I 
113TH CONGRESS 
2D SESSION 
H. R. 4206 
To authorize a State or a portion of a State to conduct a demonstration 
project designed to test methods of program integration and coordination 
of services with the goals of moving individuals and families towards 
self-sufficiency, reducing welfare dependence, and increasing work and 
earnings. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 11, 2014 
Mr. REED (for himself, Mr. REICHERT, Mr. YOUNG of Indiana, Mr. KELLY 
of Pennsylvania, Mr. GRIFFIN of Arkansas, and Mr. SOUTHERLAND) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committees on Agriculture, Financial 
Services, and Education and the Workforce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To authorize a State or a portion of a State to conduct 
a demonstration project designed to test methods of pro-
gram integration and coordination of services with the 
goals of moving individuals and families towards self- 
sufficiency, reducing welfare dependence, and increasing 
work and earnings. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Help Americans in 
Need Develop their Ultimate Potential Act’’ or the 
‘‘HAND UP Act’’. 
SEC. 
2. 
PROGRAM 
COORDINATION 
DEMONSTRATION 
PROJECTS. 
(a) PURPOSE.—The purpose of this section is to es-
tablish a program of demonstration projects in a State or 
portion of a State to provide supports to individuals and 
families with the goal of moving them towards self-suffi-
ciency, reducing welfare dependence, and increasing work 
and earnings by testing methods of program integration 
and coordination of services which will result in more ef-
fective service delivery and better outcomes for recipients. 
(b) DEFINITIONS.—In this section: 
(1) ADMINISTERING
SECRETARY.—The term 
‘‘administering Secretary’’ means, with respect to a 
qualified program, the head of the Federal agency 
responsible for administering the program. 
(2) QUALIFIED PROGRAM.—The term ‘‘qualified 
program’’ means— 
(A) a program under part A of title IV of 
the Social Security Act; 
(B) the program under title XX of the So-
cial Security Act; 
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(C) activities funded under title I, II, or 
III of the Workforce Investment Act of 1998 
(29 U.S.C. 2801 et seq.); 
(D) activities funded under the United 
States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.), except that such term shall not include 
the program under section 7 of such Act (42 
U.S.C. 1437e) for designating public housing 
for occupancy by certain populations; or 
(E) the supplemental nutrition assistance 
program as defined in section 3 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2012). 
(c) APPLICATION REQUIREMENTS.—The head of a 
State entity or of a sub-State entity administering 2 or 
more qualified programs proposed to be included in a dem-
onstration project under this section shall (or, if the 
project is proposed to include qualified programs adminis-
tered by 2 or more such entities, the heads of the admin-
istering entities (each of whom shall be considered an ap-
plicant for purposes of this section) shall jointly) submit 
to the administering Secretary an application that con-
tains the following: 
(1) PROGRAMS INCLUDED.—A statement identi-
fying each qualified program to be included in the 
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project, and describing how the purposes of each 
such program will be achieved by the project. 
(2) POPULATION SERVED.—A statement identi-
fying the population to be served by the project and 
specifying the eligibility criteria to be used. 
(3) DESCRIPTION AND JUSTIFICATION.—A de-
tailed description of the project, including— 
(A) a description of how the project is ex-
pected to improve or enhance achievement of 
the purposes of the programs to be included in 
the project, from the standpoint of quality, of 
cost-effectiveness, or of both; 
(B) a description of the performance objec-
tives for the project, including any proposed 
modifications to the performance measures and 
reporting requirements used in the programs; 
(C) a description of how the project will 
achieve the goal of moving recipients to self-suf-
ficiency; and 
(D) the length of time a project will last. 
(4) WAIVERS
REQUESTED.—A description of 
the statutory and regulatory requirements with re-
spect to which a waiver is requested in order to 
carry out the project, and a justification of the need 
for each such waiver. 
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(5) COST LIMITATION.—Such information and 
assurances as necessary to establish to the satisfac-
tion of the administering Secretary, in consultation 
with the Director of the Office of Management and 
Budget, that the proposed project is reasonably ex-
pected to meet the applicable cost limitation require-
ments of subsection (d)(4). 
(6) USE OF CERTAIN SAVINGS.— 
(A) IN
GENERAL.—If the State or sub- 
State entity desires to use not more than 1⁄2 of 
the savings to be realized from carrying out the 
proposed project in a fiscal year, to meet 1 or 
more requirements imposed by or under a Fed-
eral law pertaining to education, a description 
of how the State or sub-State entity will so use 
that portion of the savings. 
(B) DEFINITIONS.—In this paragraph: 
(i) SAVINGS.—The term ‘‘savings’’ 
means, with respect to a proposed project 
and a fiscal year, the amount (if any) by 
which— 
(I) the total of the amount that 
would be payable by the Federal Gov-
ernment for the fiscal year with re-
spect to the affected programs in the 
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State in which the applicant is lo-
cated, if the proposed project were not 
conducted, as determined by the Di-
rector of the Office of Management 
and Budget; exceeds 
(II) the total of the amounts that 
would be payable by the Federal Gov-
ernment for the fiscal year with re-
spect to the programs if the proposed 
project were conducted (as so deter-
mined). 
(ii) AFFECTED PROGRAMS.—The term 
‘‘affected programs’’ means, with respect 
to a proposed project, the programs that 
would be affected if the proposed project 
were conducted. 
(7) EVALUATION AND REPORTS.—An assurance 
that the applicant will— 
(A) obtain an evaluation by an independent 
contractor of the extent to which the project is 
meeting the purposes of this section, using an 
evaluation design that, to the maximum extent 
feasible, includes random assignment of clients 
(or entities serving clients) to service delivery 
and control groups; and 
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(9) OTHER INFORMATION AND ASSURANCES.— 
Such other information and assurances as the ad-
ministering Secretary may require. 
(d) APPROVAL OF APPLICATION.— 
(1) IN GENERAL.—The administering Secretary 
with respect to a qualified program that is identified 
in an application submitted pursuant to subsection 
(c) shall approve the application and, except as pro-
vided in paragraph (2), waive any requirement appli-
cable to the program, to the extent consistent with 
this section and necessary and appropriate for the 
conduct of the demonstration project proposed in the 
application if the administering Secretary determines 
that the project— 
(A) has a reasonable likelihood of achieving 
the objectives of the programs to be included in 
the project; 
(B) may reasonably be expected to meet 
the applicable cost limitation requirements of 
paragraph (4), as determined by the Director of 
the Office of Management and Budget; and 
(C) includes the coordination of 2 or more 
qualified programs. 
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(2) PROVISIONS EXCLUDED FROM WAIVER AU-
THORITY.—A waiver shall not be granted under 
paragraph (1)— 
(A) with respect to any provision of law re-
lating to— 
(i) civil rights or prohibition of dis-
crimination; 
(ii) purposes or goals of any program; 
(iii) maintenance of effort require-
ments; 
(iv) health or safety; 
(v) wage and hour requirements under 
sections 6 and 7 of the Fair Labor Stand-
ards Act of 1938; or 
(vi) environmental protection; 
(B) with respect to any work requirement 
imposed pursuant to section 407 of the Social 
Security Act; 
(C) with respect to section 241(a) of the 
Adult Education and Family Literacy Act; 
(D) in the case of a program under the 
United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.), with respect to any requirement 
under section 5A of such Act (42 U.S.C. 
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1437c–1; relating to public housing agency 
plans and resident advisory boards); 
(E) in the case of a program under the 
Workforce Investment Act, with respect to any 
requirement the waiver of which would violate 
section 189(i)(4)(A)(i) of such Act (29 U.S.C. 
2939(i)(4)(A)(i)); 
(F) in the case of the supplemental nutri-
tion assistance program (as defined in section 3 
of the Food and Nutrition Act of 2008 (7 
U.S.C. 2012)), with respect to any requirement 
under— 
(i) section 6 (if waiving a requirement 
under such section would have the effect of 
expanding eligibility for the program), 7(b) 
or 16(c) of such Act (7 U.S.C. 2011 et 
seq.); or 
(ii) title IV of the Personal Responsi-
bility and Work Opportunity Reconciliation 
Act of 1996 (8 U.S.C. 1601 et seq.); 
(G) with respect to any requirement that a 
State pass through to a sub-State entity part or 
all of an amount paid to the State; 
(H) if the waiver would waive any funding 
restriction or limitation provided in an appro-
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priations Act, or would have the effect of trans-
ferring appropriated funds from 1 appropria-
tions account to another; or 
(I) except as otherwise provided by statute, 
if the waiver would waive any funding restric-
tion applicable to a program authorized under 
an Act which is not an appropriations Act (but 
not including program requirements such as ap-
plication procedures, performance standards, 
reporting requirements, or eligibility standards), 
or would have the effect of transferring funds 
from a program for which there is direct spend-
ing (as defined in section 250(c)(8) of the Bal-
anced Budget and Emergency Deficit Control 
Act of 1985) to another program. 
(3) AGREEMENT OF EACH ADMINISTERING SEC-
RETARY REQUIRED.— 
(A) IN GENERAL.—An applicant may not 
conduct a demonstration project under this sec-
tion unless each administering Secretary with 
respect to any program proposed to be included 
in the project has approved the application to 
conduct the project. 
(B) AGREEMENT WITH RESPECT TO FUND-
ING AND IMPLEMENTATION.—Before approving 
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an application to conduct a demonstration 
project under this section, an administering 
Secretary shall have in place an agreement with 
the applicant with respect to the payment of 
funds and responsibilities of the administering 
Secretary with respect to the project. 
(4) COST LIMITATION REQUIREMENT.— 
(A) 
GENERAL
RULE.—Notwithstanding 
any other provision of law (except subparagraph 
(B)), the total of the amounts that may be paid 
by the Federal Government for a fiscal year 
with respect to the programs in the State in 
which an entity conducting a demonstration 
project under this section is located that are af-
fected by the project shall not exceed the esti-
mated total amount that the Federal Govern-
ment would have paid for the fiscal year with 
respect to the programs if the project had not 
been conducted, as determined by the Director 
of the Office of Management and Budget. 
(B) SPECIAL RULE.—If an applicant sub-
mits to the Director of the Office of Manage-
ment and Budget a request to apply the rules 
of this subparagraph to the programs in the 
State in which the applicant is located that are 
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affected by a demonstration project proposed in 
an application submitted by the applicant pur-
suant to this section, during such period of not 
more than 5 consecutive fiscal years in which 
the project is in effect, and the Director deter-
mines, on the basis of supporting information 
provided by the applicant, to grant the request, 
then, notwithstanding any other provision of 
law, the total of the amounts that may be paid 
by the Federal Government for the period with 
respect to the programs shall not exceed the es-
timated total amount that the Federal Govern-
ment would have paid for the period with re-
spect to the programs if the project had not 
been conducted. 
(5) 90-DAY APPROVAL DEADLINE.— 
(A) IN
GENERAL.—If an administering 
Secretary receives an application to conduct a 
demonstration project under this section and 
does not disapprove the application within 90 
days after the receipt, then— 
(i) the administering Secretary is 
deemed to have approved the application 
for such period as is requested in the ap-
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(iii) 1-YEAR LIMIT ON RESPONSE PE-
RIOD.—If 1 year has elapsed since the date 
an administering Secretary made a request 
to an applicant under this subparagraph 
with respect to an application, and the ad-
ministering Secretary has not received 
from the applicant a response to the re-
quest, the administering Secretary shall 
immediately approve or disapprove the ap-
plication. 
(6) RULE OF CONSTRUCTION.—Nothing in this 
Act shall be construed to require the payment of the 
minimum wage in effect under section 6 of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 206) to 
any individual other than an employee of an em-
ployer subject to such section. 
(7) DISAPPROVAL.—If an administering Sec-
retary disapproves an application submitted pursu-
ant to this section, the administering Secretary shall 
include with the notice of disapproval an explanation 
of the reasons for the disapproval with specific ref-
erence to the particular requirements of paragraph 
(1) not met by the application. 
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(e) DURATION
OF
PROJECT.—A demonstration 
project under this section may be approved for a term of 
not more than 5 years. 
(f) MODIFICATION OF PROJECT.— 
(1) REQUEST FOR MODIFICATION.—An entity 
conducting a demonstration project approved under 
this section may submit to each administering Sec-
retary with respect to any program included in the 
project a request to modify the project. 
(2) REQUIREMENT.—An administering Sec-
retary may not approve a request submitted under 
paragraph (1) with respect to a project, unless the 
administering Secretary determines that, if the re-
quest is not approved, the project will not achieve its 
performance objectives because economic conditions 
have changed since the project was approved. 
(3) 30-DAY
APPROVAL
DEADLINE
AFTER
RE-
SPONSE.—If an administering Secretary receives a 
request made under this subsection and does not 
disapprove the request within 30 days after the re-
ceipt, the administering Secretary is deemed to have 
approved the request, except to the extent incon-
sistent with subsection (d)(2), (d)(4), or (e). 
(4) AGREEMENT OF EACH ADMINISTERING SEC-
RETARY REQUIRED.— 
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(A) IN GENERAL.—The entity conducting 
a demonstration project approved under this 
section may not modify the project, except in 
accordance with a request approved under this 
subsection by each administering Secretary with 
respect to any program included in the project. 
(B) AGREEMENT WITH RESPECT TO FUND-
ING AND IMPLEMENTATION.—Before approving 
a request to modify a demonstration project ap-
proved under this section, an administering 
Secretary shall have in place an agreement with 
the requestor with respect to the payment of 
funds and responsibilities of the administering 
Secretary with respect to the modified project. 
(g) EARLY TERMINATION OF PROJECT.—An admin-
istering Secretary with respect to a demonstration project 
conducted under this section may terminate the project 
if the administering Secretary— 
(1) determines that the entity conducting the 
project has violated the substantive terms or condi-
tions of the project; 
(2) notifies the entity in writing with sufficient 
detail describing the violation; and 
(3) determines that the State has not taken ac-
tion to correct the violation during the 90-day period 
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beginning with the date the entity received the no-
tice. 
(h) REPORTS TO CONGRESS.— 
(1) REPORT
ON
DISPOSITION
OF
APPLICA-
TIONS.—Within 90 days after an administering Sec-
retary receives an application submitted pursuant to 
this section, the administering Secretary shall sub-
mit to each Committee of the Congress which has 
jurisdiction over a qualified program identified in 
the application notice of the receipt, a description of 
the decision of the administering Secretary with re-
spect to the application, and the reasons for approv-
ing or disapproving the application. 
(2) REPORTS
ON
PROJECTS.—Each admin-
istering Secretary that has jurisdiction over a quali-
fied program that is part of a demonstration project 
approved under this section shall provide annually to 
each Committee of the Congress that has jurisdic-
tion over the program a report, which shall in-
clude— 
(A) the number of waivers granted for the 
project under this section, and the specific stat-
utory provisions, if any, waived; 
(B) in the case of a project for which such 
a waiver is granted— 
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(i) how well the project is improving 
or enhancing program achievement from 
the standpoint of quality, cost-effective-
ness, or both; 
(ii) how well the project is meeting the 
performance objectives specified in sub-
section (c)(3)(B); and 
(iii) how the project is conforming 
with the cost limitation requirements of 
subsection (d)(4); 
(C) the number of individuals engaged in 
the program under the project; 
(D) the number of individuals so engaged 
who completed education or workforce develop-
ment programs; 
(E) the number of individuals so engaged 
who reduced their dependence on government 
benefits as result of self-sufficiency; 
(F) an explanation of the functions the 
State or sub-State project employed to help in-
dividuals achieve self sufficiency; 
(G) an up-to-date statement of the cost of 
the project, and of the expected future costs of 
continuing the project; 
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(H) to the extent the administering Sec-
retary deems appropriate, recommendations for 
modifying programs based on project outcomes; 
and 
(I) if the project has been carried out for 
at least 30 months, a statement as to whether 
the project is meeting the goals of the project 
and a determination as to whether the project 
will be continued for the remainder of the term 
for which the project was approved. 
(3) FUNDING.—Each administering Secretary 
that has jurisdiction over a qualified program that 
is part of a demonstration project approved under 
this section shall reserve an amount equal to not 
more than 1 percent of the amount to be provided 
for the conduct of the project, and use the amount 
so reserved to carry out this subsection with respect 
to the project. 
SEC. 3. AMENDMENT TO UNITED STATES HOUSING ACT OF 
1937. 
Section 5A(d) of the United States Housing Act of 
1937 (42 U.S.C. 1437c–1(d)) is amended— 
(1) by redesignating paragraph (19) as para-
graph (20); and 
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(2) by inserting after paragraph (18) the fol-
lowing new paragraph: 
‘‘(19) PROGRAM
COORDINATION
DEMONSTRA-
TION PROJECTS.—In the case of an agency that ad-
ministers 
an 
activity 
referred 
to 
in 
section 
2(b)(2)(D) of the State and Local Program Coordi-
nation Flexibility Act that, during such fiscal year, 
will be included in a demonstration project under 
section 2 of such Act, the information that is re-
quired to be included in the application for the 
project pursuant to paragraphs (1) through (4) of 
section 2(c) of such Act.’’. 
Æ 
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