HOUSE BILL No. 6580

 

September 20, 2006, Introduced by Reps. Kooiman, Stahl and Pastor and referred to the Committee on Family and Children Services.

 

     A bill to amend 1939 PA 280, entitled

 

"The social welfare act,"

 

by amending sections 14i, 57, 57a, and 57e (MCL 400.14i, 400.57,

 

400.57a, and 400.57e), section 14i as amended by 2005 PA 333,

 

section 57 as added by 1995 PA 223, section 57a as amended by 1999

 

PA 26, and section 57e as amended by 2001 PA 280, and by adding

 

section 57w.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 14i. Sections 57f(3)(c), (e), and (f) and 57g(4), (5),

 

(6), and (7) do not apply after  December 31, 2006  September 30,

 

2009.

 

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

 

57v:

 


     (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) "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.

 

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

 

independence program benefits are based if the family independence

 

assistance group has no net income.

 

     (j) "Personal responsibility plan" means a document described

 

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

 

family independence assistance.

 

     (k) "Personal work plan" means a document described in section

 

57d that is executed by a work first program participant in return

 


for receiving family independence assistance.

 

     (l)  (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.

 

     (m)  (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.

 

     (n)  (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.

 

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

 

inpatient services or participation in alcoholics anonymous or a

 

similar program.

 

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

 

supplemental security income provided under title XVI.

 

     (q)  (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. 57a. (1) The  family independence agency  department

 


shall establish and administer the family independence program to

 

provide assistance to families who are making efforts to achieve

 

independence.

 

     (2) The  family independence agency  department shall

 

administer the family independence program to accomplish all of the

 

following:

 

     (a) Provide financial support to eligible families while they

 

pursue self-improvement activities and engage in efforts to become

 

financially independent.

 

     (b) Ensure that recipients who are minor parents live in

 

adult-supervised households in order to reduce long-term dependency

 

on financial assistance.

 

     (c) Assist families in determining and overcoming the barriers

 

preventing them from achieving financial independence.

 

     (d) Ensure that families pursue other sources of support

 

available to them.

 

     (3) The  family independence agency  department shall

 

establish income and asset levels for eligibility, types of income

 

and assets to be considered in making eligibility determinations,

 

payment standards, composition of the program group and the family

 

independence assistance group, program budgeting and accounting

 

methods, and client reporting requirements to meet the following

 

goals:

 

     (a) Efficient, fair, cost-effective administration of the

 

family independence program.

 

     (b) Provision of family independence assistance to families

 

willing to work toward eventual self-sufficiency.

 


     (4) 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 section

 

57f. If the department determines that an individual is eligible to

 

participate in the work first program, family independence

 

assistance shall be paid to that individual for not longer than a

 

cumulative total of 48 months during that individual's lifetime.

 

Any month in which the unemployment rate in the county in which the

 

individual resides is higher than 10% shall not be counted toward

 

the cumulative total of 48 months in a lifetime for family

 

independence assistance. Any month in which an individual is

 

temporarily exempted from work first participation shall not be

 

counted toward the cumulative total of 48 months in a lifetime for

 

family independence assistance. If the recipient is meeting all the

 

requirements outlined in his or her personal responsibility plan

 

and personal work plan, has never received a penalty under section

 

57g, 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 shall prevent the

 

department from providing assistance to individuals who are

 

determined to be exempt under section 57f(3) or 56i(1)(c).

 

     (5) Not later than 30 days after the effective date of the

 

amendatory act that added this subsection, the department shall

 


determine the number of months each family independence assistance

 

recipient who is not exempt from work first participation under

 

section 57f has received family independence assistance. If the

 

department determines that a family independence assistance

 

recipient has received family independence assistance for a

 

cumulative total of 35 months or less as of the effective date of

 

the amendatory act that added this subsection, the 48-month

 

cumulative lifetime total described in subsection (4) applies to

 

that recipient. If the department determines that a family

 

independence assistance recipient has received family independence

 

assistance for a cumulative total of 36 months or more as of the

 

effective date of the amendatory act that added this subsection,

 

that recipient is required to meet with a department worker and

 

work first caseworker within 90 days after the effective date of

 

the amendatory act that added this subsection. At the time of the

 

meeting required in this subsection, a new personal work plan shall

 

be developed. Not later than 15 months after the effective date of

 

the amendatory act that added this subsection, if a recipient has

 

had the meeting required under this subsection and is meeting all

 

the requirements outlined in his or her personal work plan but

 

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. Nothing in this subsection shall prevent

 

the department from providing assistance to individuals who are

 

determined to be exempt under section 57f(3) or 56i(1)(c).

 

     (6)  (4)  Not later than October 1, 2001, the  family

 


independence agency  department shall implement an automated finger

 

imaging system designed to prevent an individual from receiving

 

cash assistance, food stamps, or both under more than 1 name.

 

Beginning at the effective date of the establishment and

 

implementation of the finger imaging system, an individual applying

 

for cash assistance, food stamps, or both must provide the  family

 

independence agency  department with an automated finger image or

 

images as a condition of eligibility. Finger imaging obtained

 

pursuant to  under this subsection shall be used only for the

 

purposes of reducing fraud in obtaining public benefits or

 

assistance under this act.

 

     (7)  (5)  The  family independence agency  department shall

 

establish the automated finger image system that, at a minimum,

 

includes the following:

 

     (a) Confidentiality of the automated finger image records

 

taken  pursuant  according to this section.

 

     (b) A system for administrative appeal of a matter relating to

 

the taking or verification of an individual's automated finger

 

image.

 

     (c) A requirement to exempt children from providing the

 

automated finger image unless there is a reasonable suspicion that

 

the family group is committing fraud. For the purpose of this

 

subdivision, "family group" means a family and all those

 

individuals living with a family who apply for or receive cash

 

assistance, food stamps, or both.

 

     (d) A requirement to exempt individuals from whom the

 

automated finger image technology is unable to obtain an accurate

 


finger image.

 

     (e) A requirement to exempt patients placed in nursing homes

 

from providing the automated finger image.

 

     (f) In addition to the population groups named in subdivisions

 

(c), (d), and (e), authority to exempt certain other population

 

groups from providing the automated finger image including, but not

 

limited to, homebound recipients.

 

     (8)  (6)  The  family independence agency  department shall

 

remove an individual's finger image from the department's file if

 

the individual has not received benefits or assistance from the

 

family independence agency  department within the previous 12

 

months.

 

     (9)  (7)  The  family independence agency  department may

 

negotiate and enter into a compact or reciprocal agreement with

 

another state department, the federal government, an agency of the

 

federal government, or an agency of another state for the purpose

 

of implementing and administering the finger imaging provisions of

 

this section as long as the compact or reciprocal agreement is not

 

inconsistent with the limitations of use and access contained in

 

subsection  (4)  (6).

 

     (10)  (8)  The  family independence agency  department shall

 

conduct  semi-annual  semiannual security reviews to monitor the

 

automated finger imaging system to insure that all of the following

 

occur:

 

     (a) All records maintained as part of the system are accurate

 

and complete.

 

     (b) Effective software and hardware designs have been

 


instituted with security features to prevent unauthorized access to

 

records.

 

     (c) Access to record information is restricted to authorized

 

personnel.

 

     (d) System and operational programs are used that will

 

prohibit inquiry, record updates, or destruction of records from a

 

terminal other than automated finger imaging system terminals that

 

are designated to permit inquiry, record updates, or destruction of

 

records.

 

     (e) System and operational programs are used to detect and

 

report all unauthorized attempts to penetrate an automated finger

 

imaging system, program, or file.

 

     (11)  (9)  Beginning December 31 of the first year the

 

automated finger imaging system has been fully implemented, the

 

family independence agency  department shall compile and report

 

annually to the senate and house committees having jurisdiction

 

over  family independence agency  department matters the following

 

information concerning the operation of the automated finger

 

imaging system:

 

     (a) An analysis of the costs and savings of the system

 

including, but not limited to, administrative costs, operation

 

costs, and actual savings due to confirmed fraud and fraud

 

deterrence.

 

     (b) The number of individuals who have applied for assistance

 

under more than 1 name.

 

     (c) The number of individuals refusing to provide a finger

 

image and the reasons for the refusal.

 


     (d) A detailed summary of the results of reviews required by

 

subsection  (8)  (10).

 

     (12)  (10)  Except as necessary to carry out a compact or

 

agreement under subsection  (7)  (9) or unless otherwise required

 

by law, the  family independence agency  department shall not sell,

 

transfer, or release information identifying an individual named in

 

the automated finger imaging system record to a third person,

 

including, but not limited to, another state department or agency.

 

     (13)  (11)  A person shall not disclose information from the

 

automated finger imaging system record in a manner that is not

 

authorized by law or rule. A  violation of  person who violates

 

this subsection is guilty of a misdemeanor punishable by

 

imprisonment for not more than 93 days or a fine of not more than

 

$500.00, or both.

 

     (14)  (12)  At the time an individual applies for cash

 

assistance, food stamps, or both, the  family independence agency  

 

department shall inform the individual of all of the following:

 

     (a) The requirement to allow the department to take a finger

 

image from the individual.

 

     (b) The fact that the finger image may be compared to the

 

finger images of other benefit recipients to prevent duplicate

 

participation.

 

     (c) The fact that the department is prohibited by law from

 

using the finger image for a different purpose.

 

     Sec. 57e. (1) Each family receiving family independence

 

assistance shall execute a  social contract  personal

 

responsibility plan outlining the responsibilities of members of

 


the family independence program assistance group, the contractual

 

nature of family independence program assistance, and the focus on

 

the goal of attaining self-sufficiency. The  social contract  

 

personal responsibility plan shall be developed  jointly  by the  

 

family independence agency  department and the adult family members  

 

and  of the family independence assistance program group. The

 

department shall complete a thorough assessment to facilitate

 

development of the personal responsibility plan, including

 

consideration of referral to a life skills program, and

 

determination as to whether the family independence assistance

 

program group's adult members are eligible to participate in the

 

work first program or are exempt from work first participation

 

under section 57g. The personal responsibility plan shall identify

 

compliance goals that are to be met by members of the family

 

independence assistance program group and goals and

 

responsibilities of the members of the family independence

 

assistance program group, the department, and the work first

 

program. The  social contract  personal responsibility plan shall

 

reflect the individual needs and abilities of the particular

 

family, and shall include at least all of the following:

 

     (a) The obligation of each adult and each child aged 16 or

 

older who is not attending elementary or secondary school full-time

 

to participate in the work first program unless exempt under

 

section 57f.

 

     (b) The obligation of each minor parent who has not completed

 

secondary school to attend school.

 

     (c) Except as provided in section 57f(3), the obligation of

 


each adult to engage in employment, work first activities,

 

education or training, community service activities, or self-

 

improvement activities, as determined appropriate by the  family

 

independence agency, up to 40 hours per week  department.

 

     (d) The obligation to cooperate in the establishment of

 

paternity and the procurement of child support, if applicable.

 

     (e) The obligation of a recipient who fails to comply with

 

compliance goals due to substance abuse to participate in substance

 

abuse treatment and submit to any periodic drug testing required by

 

the treatment program.

 

     (f) Any other obligation the  family independence agency  

 

department determines is necessary to enable the family to achieve

 

independence.

 

     (2) The  family independence agency  department shall monitor

 

each family's compliance with the  social contract  personal

 

responsibility plan.

 

     Sec. 57w. If a recipient requests a redetermination or to be

 

exempt from participation in work first under section 57f, the

 

department shall evaluate the individual with a work first

 

caseworker to determine whether the recipient is eligible to

 

participate in other activities as set forth in section 57e.

 

     Enacting section 1.  This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 6578(request no.

 

05674'06) of the 93rd Legislature is enacted into law.