January 8, 2003, Introduced by Senator JELINEK and referred to the Committee on Families and Human Services.
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
by amending sections 6, 41, 57, and 57a (MCL 400.6, 400.41,
400.57, and 400.57a), section 6 as amended and section 57 as
added by 1995 PA 223 and section 57a as amended by 1999 PA 26.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 6. (1) The family independence agency may promulgate
2 all rules necessary or desirable for the administration of
3 programs under this act. Rules shall be promulgated under the
4 administrative procedures
act of 1969, Act No. 306 of the Public
5 Acts of 1969, being
sections 24.201 to 24.328 of the Michigan
6 Compiled Laws.
Beginning 2 years after the effective date of
7 subsection (2), if the
Michigan supreme court rules that sections
8 45 and 46 of Act No.
306 of the Public Acts of 1969, being
9 sections 24.245 and
24.246 of the Michigan Compiled Laws, are
1 unconstitutional and a
statute requiring legislative review of
2 administrative rules
is not enacted within 90 days after the
3 Michigan supreme court ruling, this subsection does not apply
4 1969 PA 306, MCL 24.201 to 24.328.
5 (2) The family independence agency may develop regulations to
6 implement the goals and principles of assistance programs created
7 under this act, including all standards and policies related to
8 applicants and recipients that are necessary or desirable to
9 administer the programs.
These regulations are effective and
10 binding on all those
affected by the assistance programs. Except
11 for policies described
in subsections (3) and (4), regulations
12 described in this
subsection, setting standards and policies
13 necessary or desirable
to administer the programs, are exempt
14 until the expiration
of 12 months after the effective date of
15 this subsection from
the rule promulgation requirements of the
16 administrative
procedures act of 1969, Act No. 306 of the Public
17 Acts of 1969, being
sections 24.201 to 24.328 of the Michigan
18 Compiled Laws. Upon
the expiration of 12 months after the
19 effective date of this
subsection, regulations described in this
20 subsection are not
effective and binding unless processed as
21 emergency rules under
section 48 of Act No. 306 of the Public
22 Acts of 1969, being
section 24.248 of the Michigan Compiled Laws,
23 or promulgated in
accordance with Act No. 306 of the Public Acts
24 of 1969.
25 (3) The family independence agency may develop policies to
26 establish income and asset limits, types of income and assets to
27 be considered for eligibility, and payment standards for
1 assistance programs administered under this act. Policies
2 developed under this subsection are effective and binding on all
3 those affected by the assistance programs. For an adult who is
4 unable to live without assistance due to physical or mental
5 disability and who does not live in a health facility or agency
6 as defined in section 20106 or rules promulgated under section
7 20115 of the public health code, 1978 PA 368, MCL 333.20106 and
8 333.20115, a policy establishing income and asset limits
9 developed under this subsection shall consider only that adult's
10 income and assets in determining eligibility. Policies described
11 in this subsection are exempt from the rule promulgation
12 requirements of Act
No. 306 of the Public Acts of 1969 the
13 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
14 24.328. Not less than 30 days before policies developed under
15 this subsection are implemented, they shall be submitted to the
16 senate and house standing committees and appropriation
17 subcommittees with oversight of human services.
18 (4) The family independence agency may develop policies to
19 implement requirements that are mandated by federal statute or
20 regulations as a condition of receipt of federal funds. Policies
21 developed under this subsection are effective and binding on all
22 those affected by the programs. Policies described in this
23 subsection are exempt from the rule promulgation requirements of
24 Act No. 306 of the
Public Acts of 1969 the
administrative
25 procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
26 (5) All rules, regulations, and policies established by the
27 family independence agency shall be in writing, shall be provided
1 to the legislature, and shall be made available for inspection by
2 any member of the public at all offices of the family
3 independence agency during regular business hours.
4 (6) Until the
expiration of 12 months after the effective
5 date of this
subsection, a bipartisan task force of legislators
6 appointed in the same
manner as members are appointed to standing
7 committees of the
legislature shall meet regularly with the
8 family independence
agency to review proposed policies and
9 regulations for the
family independence program. Meetings of the
10 bipartisan task force
are subject to the open meetings act, Act
11 No. 267 of the Public
Acts of 1976, being sections 15.261 to
12 15.275 of the Michigan
Compiled Laws.
13 (6) (7) Subsection
(2) does not apply to standards and
14 policies related to the
providers a provider of services which
15 have that has a written contractual relationship or
are that
16 is an enrolled medicaid provider with the family independence
17 agency.
18 Sec. 41. If at any time after approval of a grant of
19 assistance the recipient ,
or, except as provided in this
20 section, the spouse of
the recipient , becomes possessed of any
21 property or income of
which the county department of social
22 welfare family independence agency has no knowledge,
it shall be
23 the duty of the recipient
to notify said that county
24 department, of
social welfare which shall report and make
25 recommendations to the state department, which in turn may
26 cancel, suspend, or alter the certificate of allowance. This
27 section does not apply to the spouse of an adult who is unable to
1 live without assistance due to physical or mental disability and
2 who does not live in a health facility or agency as defined in
3 section 20106 or rules promulgated under section 20115 of the
4 public health code, 1978 PA 368, MCL 333.20106 and 333.20115.
5 Sec. 57. (1) As used in this section and sections 57a to
6 57g 57l:
7 (a) "Adult-supervised household" means either of the
8 following:
9 (i) The place of residence of a parent, stepparent, or legal
10 guardian of a minor parent.
11 (ii) A living arrangement not described in subparagraph (i)
12 that the family independence agency approves as a family setting
13 that provides care and control of a minor parent and his or her
14 child and supportive services including, but not limited to,
15 counseling, guidance, or supervision.
16 (b) "Caretaker" means an individual who is acting as parent
17 for a child in the absence or because of the disability of the
18 child's parent or stepparent and who is the child's legal
19 guardian, grandparent, great grandparent, great-great
20 grandparent, sibling, stepsibling, aunt, great aunt, great-great
21 aunt, uncle, great uncle, great-great uncle, nephew, niece, first
22 cousin, or first cousin
once-removed, a spouse of any a person
23 listed above, a parent of the putative father, or an unrelated
24 individual aged 21 or older whose appointment as legal guardian
25 of the child is pending.
26 (c) "Child" means an individual who is not emancipated under
27 Act No. 293 of the
Public Acts of 1968, being sections 722.1 to
1 722.6 of the Michigan
Compiled Laws 1968 PA 293, MCL
722.1 to
2 722.6, who lives with a parent or caretaker, and who is either of
3 the following:
4 (i) Under the age of 18.
5 (ii) Age 18 or 19, a full-time high school student, and
6 reasonably expected to graduate from high school before the age
7 of 20.
8 (d) "Family" means 1 or more of the following:
9 (i) A household consisting of a child and either of the
10 following:
11 (A) A parent or stepparent of the child.
12 (B) A caretaker of the child.
13 (ii) A pregnant woman.
14 (iii) A parent of a child in foster care.
15 (iv) An adult who is unable to live without assistance due
16 to physical or mental disability and who does not live in a
17 health facility or agency as defined in section 20106 or rules
18 promulgated under section 20115 of the public health code, 1978
19 PA 368, MCL 333.20106 and 333.20115.
20 (e) "Family independence assistance" means financial
21 assistance provided to a family under the family independence
22 program.
23 (f) "Family independence assistance group" means all those
24 members of a program group who receive family independence
25 assistance.
26 (g) "Family independence program" means the program of
27 financial assistance established under section 57a.
1 (h) "Minor parent" means an individual under the age of 18
2 who is not emancipated
under Act No. 293 of the Public Acts of
3 1968 1968 PA 293, MCL 722.1 to 722.6, and who is
either the
4 biological parent of a child living in the same household or a
5 pregnant woman.
6 (i) "Payment standard" means the standard upon which family
7 independence program benefits are based if the family
8 independence assistance group has no net income.
9 (j) "Program group" means a family and all those individuals
10 living with a family whose income and assets are considered for
11 purposes of determining financial eligibility for family
12 independence assistance.
13 (k) "Recipient" means an individual receiving family
14 independence assistance.
15 (l) "Social contract" means a document described in section
16 57e that is executed by a family in return for the receipt of
17 family independence assistance.
18 (m) "Substance abuse" means that term as defined in section
19 6107 of the public health
code, Act No. 368 of the Public Acts
20 of 1978, being section
333.6107 of the Michigan Compiled Laws
21 1978 PA 368, MCL 333.6107.
22 (n) "Substance abuse treatment" means outpatient or
23 inpatient services or participation in alcoholics anonymous or a
24 similar program.
25 (o) "Work first" means the program of employment and
26 training administered by
the Michigan jobs commission
27 department of career development for applicants and recipients of
1 family independence assistance.
2 (2) A reference in this act to "aid to dependent children"
3 or "aid to families with dependent children" means "family
4 independence assistance".
5 Sec. 57a. (1) The family independence agency shall
6 establish and administer the family independence program to
7 provide assistance to families who are making efforts to achieve
8 independence.
9 (2) The family independence agency shall administer the
10 family independence program to accomplish all of the following:
11 (a) Provide financial support to eligible families while they
12 pursue self-improvement activities and engage in efforts to
13 become financially independent.
14 (b) Ensure that recipients who are minor parents live in
15 adult-supervised households in order to reduce long-term
16 dependency on financial assistance.
17 (c) Assist families in determining and overcoming the
18 barriers preventing them from achieving financial independence.
19 (d) Ensure that families pursue other sources of support
20 available to them.
21 (3) The Subject
to subsection (4), the family independence
22 agency shall establish income and asset levels for eligibility,
23 types of income and assets to be considered in making eligibility
24 determinations, payment standards, composition of the program
25 group and the family independence assistance group, program
26 budgeting and accounting methods, and client reporting
27 requirements to meet the following goals:
1 (a) Efficient, fair, cost-effective administration of the
2 family independence program.
3 (b) Provision of family independence assistance to families
4 willing to work toward eventual self-sufficiency.
5 (4) In determining whether an adult who is unable to live
6 without assistance due to physical or mental disability and who
7 does not live in a health facility or agency as defined in
8 section 20106 or rules promulgated under section 20115 of the
9 public health code, 1978 PA 368, MCL 333.20106 and 333.20115,
10 meets the income and asset levels requirement established under
11 subsection (3), the family independence agency shall consider
12 only that adult's income and assets.
13 (5) (4) Not
later than October 1, 2001, the family
14 independence agency shall implement an automated finger imaging
15 system designed to prevent an individual from receiving cash
16 assistance, food stamps, or both under more than 1 name.
17 Beginning at the effective date of the establishment and
18 implementation of the finger imaging system, an individual
19 applying for cash assistance, food stamps, or both must provide
20 the family independence agency with an automated finger image or
21 images as a condition of eligibility. Finger imaging obtained
22 pursuant to in accordance with this subsection shall be
used
23 only for the purposes of reducing fraud in obtaining public
24 benefits or assistance under this act.
25 (6) (5) The
family independence agency shall establish the
26 automated finger image system that, at a minimum, includes the
27 following:
1 (a) Confidentiality of the automated finger image records
2 taken pursuant to in
accordance with this section.
3 (b) A system for administrative appeal of a matter relating
4 to the taking or verification of an individual's automated finger
5 image.
6 (c) A requirement to exempt children from providing the
7 automated finger image unless there is a reasonable suspicion
8 that the family group is committing fraud. For the purpose of
9 this subdivision, "family group" means a family and all those
10 individuals living with a family who apply for or receive cash
11 assistance, food stamps, or both.
12 (d) A requirement to exempt individuals from whom the
13 automated finger image technology is unable to obtain an accurate
14 finger image.
15 (e) A requirement to exempt patients placed in nursing homes
16 from providing the automated finger image.
17 (f) In addition to the population groups named in
18 subdivisions (c), (d), and (e), authority to exempt certain other
19 population groups from providing the automated finger image
20 including, but not limited to, homebound recipients.
21 (7) (6) The
family independence agency shall remove an
22 individual's finger image from the department's file if the
23 individual has not received benefits or assistance from the
24 family independence agency within the previous 12 months.
25 (8) (7) The
family independence agency may negotiate and
26 enter into a compact or reciprocal agreement with another state
27 department, the federal government, an agency of the federal
1 government, or an agency of another state for the purpose of
2 implementing and administering the finger imaging provisions of
3 this section as long as the compact or reciprocal agreement is
4 not inconsistent with the limitations of use and access contained
5 in subsection (4) (5).
6 (9) (8) The
family independence agency shall conduct
7 semi-annual security reviews to monitor the automated finger
8 imaging system to insure that all of the following occur:
9 (a) All records maintained as part of the system are accurate
10 and complete.
11 (b) Effective software and hardware designs have been
12 instituted with security features to prevent unauthorized access
13 to records.
14 (c) Access to record information is restricted to authorized
15 personnel.
16 (d) System and operational programs are used that will
17 prohibit inquiry, record updates, or destruction of records from
18 a terminal other than automated finger imaging system terminals
19 that are designated to permit inquiry, record updates, or
20 destruction of records.
21 (e) System and operational programs are used to detect and
22 report all unauthorized attempts to penetrate an automated finger
23 imaging system, program, or file.
24 (10) (9) Beginning
December 31 of the first year the
25 automated finger imaging system has been fully implemented, the
26 family independence agency shall compile and report annually to
27 the senate and house committees having jurisdiction over family
1 independence agency matters the following information concerning
2 the operation of the automated finger imaging system:
3 (a) An analysis of the costs and savings of the system
4 including, but not limited to, administrative costs, operation
5 costs, and actual savings due to confirmed fraud and fraud
6 deterrence.
7 (b) The number of individuals who have applied for assistance
8 under more than 1 name.
9 (c) The number of individuals refusing to provide a finger
10 image and the reasons for the refusal.
11 (d) A detailed summary of the results of reviews required by
12 subsection (8) (9).
13 (11) (10) Except
as necessary to carry out a compact or
14 agreement under
subsection (7) (8) or unless otherwise required
15 by law, the family independence agency shall not sell, transfer,
16 or release information identifying an individual named in the
17 automated finger imaging system record to a third person,
18 including, but not limited to, another state department or
19 agency.
20 (12) (11) A
person shall not disclose information from the
21 automated finger imaging system record in a manner that is not
22 authorized by law or rule. A violation of this subsection is a
23 misdemeanor punishable by imprisonment for not more than 93 days
24 or a fine of not more than $500.00, or both.
25 (13) (12) At
the time an individual applies for cash
26 assistance, food stamps, or both, the family independence agency
27 shall inform the individual of all of the following:
1 (a) The requirement to allow the department to take a finger
2 image from the individual.
3 (b) The fact that the finger image may be compared to the
4 finger images of other benefit recipients to prevent duplicate
5 participation.
6 (c) The fact that the department is prohibited by law from
7 using the finger image for a different purpose.