HB-4482, As Passed Senate, May 17, 2007

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4482

     A bill to amend 1939 PA 280, entitled

"The social welfare act,"

by amending sections 57d, 57g, and 57r (MCL 400.57d, 400.57g, and

400.57r), section 57d as amended by 2005 PA 323 and section 57g as

amended and section 57r as added by 2006 PA 468.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 57d. (1) The department and the department of labor and

economic growth shall conduct joint weekly orientation sessions for

family independence assistance applicants. no less frequently than

weekly. After the 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 is may be eligible for family

independence assistance and is not exempt from work first

participation under section 57f, that individual shall attend a

joint orientation session. After completion of the orientation, the

participate in assigned work-related activities. The individual,

the department, and a work first representative shall develop the

family's family self-sufficiency plan in accordance with section

57e.

     (2) If the individual an applicant who is not exempt from work

first participation under section 57f fails to cooperate with work

first or other required employment and training activities, the

family is ineligible for family independence assistance.

     (3) The department shall impose penalties under section 57g if

the individual a recipient fails to comply with any of the

following:

     (a) Work first activities.

     (b) Employment and training activities.

     (c) Child support requirements.

     (4) The department shall impose penalties under section 57g if

the individual fails to comply with the individual's family self-

sufficiency plan's requirements.

     (5) If the individual is complying with the family self-

sufficiency plan, the department, a work first representative, and

the recipient shall revise the 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.

     (6) The department shall reassess the recipient's eligibility

for family independence assistance not later than 24 months after

the date the application for family independence assistance was

approved. At the time of a reassessment under this subsection, the

recipient shall meet with his or her department caseworker and work

first program caseworker and redevelop the family self-sufficiency

plan.

     Sec. 57g. (1) The 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

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 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

House Bill 4482 as amended May 17, 2007

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 department shall determine if good

cause for noncompliance exists. The 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 subsections (1) to (8),

"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.

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

social contract requirements, the 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 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 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.

     (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.

House Bill No. 4482 as amended May 17, 2007

     (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

family is ineligible to receive family independence program

assistance for not less than 3 calendar months.

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

family is ineligible to receive family independence program

assistance for not less than 3 calendar months.

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

family is ineligible to receive family independence program

assistance for 12 calendar months.

     (11) For the purposes of this section subsections (10) to

<<(16)>>, "noncompliance" means 1 or more of the following:

     (a) A recipient quits a job.

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

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

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

sufficiency plan.

     (12) <<If For any instance of noncompliance, the recipient shall

receive not less than 12 days' notice before the penalties prescribed in this section are imposed. If the recipient demonstrates good cause for the noncompliance during this period and 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).

     (c) Either employment or training commuting time is more than

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

House Bill No. 4482 as amended May 17, 2007

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.

     (c) If the recipient fails to meet with the family

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) 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.

(17)(16)>> This section does not apply after September 30, 2011.

     Sec. 57r. (1) 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 October 1, 2007, 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.

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