATION.—The members
of the Board may not be provided additional pay, allow-
ances, or benefits by reason of their service on the Board.
(f) POWERS.—
(1) ASSISTANCE
OF
OTHER
FEDERAL
ENTI-
TIES.—A member of the Board shall detail to the
Chairperson, on a nonreimbursable basis, such offi-
cers and employees of the department or agency
headed by the member, and shall make available to
the Chairperson such assistance, as the Chairperson
may require to carry out the activities of the Chair-
person.
(2) USE
OF
UNITED
STATES
MAILS.—The
Chairperson may use the United States mails in the
same manner and under the same conditions as
other departments and agencies of the United
States.
(g) PROCEDURE.—
(1) MEETINGS.—The Board shall meet at the
call of the Chairperson or of at least 3 members.
(2) NOTICE OF DECISIONS.—The Chairperson
shall provide the Board with advance notice of any
action that the Chairperson intends to take under
this title.
(3) POWER OF BOARD MAJORITY TO OVERRULE
CHAIRPERSON.—Notwithstanding any other provi-
sion of this title, a majority of the members of the
Board with respect to a matter may overrule any de-
cision or nullify any action of the Chairperson under
this title with respect to the matter.
(h) ANNUAL
REPORTS.—The Chairperson shall
transmit annually to the Congress a report containing a
detailed statement of the activities of the Board during
the year covered by the report.
SEC. 102. APPLICATION TO IMPLEMENT DEMONSTRATION
PROJECTS.
Any State desiring to implement a welfare-to-work
demonstration project using funds or assistance from eligi-
ble Federal programs may submit to the Chairperson an
application that contains the following:
(1) PLAN.—A plan that sets forth the following:
(A) GEOGRAPHIC AREA.—The geographic
area in which the demonstration project is to be
conducted and the rationale for so defining the
area.
(B) RECIPIENTS.—The particular groups
of individuals, by age, service needs, economic
circumstances, or other defining factors, who
are to receive services and benefits under the
plan.
(C) OBJECTIVES AND PERFORMANCE CRI-
TERIA.—Specific objectives and criteria for
measuring levels of performance, a description
of how such objectives and levels of perform-
ance are expected to be achieved, a description
of how such criteria are to be used to measure
performance, and a system for the comprehen-
sive evaluation of the impact of the demonstra-
tion project on participants, the community,
and the costs of conducting the project.
(D) COVERED PROGRAMS.—
(i) IN
GENERAL.—The eligible Fed-
eral programs through which funds or as-
sistance are to be provided to implement
the plan, and the specific benefits that are
to be provided under the plan pursuant to
the program or programs, including cri-
teria for determining eligibility for benefits
under the plan, the services available, the
amounts and form (such as cash, in-kind
contributions, or financial instruments) of
non-service benefits.
(ii) TIME-LIMITED AFDC BENEFITS.—
If the plan includes the program specified
in section 106(4)(A), the plan may include
a commitment to deny benefits under the
program to any individual who has—
(I) received cash assistance under
the program for such period of not
less than 1 year as the State deems
appropriate, and participated in work
activities under the program for such
additional period of not less than 1
year as the State deems appropriate;
or
(II) 
received 
cash 
assistance
under the program for such period of
not less than 2 years as the State
deems appropriate.
(E) PROVISIONS OF LAW TO BE WAIVED.—
A list of the provisions of law or regulation
which prevent the State from implementing the
plan.
(F) SOURCES OF NON-FEDERAL FUNDS.—
A description of the sources of all non-Federal
funds that are to be used to carry out the pro-
gram or programs referred to in subparagraph
(D).
(G) FISCAL CONTROL AND ACCOUNTABIL-
ITY.—Fiscal control and related accountability
procedures that are to apply under the plan.
(2) ASSURANCES.—
(A) PROVISION OF PLAN TO AFFECTED OR-
GANS OF GOVERNMENT IN THE STATE.—Assur-
ances that a copy of the plan has been provided
to all affected organs of government in the geo-
graphic area referred to in paragraph (1)(A).
(B) CONSULTATION WITH POTENTIAL PAR-
TICIPANTS.—Assurances that a committee es-
tablished under section 105 has participated in
the development of the plan.
(3) REQUEST FOR AUTHORITY TO IMPLEMENT
PLAN.—A request that the Chairperson authorize
the applicant to implement the plan, and waive the
application of any Federal statutory or regulatory
requirement to the extent necessary to enable such
implementation.
(4) OTHER INFORMATION.—Any other informa-
tion the Chairperson may require to approve the ap-
plication.
SEC. 103. REVIEW AND APPROVAL OF APPLICATIONS;
WAIVERS.
(a) REVIEW.—Upon receipt of an application submit-
ted in accordance with section 102, the Chairperson
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 Chairperson may
condition approval of such an application on the accept-
ance by the applicant, and by any parties whose consent
or approval is required under section 102, of specified
modifications to the application.
(c) APPROVAL.—
(1) REQUIREMENTS.—The Chairperson shall
approve such an application, subject to paragraph
(2), if the Chairperson determines that—
(A) the plan contained in the application is
adequate to ensure that individuals and families
who receive benefits under the covered program
or programs included in the plan will continue
to receive benefits that meet the needs intended
to be met under the program or programs, to
the extent consistent with a commitment made
pursuant to section 102(1)(D)(ii);
(B) implementation of the plan will not re-
sult in an increase in the total amount of obli-
gations or outlays of discretionary appropria-
tions or direct spending under the covered pro-
gram or programs included in the plan, over the
amounts of such obligations and outlays that
would occur under the program or programs
without implementation of the plan; and
(C) the applicant has designed an evalua-
tion process that is adequate for assessing per-
formance of the demonstration project once im-
plemented.
(2) IMPLEMENTATION
PERIOD.—Subject to
subsections (e)(2) and (f)(1) of section 104(e), a
demonstration project approved by the Chairperson
may be conducted for such period as is specified in
the application to conduct the project, or for 7
years, whichever is of lesser duration.
(d) WAIVERS.—
(1) IN GENERAL.—Subject to this subsection,
the Chairperson may waive any requirement applica-
ble under Federal law to the administration of, or
provision of benefits under, any covered program in-
cluded in an application approved under this title, if
the waiver is reasonably necessary for the implemen-
tation of the plan contained in the approved applica-
tion.
(2) FUNDING
LIMITATION.—This subsection
shall not be construed to authorize the Chairperson
to waive the application to any State of a provision
of law or regulation applicable to a program if the
waiver would result in net payments by the Federal
Government to the State under the program for a
fiscal year in excess of the net payments which
would otherwise be so made to the State.
(3) CIVIL RIGHTS LAWS EXCEPTED.—This sub-
section shall not be construed to authorize the
Chairperson to waive any requirement established by
statute or regulation under—
(A) title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.);
(B) section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 701 et seq.);
(C) title IX of the Education Amendments
of 1972 (86 Stat. 373 et seq.);
(D) the Age Discrimination Act of 1975
(42 U.S.C. 6101 et seq.); or
(E) the Americans With Disabilities Act of
1990.
SEC. 104. IMPLEMENTATION; EVALUATIONS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, benefits under any covered program included
in an application approved under this title shall be paid
and administered in the manner specified in the approved
application.
(b) STATE EVALUATIONS.—
(1) IN GENERAL.—Any State whose application
is approved under this title shall, in accordance with
regulations issued by the Chairperson—
(A) submit such reports on, and cooperate
in such audits of, the implementation of the
plan contained in the application; and
(B) periodically evaluate the effects that
implementation of the plan has had on—
using the evaluation criteria set forth in the ap-
proved application to conduct the project, and may
authorize the State to conduct the project for such
additional definite or indefinite period as the Chair-
person deems appropriate.
(f) SUSPENSION AND TERMINATION.—
(1) IN
GENERAL.—The Chairperson may re-
quire a State to suspend or terminate implementa-
tion of part or all of a plan under an application ap-
proved under this title if—
(A) the Chairperson finds that the appli-
cant has failed to carry out a covered program
in accordance with any applicable provision of
law or regulation; or
(B) after consultation with the head of
each Federal agency responsible for administer-
ing a covered program included in the approved
application, the Chairperson determines that
the objectives and performance criteria included
in the plan pursuant to section 102(1)(C) have
not been met.
(2) TIMING.—In requiring the implementation
of a plan to be terminated under paragraph (1), the
Chairperson shall allow a reasonable period of time
for appropriate Federal, State, and local agencies to
resume administration of the covered program or
programs included in the application that contains
the plan.
SEC. 105. CONSULTATION REQUIREMENT.
(a) IN GENERAL.—A State desiring to submit an ap-
plication under section 102 shall consult with potential
participants in accordance with this section.
(b) PURPOSE.—Any State submitting an application
under this title shall seek the advice of potential partici-
pants in the development and implementation of the plan
contained in the application, including with respect to—
(1) conducting public hearings;
(2) representing the interest of low-income indi-
viduals and families; and
(3) reviewing and commenting on all commu-
nity policies, programs, and actions under the plan
which affect low-income individuals and families,
with the purpose of assuring maximum coordination
and responsiveness of the plan in providing benefits
under the plan to those individuals and families.
(c) PARTICIPANTS.—The State shall select the par-
ticipants in the consultation process, which shall include—
(1) eligible welfare recipients, including minori-
ties, who are participants or who qualify to partici-
pate in eligible Federal programs;
(2) persons with leadership experience in the
private and voluntary sectors;
(3) local elected officials;
(4) members of the general public; and
(5) individuals and representatives of commu-
nity and business organizations who will help to en-
hance the leadership role of the State in developing
a plan.
SEC. 106. DEFINITIONS.
As used in this title:
(1) BOARD.—The term ‘‘Board’’ means the
Interagency Waiver Review Board established by
section 101.
(2) CHAIRPERSON.—The term ‘‘Chairperson’’
means the Chairperson of the Board.
(3) COVERED
PROGRAM.—The term ‘‘covered
program’’ means, with respect to a plan, the eligible
Federal programs addressed in the plan.
(4) ELIGIBLE FEDERAL PROGRAM.—The term
‘‘eligible Federal program’’ means any of the follow-
ing:
(A) The program of aid and services to
needy families with children under part A of
title IV of the Social Security Act.
(B) The food stamp program, as defined in
section 3(h) of the Food Stamp Act of 1977.
(C) The supplemental security income pro-
gram under title XVI of the Social Security
Act.
(D) Any program under the Job Training
Partnership Act.
(E) The program of rental assistance on
behalf of low-income families provided under
section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f).
(F) The program of assistance to public
housing under title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.).
(G) The program for assistance for afford-
able housing under the HOME Investment
Partnerships Act (42 U.S.C. 12721 et seq.).
(H) The program of assistance payments
on behalf of homeowners under section 235 of
the National Housing Act (12 U.S.C. 1715z).
(I) The program of interest reduction pay-
ments pursuant to contracts entered into by the
Secretary of Housing and Urban Development
under section 236 of the National Housing Act
(12 U.S.C. 1715z–1).
(J) The program of rent supplement pay-
ments on behalf of qualified tenants pursuant
to contracts entered into under section 101 of
the Housing and Urban Development Act of
1965 (12 U.S.C. 1701s).
(K) The program for community develop-
ment block grants under title I of the Housing
and Community Development Act of 1974 (42
U.S.C. 5301 et seq.).
(L) The loan program under section 502 of
the Housing Act of 1949 (42 U.S.C. 1472).
(M) The program for grants for housing in
remote rural areas under section 502(f)(1) of
the 
Housing 
Act 
of 
1949 
(42 
U.S.C.
1472(f)(1)).
(N) The loan and grant programs under
section 504 of the Housing Act of 1949 (42
U.S.C. 1474) for repairs and improvements to
rural dwellings.
(O) The program for project preparation
grants for housing in underserved rural areas
under section 509(f)(6) of the Housing Act of
1949 (42 U.S.C. 1479(f)(6)).