HB-5438, As Passed Senate, December 8, 2005

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5438

     A bill to amend 1939 PA 280, entitled

"The social welfare act,"

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

400.57, 400.57a, 400.57d, and 400.57e), section 14i as amended by

2004 PA 571, section 57 as added by 1995 PA 223, section 57a as

amended by 1999 PA 26, and sections 57d and 57e as amended by 2001

PA 280.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 14i. Section 57f(3)(c), (e), and (f) and section 57g(4),

(5), (6), and (7)  shall  do not apply after December 31,  2005

2010.

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

57u:

     (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 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

House Bill No. 5438 as amended December 8, 2005

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 deferred 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 family self-sufficiency plan,

has never received a sanction 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 sections 57f(3) or 56i(1)(c).>>

     (5) Not later than 90 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

House Bill No. 5438 as amended December 8, 2005

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 30 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 family self-sufficiency plan shall be developed.

Not later than 12 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 family self-sufficiency 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 over the 48-month cumulative lifetime

total. <<NOTHING IN THIS SUBSECTION SHALL PREVENT THE DEPARTMENT FROM

PROVIDING ASSISTANCE TO INDIVIDUALS WHO ARE DETERMINED 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. 57d. (1) The department  of career development and the

family independence agency  department of labor and economic growth

shall conduct joint orientation sessions for family independence

assistance applicants no less frequently than weekly. After the

family independence agency  department makes an initial

determination that an adult or a child aged 16 or older who is not

attending elementary or secondary school full-time might be

eligible for family independence assistance, that individual shall

attend a joint orientation session as a condition of eligibility

prior to receipt of family independence assistance. After

completion of the orientation, the individual,  and the  family

independence agency  department, and a work first representative

shall develop the family's  social contract  family self-

sufficiency plan in accordance with section 57e.

     (2) If the individual fails to cooperate with work first joint

orientation or other required employment and training activities,

the family is ineligible for family independence assistance.

     (3) The  family independence agency  department shall impose

penalties under section 57g if the individual fails to comply with

any of the following:

     (a) Work first activities.

     (b) Employment and training activities.

     (c) Child support requirements.

     (4) The  family independence agency may  department shall

impose penalties under section 57g if the individual fails to

comply with the individual's  social contract  family self-

sufficiency plan requirements.

     (5) If the individual is complying with the  social contract

family self-sufficiency plan, the  family independence agency

department, a work first representative, and the recipient shall

revise the  social contract  family self-sufficiency plan if

necessary and the family independence assistance group shall

continue to receive family independence assistance so long as the

recipients meet family independence assistance program

requirements.

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

assistance shall execute a  social contract  family self-

sufficiency plan outlining the responsibilities of members of the

family independence assistance group. The  social contract  family

self-sufficiency plan shall be developed jointly by the  family

independence agency  department, a work first representative, and

the adult family members  and  of the family independence

assistance group. The department and the work first representative

shall complete a thorough assessment to facilitate development of

the family self-sufficiency plan, including consideration of

referral to a life skills program, and determination as to whether

the family independence assistance group's adult members are

eligible to participate in the work first program or are exempt

from work first participation under section 57f. If the department

and the work first caseworker determine that an individual is

exempt from participation in work first, the department and work

first caseworker shall evaluate the individual to determine his or

her eligibility to participate in other activities, including work,

volunteerism, or community service. If an individual is eligible to

participate in other activities, including work, volunteerism, or

community service, the department and work first caseworker shall

refer him or her to those activities. The family self-sufficiency

plan shall identify compliance goals that are to be met by members

of the family independence assistance group and goals and

responsibilities of the members of the family independence

assistance group, the department, and the work first program. The

social contract  family self-sufficiency 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 work first 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  department, up to 40 hours per week.

     (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  family self-

sufficiency plan.

     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. 892.

     (b) Senate Bill No. 893.

     (c) Senate Bill No. 894.

     (d) House Bill No. 5439.

     (e) House Bill No. 5440.

     (f) House Bill No. 5441.

     (g) House Bill No. 5442.