42 U.S. Code § 505 - Demonstration projects
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(a) State demonstration projects authorized
The Secretary of Labor may enter into agreements, with up to 10 States that submit an application described in subsection (b), for the purpose of allowing such States to conduct demonstration projects to test and evaluate measures designed—
(1) to expedite the reemployment of individuals who have established a benefit year and are otherwise eligible to claim unemployment compensation under the State law of such State; or
(b) Application for demonstration project; required content
The Governor of any State desiring to conduct a demonstration project under this section shall submit an application to the Secretary of Labor. Any such application shall include—
(1) a general description of the proposed demonstration project, including the authority (under the laws of the State) for the measures to be tested, as well as the period of time during which such demonstration project would be conducted;
(2) if a waiver under subsection (c) is requested, a statement describing the specific aspects of the project to which the waiver would apply and the reasons why such waiver is needed;
(3) a description of the goals and the expected programmatic outcomes of the demonstration project, including how the project would contribute to the objective described in subsection (a)(1),subsection (a)(2), or both;
(4) assurances (accompanied by supporting analysis) that the demonstration project would operate for a period of at least 1 calendar year and not result in any increased net costs to the State’s account in the Unemployment Trust Fund;
(5) a description of the manner in which the State—
(A) will conduct an impact evaluation, using a methodology appropriate to determine the effects of the demonstration project, including on individual skill levels, earnings, and employment retention; and
(6) assurances that the State will provide any reports relating to the demonstration project, after its approval, as the Secretary of Labor may require; and
(c) Waiver of certain requirements allowed
The Secretary of Labor may waive any of the requirements of section 3304(a)(4) of the Internal Revenue Code of 1986 or of paragraph (1) or (5) of section 503 (a) of this title, to the extent and for the period the Secretary of Labor considers necessary to enable the State to carry out a demonstration project under this section.
(d) Time for demonstration project
A demonstration project under this section—
(e) Limitations on activities
Activities that may be pursued under a demonstration project under this section are limited to—
(f) Notification of approval or denial of application
The Secretary of Labor shall, in the case of any State for which an application is submitted under subsection (b)—
(1) notify the State as to whether such application has been approved or denied within 30 days after receipt of a complete application; and
(2) provide public notice of the decision within 10 days after providing notification to the State in accordance with paragraph (1).
Public notice under paragraph (2) may be provided through the Internet or other appropriate means. Any application under this section that has not been denied within the 30-day period described in paragraph (1) shall be deemed approved, and public notice of any approval under this sentence shall be provided within 10 days thereafter.
(g) Termination of demonstration project
The Secretary of Labor may terminate a demonstration project under this section if the Secretary determines that the State has violated the substantive terms or conditions of the project.