HB-6580, As Passed House, November 30, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6580

     A bill to amend 1939 PA 280, entitled

"The social welfare act,"

by amending sections 57, 57b, 57f, and 57g (MCL 400.57, 400.57b,

400.57f, and 400.57g), section 57 as added by 1995 PA 223, section

57b as amended by 1999 PA 9, and sections 57f and 57g as amended by

2001 PA 280, and by adding sections 57p, 57q, 57r, 57s, and 57t.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 57. (1) As used in this section and sections 57a to  57g

57t:

     (a) "Adult-supervised household" means either of the

following:

     (i) The place of residence of a parent, stepparent, or legal

guardian of a minor parent.

     (ii) A living arrangement not described in subparagraph (i) that

the  family independence agency  department approves as a family

setting that provides care and control of a minor parent and his or

her child and supportive services including, but not limited to,

counseling, guidance, or supervision.

     (b) "Caretaker" means an individual who is acting as parent

for a child in the absence or because of the disability of the

child's parent or stepparent and who is the child's legal guardian,

grandparent, great grandparent, great-great grandparent, sibling,

stepsibling, aunt, great aunt, great-great aunt, uncle, great

uncle, great-great uncle, nephew, niece, first cousin, or first

cousin once-removed, a spouse of any person listed above, a parent

of the putative father, or an unrelated individual aged 21 or older

whose appointment as legal guardian of the child is pending.

     (c) "Child" means an individual who is not emancipated under

Act No. 293 of the Public Acts of 1968, being sections 722.1 to

722.6 of the Michigan Compiled Laws  1968 PA 293, MCL 722.1 to

722.6, who lives with a parent or caretaker, and who is either of

the following:

     (i) Under the age of 18.

     (ii) Age 18 or 19, a full-time high school student, and

reasonably expected to graduate from high school before the age of

20.

     (d) "Family" means 1 or more of the following:

     (i) A household consisting of a child and either of the

following:

     (A) A parent or stepparent of the child.

     (B) A caretaker of the child.

     (ii) A pregnant woman.

     (iii) A parent of a child in foster care.

     (e) "Family independence assistance" means financial

assistance provided to a family under the family independence

program.

     (f) "Family independence assistance group" means all those

members of a program group who receive family independence

assistance.

     (g) "Family independence program" means the program of

financial assistance established under section 57a.

     (h) "Family self-sufficiency plan" means a document described

in section 57e that is executed by a family in return for receiving

family independence assistance.

(i)  (h) "Minor parent" means an individual under the age of

18 who is not emancipated under  Act No. 293 of the Public Acts of

1968  1968 PA 293, MCL 722.1 to 722.6, and who is either the

biological parent of a child living in the same household or a

pregnant woman.

(j)  (i) "Payment standard" means the standard upon which

family independence program benefits are based if the family

independence assistance group has no net income.

(k)  (j) "Program group" means a family and all those

individuals living with a family whose income and assets are

considered for purposes of determining financial eligibility for

family independence assistance.

(l)  (k) "Recipient" means an individual receiving family

independence assistance.

     (l) "Social contract" means a document described in section 57e

that is executed by a family in return for the receipt of family

independence assistance.

     (m) "Substance abuse" means that term as defined in section

6107 of the public health code,  Act No. 368 of the Public Acts of

1978, being section 333.6107 of the Michigan Compiled Laws  1978 PA

368, MCL 333.6107.

      (n) "Substance abuse treatment" means outpatient or inpatient

services or participation in alcoholics anonymous or a similar

program.

     (o) "Supplemental security income" means the program of

supplemental security income provided under title XVI.

(p)  (o) "Work first" means the program of employment and

training administered by the  Michigan jobs commission  department

of labor and economic growth for applicants and recipients of

family independence assistance.

     (2) A reference in this act to "aid to dependent children" or

"aid to families with dependent children" means "family

independence program assistance".

Sec. 57b. (1) Subject to section 57l, an individual who meets

all of the following requirements is eligible for family

independence assistance:

     (a) Is a member of a family or a family independence

assistance group.

     (b) Is a member of a program group whose income and assets are

less than the income and asset limits set by the  family

independence agency  department.

     (c) In the case of a minor parent, meets the requirements of

subsection (2).

     (d) Is a United States citizen, a permanent resident alien, or

a refugee.

     (e) Is a resident of this state as described in section 32.

     (f) Meets any other eligibility criterion required for the

receipt of federal or state funds or determined by the  family

independence agency  department to be necessary for the

accomplishment of the goals of the family independence program.

     (2) A minor parent and the minor parent's child shall not

receive family independence assistance unless they live in an

adult-supervised household. The family independence assistance

shall be paid on behalf of the minor parent and child to an adult

in the adult-supervised household. Child care in conjunction with

participation in education, employment readiness, training, or

employment programs, which have been approved by the  family

independence agency  department, shall be provided for the minor

parent's child. The minor parent and child shall live with the

minor parent's parent, stepparent, or legal guardian unless the

family independence agency  department determines that there is

good cause for not requiring the minor parent and child to live

with a parent, stepparent, or legal guardian. The  family

independence agency  department shall determine the circumstances

that constitute good cause, based on a parent's, stepparent's, or

guardian's unavailability or unwillingness or based on a reasonable

belief that there is physical, sexual, or substance abuse, or

domestic violence, occurring in the household, or that there is

other risk to the physical or emotional health or safety of the

minor parent or child. If the  family independence agency

department determines that there is good cause for not requiring a

minor parent to live with a parent, stepparent, or legal guardian,

the minor parent and child shall live in another adult-supervised

household. A local office director may waive the requirement set

forth in this subsection with respect to a minor parent who is at

least 17 years of age, attending secondary school full-time, and

participating in a department service plan  of the family

independence agency or a teen parenting program, if moving would

require the minor parent to change schools.

     (3) Beginning December 31, 2006, if a recipient who is

otherwise eligible for family independence assistance under this

section is currently applying for supplemental security income and

seeking exemption or deferment from the work first program, the

recipient shall be evaluated and assessed as provided in this

section before a family self-sufficiency plan is developed under

section 57e. Based on a report resulting from the evaluation and

assessment, the caseworker shall make a determination and referral

as follows:

     (a) A determination that the recipient is work eligible and a

referral to the work first program.

     (b) A determination that the recipient is work exempt and a

referral to a sheltered work environment or subsidized employment.

     (c) A determination that the recipient is work exempt and a

referral to a legal services organization for supplemental security

income advocacy.

     (4) The department may contract with a legal services

organization to assist recipients with the process for applying for

supplemental security income. The department may also contract with

a nonprofit rehabilitation organization to perform the evaluation

and assessment described under subsection (3). If the department

contracts with either a nonprofit legal or rehabilitation services

organization, uniform contracts shall be used statewide that

include, but are not limited to, uniform rates and performance

measures.

     (5) The department shall contract with an independent entity

to conduct annual auditing of the evaluation and assessment process

required under this section.

     Sec. 57f. (1) The  family independence agency  department

shall enter into an agreement with the department of  career

development in order  labor and economic growth to facilitate the

administration of work first. The  family independence agency

department shall make information on the program available to the

legislature.

     (2)  Except as otherwise provided in subsection (3), every

member of a family independence assistance group shall be referred

to and shall participate in work first.  Except as provided in

section 57b, at the time the department determines that an

individual is eligible to receive family independence assistance

under this act, the department shall determine whether that

individual is eligible to participate in the work first program or

if the individual is exempt from work first participation under

this section. The particular activities in which the recipient is

required or authorized to participate, the number of hours of work

required, and other details of work first shall be developed by the

department  of career development and the family independence

agency  and the department of labor and economic growth and shall

be set forth in the recipient's  social contract  family self-

sufficiency plan. If a recipient has cooperated with work first,

the recipient may enroll in a program approved by the local

workforce development board. Any and all training or education with

the exception of high school completion,  and GED preparation, and

literacy training must be occupationally relevant and in demand in

the labor market as determined by the local workforce development

board and may be no more than 2 years in duration. Participants

must make satisfactory progress while in training or education. If

the department determines that an individual is eligible to

participate in the work first program and resides in a county in

which a jobs education training program is available, family

independence assistance shall be paid to that individual for not

longer than a cumulative total of 48 months during that

individual's lifetime. If the recipient is meeting all the

requirements outlined in his or her family self-sufficiency plan

and has not received a penalty under section 57g after December 31,

2006 and labor market conditions or employment barriers prevent

employment placement, a recipient may apply to the department for

an extension of family independence assistance benefits for a

period not to exceed 12 months over the 48-month cumulative

lifetime total. Nothing in this subsection prevents the department

from providing assistance to individuals who are determined to be

exempt.

     (3) The following individuals are exempt from participation in

work first:

     (a) A child under the age of 16.

     (b) A child aged 16 or older, or a minor parent, who is

attending elementary or secondary school full-time.

     (c) The parent of a child under the age of 3 months. The

family independence agency may require a parent exempted from

participation in work first under this subdivision to participate

in family services, including, but not limited to, instruction in

parenting, nutrition, and child development beginning 6 weeks after

the birth of his or her child until the child is 3 months old as

fulfillment of that parent's social contract obligation under

section 57e(1)(c).

     (d) An individual aged 65 or older.

     (e) A recipient of supplemental security income.

     (f) An individual who meets 1 or more of the following

criteria to the extent that the individual, based on medical

evidence and an assessment of need by the  family independence

agency  department, is severely restricted in his or her ability to

participate in employment or training activities:

     (i) A recipient of social security disability, or medical

assistance due to disability or blindness.

     (ii) An individual suffering from a physical or mental

impairment that meets federal supplemental security income

disability standards, except that no minimum duration is required.

     (iii) The spouse of an individual described in subparagraph (i)

or (ii) who is the full-time caregiver of that individual.

     (iv) A parent or caretaker of a child who is suffering from a

physical or mental impairment that meets the federal supplemental

security income disability standards, except that no minimum

duration is required.

     (v) An individual with low intellectual capacity or learning

disabilities that impede comprehension and prevent success in

acquiring basic reading, writing, and math skills, including, but

not limited to, an individual with an intelligence quotient less

than 80.

     (vi) An individual with documented chronic mental health

problems that cannot be controlled through treatment or medication.

     (vii) An individual with physical limitations on his or her

ability to perform routine manual labor tasks, including, but not

limited to, bending or lifting, combined with intellectual capacity

or learning disabilities.

     (4) In addition to those individuals exempt under subsection

(3), the family independence agency may grant a temporary exemption

from participation in work first, not to exceed 90 days, to an

individual who is suffering from a documented short-term mental or

physical illness, limitation, or disability that severely restricts

his or her ability to participate in employment or training

activities. An individual with a documented mental or physical

illness, limitation, or disability that does not severely restrict

his or her ability to participate in employment or training

activities shall be required to participate in work first at a

medically permissible level.

     (5) An individual is not disabled for purposes of this section

if substance abuse is a contributing factor material to the

determination of disability.

     (6) This section does not apply after September 30, 2011.

     Sec. 57g.  (1) The family independence agency shall develop a

system of penalties to be imposed if a recipient fails to comply

with applicable rules or the provisions of this section. Penalties

may be cumulative and may include reduction of the grant, removal

of an individual from the family independence assistance group, and

termination of assistance to the family.

     (2) A penalty shall not be imposed if the recipient has

demonstrated that there was good cause for failing to comply. The

family independence agency shall determine the circumstances that

constitute good cause based on factors that are beyond the control

of a recipient.

     (3) Recipients who are willing to participate in activities

leading to self-sufficiency but who require child care or

transportation in order to participate shall not be penalized if

the family independence agency determines that child care or

transportation is not reasonably available or provided to them.

     (4) The system of penalties developed under subsection (1)

shall include both of the following:

     (a) Family independence program benefits shall be terminated

if a recipient fails, without good cause, to comply with applicable

child support requirements including efforts to establish paternity

and obtain child support. The assistance group is ineligible for

family independence program assistance for not less than 1 calendar

month. After assistance has been terminated for not less than 1

calendar month, assistance may be restored if the noncompliant

recipient complies with child support requirements including the

action to establish paternity and obtain child support.

     (b) For any instance of noncompliance, before determining that

a penalty shall be imposed, the family independence agency shall

determine if good cause for noncompliance exists. The family

independence agency shall notify the recipient that he or she has

10 days to demonstrate good cause for noncompliance. If good cause

is not determined to exist, assistance shall be terminated. After

termination, the assistance group is ineligible for family

independence program assistance for not less than 1 calendar month.

     (5) For the purposes of this section, "noncompliance" means 1

or more of the following:

     (a) A recipient quits a job.

     (b) A recipient is fired for misconduct or for absenteeism

without good cause.

     (c) A recipient voluntarily reduces the hours of employment or

otherwise reduces earnings.

     (d) A recipient does not participate in work first activities.

(1)  (6) If  Beginning April 1, 2007, if a recipient does not

meet  the recipient's  his or her individual  social contract

personal responsibility plan requirements and is therefore

noncompliant, the  family independence agency may impose a penalty

department shall impose the penalties described under this section.

The department shall implement a schedule of penalties for

instances of noncompliance as described in this subsection. The

penalties shall be as follows:

     (a) For the first instance of noncompliance, the recipient is

ineligible to receive family independence program assistance for

not less than 3 calendar months.

     (b) For the second instance of noncompliance, the recipient is

ineligible to receive family independence program assistance for

not less than 3 calendar months.

     (c) For the third instance of noncompliance, the recipient is

ineligible to receive family independence program assistance for 12

calendar months.

     (7) After termination for noncompliance, the assistance group

is ineligible for family independence program assistance for not

less than 1 calendar month. After assistance has been terminated

for not less than 1 calendar month, family independence program

assistance may be approved if the recipient completes a willingness

to comply test. For purposes of this section, "willingness to

comply" means participating in work first or other self-sufficiency

activities for up to 40 hours within 10 working days. At the time

any penalty is imposed under this section, the family independence

agency shall provide the recipient written notice of his or her

option to immediately reapply for family independence program

benefits and that he or she may complete a "willingness to comply

test" during the penalty period.

     (8) The family independence agency shall submit a report for

the period between February 1, 2002 and December 31, 2002 to the

legislature, the house and senate fiscal agencies, and the

appropriate house and senate standing committees that handle family

and children's issues, that contains all of the following

information for that time period:

     (a) The number of sanctions imposed and reapplications made.

     (b) The number of family independence program cases reopened.

     (c) The number of referrals to emergency shelters by the

department.

     (d) The number of sanctions imposed on families with at least

1 disabled parent.

     (e) The number of sanctions imposed on families with disabled

children.

     (2) For the purposes of this section, "noncompliance" means 1

or more of the following:

     (a) A recipient quits a job.

     (b) A recipient is fired for misconduct or for absenteeism.

     (c) A recipient voluntarily reduces the hours of employment or

otherwise reduces earnings.

     (d) A recipient does not participate in work first activities.

     (e) A recipient is noncompliant with his or her self-

sufficiency plan.

     (3) For all instances of noncompliance resulting in

termination of family independence assistance for any period of

time described in subsection (1), both of the following apply:

     (a) Family independence program assistance may be approved to

begin at the conclusion of the penalty period if the recipient

attends a joint meeting with his or her family independence

specialist caseworker and a work first program caseworker and the

family self-sufficiency plan is reviewed, modified as necessary,

and approved by the family independence specialist caseworker and

the work first program caseworker. The reevaluation required under

this subdivision shall include a discussion and official warning

regarding penalties that may be imposed for future instances of

noncompliance.

     (b) The period of time the recipient is ineligible to receive

family independence program assistance applies toward the

recipient's 48-month cumulative lifetime total.

     (4) For the first instance that a caseworker determines a

recipient to be noncompliant, all of the following shall occur:

     (a) The department shall notify the recipient in writing

within 3 business days of determining that the recipient is

noncompliant. The notification shall include all of the following:

     (i) The reason the recipient has been determined to be

noncompliant.

     (ii) The penalty that will be imposed for the noncompliance.

     (iii) An opportunity for the recipient to meet in person with

the caseworker within 10 business days of the determination that

the recipient is noncompliant.

     (b) If the recipient meets with a caseworker within 10

business days, the caseworker and the recipient shall review and

modify the family self-sufficiency plan as determined necessary by

the caseworker. The caseworker shall discuss and provide an

official warning regarding penalties that shall be imposed if the

recipient continues to be noncompliant. The caseworker shall inform

the recipient that he or she must verify compliance with his or her

self-sufficiency plan within 10 business days.

     (c) If the recipient fails to meet with the caseworker within

10 business days of the determination that the recipient is

noncompliant, the recipient is subject to the provisions of

subsection (1)(a).

     (d) If the recipient fails to verify compliance under

subdivision (b), the recipient is subject to the provisions of

subsection (1)(a).

     (5) The meeting described in subsection (4) is only available

for the first time a caseworker determines the recipient to be

noncompliant regardless of whether that recipient becomes subject

to the provisions of subsection (1)(a).

     (6) This section does not apply after September 30, 2011.

     Sec. 57p. (1) Any month in which any of the following occurs

shall not be counted toward the cumulative total of 48 months in a

lifetime for family independence assistance:

     (a) Individuals who have been temporarily exempted from work

first under section 57f(3)(c) and (4).

     (b) The recipient is employed and meeting the requirements of

his or her self-sufficiency plan.

     (c) The unemployment rate in the county in which the recipient

resides is higher than 9%.

     (d) Compliance with certain family independence program

requirements are waived under section 56i(1)(c).

     (2) This section does not apply after September 30, 2011.

     Sec. 57q. The department shall develop and implement a plan to

incrementally increase the earned income disregard for family

independence program recipients from $200.00 plus 20% to not more

than 67% of earned income by September 30, 2010.

     Sec. 57r. The department shall implement the jobs, education,

and training (JET) program statewide by September 30, 2007.

     Sec. 57s. The department shall pay $10.00 per month for 6

months to individuals who leave family independence programs due to

no longer meeting the financial eligibility criteria based on

earned income, if those individuals continue to meet the federal

guidelines for work participation.

     Sec. 57t. (1) The department shall provide a quarterly report

of exemptions under section 57f by district office and by criteria

to all of the following:

     (a) The senate and house standing committees dealing with

appropriations for human services.

     (b) The senate and house fiscal agencies.

     (c) The majority leader of the senate and the speaker of the

house of representatives.

     (2) The department shall provide a report by district office

on the number of sanctions issued, the number of compliance

exceptions granted, and the success rate of recipients given the

compliance exception under section 57g.

     (3) The department shall require district managers to track

performance of caseworkers with regard to sanctions under section

57g.

     (4) The department shall require reporting by county office on

referrals to nonprofit rehabilitation organizations under section

57b and the following:

     (a) Referrals pending less than 90 days.

     (b) Referrals pending 90 to 180 days.

     (c) Referrals pending 180 to 365 days.

     (5) The department shall require a quarterly report on cases

in which the recipient has applied for supplemental security income

under section 57b as follows:

     (a) The number of cases assessed.

     (b) The number of cases referred to work first.

     (c) The number of cases placed in subsidized employment.

     (d) The number of cases referred to legal services advocacy

programs and the number of cases granted supplemental security

income.

     (6) The department shall report the progress of the plan

required under section 57q and its implementation progress annually

by April 1.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 6587 of the 93rd Legislature is enacted into

law.