PUBLIC LAW 105-89—NOV. 19, 1997 111 STAT. 2127 "(4) prescribe such regulations as may be necessary to ensure that States provide to the Secretary the data necessary to determine State performance with respect to each outcome measure, as a condition of the State receiving funds under this part; and "(5) on May 1, 1999, and annually thereafter, prepare and submit to the Congress a report on the performance of each State on each outcome measure, which shall examine the reasons for high performance and low performance and, where possible, make recommendations as to how State performance could be improved.". (b) DEVELOPMENT OF PERFORMANCE-BASED INCENTIVE SYS- 42 USC 679b TEM. —The Secretary of Health and Human Services, in consultation note. with State and local public officials responsible for administering child welfare programs and child welfare advocates, shall study, develop, and recommend to Congress an incentive system to provide payments under parts B and E of title IV of the Social Security Act (42 U.S.C. 620 et seq., 670 et seq.) to any State based on the State's performance under such a system. Such a system shall, to the extent the Secretary determines feasible and appropriate, be based on the annual report required by section 479A of the Social Security Act (as added by subsection (a) of this section) or on any proposed modifications of the annual report. Not later than 6 months after the date of the enactment of this Act, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a progress report on the feasibility, timetable, and consultation process for conducting such a study. Not later than 15 months after such date of enactment, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate the final report on a performeince-based incentive system. The report may include other recommendations for restructuring the program and payments under parts B and E of title IV of the Social Security Act. TITLE III—ADDITIONAL IMPROVEMENTS AND REFORMS SEC. 301. EXPANSION OF CHILD WELFARE DEMONSTRATION PROJECTS. (a) IN GENERAL.— Section 1130(a) of the Social Security Act (42 U.S.C. 1320a-9) is amended to read as follows: "(a) AUTHORITY TO APPROVE DEMONSTRATION PROJECTS. — "(1) IN GENERAL.— The Secretary may authorize States to conduct demonstration projects pursuant to this section which the Secretary finds are likely to promote the objectives of part BorEoftitleIV. "(2) LIMITATION.—The Secretary may authorize not more than 10 demonstration projects under paragraph (1) in each of fiscal years 1998 through 2002. " (3) CERTAIN TYPES OF PROPOSALS REQUIRED TO BE CONSIDERED.— "(A) If an appropriate application therefor is submitted, \ the Secretary shall consider authorizing a demonstration project which is designed to identify and address barriers
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