HB 6580, As Passed Senate

HB-6580, As Passed Senate, December 14, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 6580

A bill to amend 1939 PA 280, entitled

"The social welfare act,"

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

400.57g), section 57b as amended by 1999 PA 9 and sections 57f and

57g as amended by 2001 PA 280, and by adding sections 57q, 57r,

57t, and 57u.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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.

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 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 eligible to

participate in work first and a referral to the work first program.

(b) A determination that the recipient is exempt from work

first participation under section 57f and a referral to a sheltered

work environment or subsidized employment.

first participation under section 57f 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 auditor general shall conduct an annual audit of the

evaluation and assessment process required under this section and

submit a report of his or her findings to the legislature.

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.

(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.

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.

(g) Beginning April 1, 2007, the parent of a child under the

age of 3 months. The department 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 recipient's family self-sufficiency plan

obligation under section 57e(1)(c).

(h) Beginning April 1, 2007, a recipient of supplemental

security income.

(i) Beginning April 1, 2007, 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 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~~ department 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) The department may promulgate rules in accordance with the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328, identifying exemptions under this section. The director of

the department may grant exemptions for extenuating circumstances

beyond the exemptions provided for in this section. The department

shall annually provide to the legislature, at the same time as the

governor's departmental budget proposal, a report of the number of

exemptions issued under this section and the individual reason for

those exemptions.

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

Sec. 57g. (1) The ~~family independence agency~~ department

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~~ department 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~~ department 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~~

department shall determine if good cause for noncompliance exists.

The ~~family independence agency~~ department 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.

otherwise reduces earnings.

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

(6) If a recipient does not meet the recipient's individual

social contract requirements, the ~~family independence agency~~

department may impose a penalty.

(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~~ department 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~~ department 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.

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.

(9) Subsections (1) to (8) do not apply after March 31, 2007.

Subsections (10) to (15) apply beginning April 1, 2007.

(10) Beginning April 1, 2007, if a recipient does not meet his

or her individual family self-sufficiency plan requirements and is

therefore noncompliant, the 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.

ineligible to receive family independence program assistance for 12

calendar months.

(11) 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 absenteeism.

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

sufficiency plan.

(12) If the family independence specialist caseworker and the

work first program caseworker agree that good cause exists for the

recipient's noncompliance, a penalty shall not be imposed. For the

purpose of this subsection, good cause is 1 or more of the

following:

(a) The recipient suffers from a temporary debilitating

illness or injury or an immediate family member has a debilitating

illness or injury and the recipient is needed in the home to care

for the family member.

(b) The recipient lacks child care as described in section

407(e)(2) of the personal responsibility and work opportunity

reconciliation act of 1996, Public Law 104-193, 42 USC 607(e)(2).

2 hours per day or is more than 3 hours per day when there are

unique and compelling circumstances, such as a salary at least

twice the applicable minimum wage or the job is the only available

job placement within a 3-hour commute per day, not including the

time necessary to transport a child to child care facilities.

(d) Transportation is not available to the recipient at a

reasonable cost.

(e) The employment or participation involves illegal

activities.

(f) The recipient is physically or mentally unfit to perform

the job, as documented by medical evidence or by reliable

information from other sources.

(g) The recipient is illegally discriminated against on the

basis of age, race, disability, gender, color, national origin, or

religious beliefs.

(h) Credible information or evidence establishes 1 or more

unplanned or unexpected events or factors that reasonably could be

expected to prevent, or significantly interfere with, the

recipient's compliance with employment and training requirements.

(i) The recipient quit employment to obtain comparable

employment.

(13) For all instances of noncompliance resulting in

termination of family independence assistance for any period of

time described in subsection (10), the period of time the recipient

is ineligible to receive family independence program assistance

applies toward the recipient's 48-month cumulative lifetime total.

(14) Beginning April 1, 2007, for the first instance that a

family independence specialist 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 family independence specialist caseworker within 10 business

days of the determination that the recipient is noncompliant.

(b) If the recipient meets with a family independence

specialist caseworker within 10 business days, the family

independence specialist caseworker and the recipient shall review

and modify the family self-sufficiency plan as determined necessary

by the family independence specialist caseworker. The family

independence specialist caseworker shall discuss and provide an

official warning regarding penalties that shall be imposed if the

recipient continues to be noncompliant. The family independence

specialist caseworker shall inform the recipient that he or she

must verify compliance with his or her family self-sufficiency plan

within 10 business days.

independence specialist caseworker within 10 business days of the

determination that the recipient is noncompliant, the recipient is

subject to the provisions of subsection (10)(a).

(d) If the recipient fails to verify compliance under

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

subsection (10)(a).

(15) The meeting described in subsection (14) is only

available for the first time a family independence specialist

caseworker determines the recipient to be noncompliant regardless

of whether that recipient becomes subject to the provisions of

subsection (10)(a).

(16) 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. Beginning October 1, 2007, 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 and training (JET) 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,

has not received more than 2 penalties under section 57g after

December 31, 2006, has not received any penalties under section 57g

in the preceding 12 months, and labor market conditions or

employment barriers prevent employment placement, the 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 from work first participation under

section 57f.

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

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

Sec. 57u. (1) The department shall provide a report of

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

(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.

(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.

(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.

(7) Except for the reporting requirement provided in

subsection (6), all the reports required under this section shall

be provided on a quarterly basis 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.

house of representatives.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

(a) Senate Bill No. 1500.

(b) Senate Bill No. 1501.