§ 36-b. Local flexibility incentive pilot program. 1. The
department, in cooperation with the department of labor, is authorized
to establish the local flexibility incentive pilot program to enable
social services districts or groups of social services districts, at
local option, to demonstrate innovations and efficiencies to aid public
assistance recipients in attaining self-sufficiency.

2. Upon application of a social services district, the department, in
cooperation with the department of labor, is authorized to approve
funding for pilot programs subject to the approval of the director of
the budget, separate from state aid that said social services district
or social services districts would otherwise be eligible to receive, and
to waive state regulations that would impede the successful completion
of a project, provided that the demonstration project is consistent with
applicable state and federal statutes and will not impair the general
health or welfare of the people receiving services under such project or
others receiving services in the applying social services district. The
department is authorized, in consultation with the department of labor
where appropriate to impose appropriate alternative standards in place
of any waived requirements.

3. Applications for pilot project approval shall include, but not be
limited to, the name of the applying social services district or group
of social services districts, the population, size of its
welfare-related programs including medical assistance, family
assistance, safety net assistance, emergency assistance to families or
its successor programs; size of the population to be subject to the
pilot project, the project proposed, with quantified cost savings and an
explanation of how such project, if approved, would result in cost
containment of the amounts described in the application or improvements
in the delivery of services and benefits; the start date and completion
date of the project; whether, if successful, the project would require
funding in future years; and identification, as necessary, of any rules,
regulations or statutory requirements that could impede the successful
completion of the project.

4. If a project is approved, then, notwithstanding any inconsistent
provision of law, the department shall provide funding of the project
within amounts available by appropriation therefor, provided that no
social services district or group of social services districts shall
receive more than twenty-five percent of the funds available in any
single year. No payment will be made until thirty days after the
agreement has been executed. An approved applicant that shall achieve
its cost-savings goal shall receive full reimbursement for the costs of
such project as such amount shall have been approved by the department
in cooperation with the department of labor. In no case shall the state
or any of its agencies require remission or repayment of funds saved by
any applicant. Reimbursement for successful applicants pursuant to the
provisions of this section shall not take place until the department
shall have been satisfied as to the savings levels actually achieved.

5. Each social services district or group of social services
districts implementing a pilot project under this section shall
establish an on-going program evaluation and assessment program
employing objective measurements and systematic analysis to determine
the manner and extent to which the project is achieving the intended
primary objective of the project. Each evaluation and assessment
program shall include an annual performance plan with goals which
establish target levels of performance expressed as tangible, measurable
objectives against which actual achievement can be compared, including a
goal expressed as a qualitative standard, value or rate. Each
participating social services district or group of social services
districts shall submit an annual program performance report for the
prior fiscal year to the department, the department of labor and to the
governor, the speaker of the assembly and the majority leader of the
senate documenting the performance achieved compared with the
performance goals established for the pilot project, improvements in the
quality of services provided and any cost savings; an explanation if a
performance goal was not met and an assessment of the effectiveness in
achieving performance goals.

6. Notwithstanding any provision of law to the contrary, state
reimbursement for expenditures made by a social services district for
administration of any project, including expenditures made in connection
with the development, if performed by a county employee or employees,
implementation and operation thereof, shall not be subject to any
limitations on administrative expenditures, ceilings or caps which
otherwise would apply to the reimbursement of such administrative
expenditures.