HB-4309, As Passed House, May 18, 2006
SUBSTITUTE FOR
HOUSE BILL NO. 4309
A bill to make, supplement, and adjust appropriations for
various state departments and agencies for the fiscal year ending
September 30, 2006; to provide for the expenditure of the
appropriations; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the various state
departments and agencies to supplement appropriations for the
fiscal year ending September 30, 2006, from the following funds:
APPROPRIATION SUMMARY:
Full-time equated classified positions........... 80.0
GROSS APPROPRIATION.................................... $ (400,000)
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ (400,000)
Total federal revenues................................. 0
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ (400,000)
Sec. 102. DEPARTMENT OF HUMAN SERVICES
(1) APPROPRIATION SUMMARY
Full-time equated classified positions........... 80.0
GROSS APPROPRIATION.................................... $ (12,900,000)
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ (12,900,000)
Total federal revenues................................. 0
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ (12,900,000)
(2) PUBLIC ASSISTANCE
Family independence program............................ $ (392,121,800)
Family independence program............................ 392,121,800
Family independence program............................ (14,344,300)
State disability assistance............................ (390,000)
GROSS APPROPRIATION.................................... $ (14,734,300)
Appropriated from:
Federal revenues:
Total federal revenues................................. (996,500)
State general fund/general purpose..................... $ (13,737,800)
(3) CENTRAL SUPPORT ACCOUNTS
Travel................................................. $ 12,800
Payroll taxes and fringe benefits...................... 431,300
GROSS APPROPRIATION.................................... $ 444,100
Appropriated from:
Federal revenues:
Total federal revenues................................. 310,900
Special revenue funds:
State general fund/general purpose..................... $ 133,200
(4) LOCAL OFFICE STAFF AND OPERATIONS
Full-time equated classified positions........... 80.0
Field staff, salaries and wages--80.0 FTE positions.... $ 806,500
Contractual services, supplies, and materials.......... 8,700
SSI advocates.......................................... 575,000
GROSS APPROPRIATION.................................... $ 1,390,200
Appropriated from:
Federal revenues:
Total federal revenues................................. 685,600
Special revenue funds:
State general fund/general purpose..................... $ 704,600
Sec. 103. DEPARTMENT OF LABOR AND ECONOMIC GROWTH
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION.................................... $ 12,500,000
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 12,500,000
Total federal revenues................................. 0
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ 12,500,000
(2) DEPARTMENT GRANTS
Welfare-to-work programs............................... $ (113,798,600)
Welfare-to-work programs............................... 113,798,600
Welfare-to-work programs............................... 12,500,000
GROSS APPROPRIATION.................................... $ 12,500,000
Appropriated from:
State general fund/general purpose..................... $ 12,500,000
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. In accordance with the provisions of section 30 of
article IX of the state constitution of 1963, total state spending
from state resources in this appropriation act for the fiscal year
ending September 30, 2006 is ($400,000.00) and state appropriations
paid to local units of government are $0.
Sec. 202. The appropriations made and expenditures authorized
under this act and the departments, commissions, boards, offices,
and programs for which appropriations are made under this act are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
HUMAN SERVICES
Sec. 301. (1) Beginning December 31, 2006, if the department
has determined that an individual is eligible to participate in the
work first program, family independence program assistance shall be
paid to that individual's program group for not longer than a
cumulative total of 48 months after the establishment of the
state's temporary assistance for needy families program on October
1, 1996. 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 for family
independence program assistance. Any month in which all adult
recipients in the program group are temporarily exempted from work
first participation shall not be counted toward the cumulative
total of 48 months for family independence program assistance.
(2) If the department determines that an individual is
eligible to participate in the work first program, family
independence program assistance shall not be paid to that
individual's program group for longer than 24 consecutive months
during any period starting with the first payment received after
December 31, 2006 or after the completion of the individual's
personal responsibility plan and personal work plan, whichever is
House Bill No. 4309 (H-4) as amended May 18, 2006
earlier. Once assistance is suspended under this subsection, the
individual shall remain ineligible for further assistance for a
period of 12 months.
(3) Nothing in this section prevents the department from
providing family independence program assistance to program groups
in which adult recipients are determined to be exempt under section
57f(3) or 56i(1)(c) of the social welfare act, 1939 PA 280, MCL
400.57f and 400.56i.
Sec. 302. (1) If a family independence program assistance
recipient does not meet the recipient’s personal responsibility
plan or personal work plan requirements, the department shall
impose a penalty.
(2) The department shall implement a schedule of sanctions for
instances of noncompliance as described in this subsection. After
termination of family independence program assistance, the penalty
shall be as follows:
(a) For the first instance of noncompliance, the recipient's
program group is ineligible for family independence program
assistance for not less than 3 calendar months.
(b) For the second instance of noncompliance, the recipient's
program group is ineligible for family independence program
assistance for not less than 3 calendar months.
(c) For a third instance of noncompliance, the recipient's
program group is ineligible for family independence program
assistance for not less than [24] calendar months.
(d) For a fourth instance of noncompliance, the recipient's
group is permanently ineligible for family independence program
House Bill No. 4309 (H-4) as amended May 18, 2006
assistance.
(3) For the first, second, and third instances of
noncompliance resulting in termination of family independence
assistance for any period of time, both of the following apply:
(a) Family independence program assistance may be approved to
begin at the conclusion of the sanction period if the recipient
attends a joint meeting with his or her family independence
specialist caseworker and work first program caseworker and
develops an approved corrective action plan. The meeting shall
include a discussion and official warning regarding sanctions that
may be imposed for future instances of noncompliance.
(b) The period of time the recipient is ineligible to receive
family independence program assistance applies toward the
recipient's 48-month cumulative total established in section 301.
[(4) A recipient not receiving family independence program assistance due to a sanction or other temporary disqualification shall still be required to meet his or her mandatory work requirements for the last 30 days of the period of ineligibility unless that recipient is exempt from these requirements for other reasons.]
Sec. 303. From the funds appropriated in part 1 for family
independence program, in calculating family assistance monthly
benefit amounts, the department shall disregard earned income from
the amount subtracted from a program group's payment standard in
accordance with the following provisions:
(a) For program groups in which all adults are exempt from the
work first program, the department shall disregard the first
$200.00 of earned income plus 20% of any remaining earned income.
(b) For program groups that contain an adult not exempt from
the work first program and that are meeting the relevant federal
work participation requirement, the department shall disregard the
first $200.00 of earned income plus 20% of any remaining earned
income.
(c) For program groups that contain an adult not exempt from
the work first program but that are not meeting the relevant
federal work participation requirement, the department shall
disregard 20% of any earned income.
Sec. 304. (1) All adult family independence program assistance
recipients exempt from the work first program requirements on the
basis of incapacitation as referenced in section 57f(3)(f)(ii) of
the social welfare act, 1939 PA 280, MCL 400.57f, but who have not
yet qualified for federal supplemental security income assistance
shall be referred to a Michigan works agency that will refer the
recipient to a community-based organization with demonstrated
ability of providing vocational rehabilitation and evaluation
services for persons with disabilities for further assessment.
Based on this assessment, recipients shall be categorized as 1 of
the following:
(a) Able to participate in outside work.
(b) Able to participate in work with some support. The
department shall contract with a qualified community-based
organization to provide employment and rehabilitation services for
these individuals.
(c) Likely eligible for federal supplemental security income.
These individuals will be referred to the legal services
association of Michigan for SSI advocacy assistance. The department
shall contract with the legal services association of Michigan for
SSI advocacy services at a cost not to exceed $650.00 per case.
Contract funding shall be outcomes-based, with not more than
$350.00 provided upon referral and not more than $300.00 paid based
upon successfully gaining SSI eligibility for the applicant.
(2) By September 30, 2006, the department shall complete the
assessments for all applicable family independence assistance
program clients with cases open as of the effective date of this
act.
Sec. 305. The department shall submit a report to the house
and senate appropriations subcommittees on the department budget,
the house and senate fiscal agencies, the house and senate policy
offices, and the state budget office by October 15, 2006 on the
results of the department's assessments of family independence
program clients exempted from work first due to a claimed
disability. The report shall outline the number of clients who
were:
(a) Determined work ready and referred to the work first
program.
(b) Determined work ready with additional support and referred
to a qualified community-based organization for further assessment
and employment and rehabilitation services.
(c) Determined likely to be eligible for federal SSI
assistance and referred to legal services association.
Sec. 306. (1) In determining a program group's family
independence program assistance monthly payment standard, the
department shall not take into consideration in calculating the
payment standard the geographical area or shelter area in which the
program group resides. The department shall not adjust a program
group's family independence program assistance payment standard
based on whether a recipient is exempt from the work first program
requirements.
(2) The family independence program assistance monthly payment
standard for households in which only eligible children are counted
in determining family size or in which the grantee is receiving
supplemental security income shall be paid at an amount not to
exceed the amount per family size listed as follows:
Family Size Grant Level
1 $137.00
2 $266.00
3 $411.00
4 $548.00
5 $689.00
6 $828.00
7 $910.00
(3) For all other individuals eligible to receive family
independence program assistance who are not described under
subsection (2), the family independence program assistance monthly
payment standard shall be paid at an amount not to exceed the
amount per family size listed as follows:
Family Size Grant Level
1 $276.00
2 $371.00
3 $459.00
4 $563.00
5 $659.00
6 $792.00
7 $868.00
House Bill No. 4309 (H-4) as amended May 18, 2006 (1 of 2)
(4) For the purposes of determining the payment standard under
subsections (2) and (3), for a family of 8 or more the payment
standard is increased by $79.00 for each additional family member
over 7.
Sec. 307. Appropriations in part 1 include funding for an
additional 80 new specialized field office staff positions to
facilitate the statewide expansion of the department's existing
pilot program aimed at assisting long-term welfare recipients. The
expanded "Express JET" program would provide each county at least 1
specialized staff member assigned to monitor both cases that are
referred to the work first program and cases that are referred back
to the department from work first due to compliance issues. These
specialized staff would ensure that all client work activities are
recognized and counted as well as prompt action on cases moving
between the department and work first, including the application of
sanctions where necessary. The goal of the program is to maximize
client engagement in work participation activities that are
countable toward federal requirements. The 80 new positions are in
addition to the 22 positions already included in the fiscal year
2005-2006 budget for the existing pilot program.
[Sec. 308. An individual who has been convicted of a felony under part 74 of the public health code, 1978 PA 368, MCL 333.7401 to 333.7461, on or after January 1, 1997 is not eligible to receive assistance under the family independence program.
Sec. 309. An individual who has been convicted of a violent felony as that term is defined under section 36 of the corrections code of 1953, 1953 PA 232, MCL 791.236, or of section 158 of the Michigan penal code, 1931 PA 328, MCL 750.158, is not eligible to receive assistance under the family independence program.
Sec. 310. An individual who is a fugitive from justice or who has been found in violation of his or her probation or parole is not eligible to receive assistance under the family independence program. The department shall cooperate with law enforcement officials in investigations of such individuals and shall provide law enforcement officials with the last known address of such individuals when requested.
Sec. 311. The department shall implement a pilot program of suspicion-based substance abuse testing as a condition for family independence assistance eligibility according to a protocol that includes all of the following steps:
(a) The department administers a substance abuse survey.
(b) A substance abuse professional screens the individual for suspicion of substance abuse using an empirically validated substance abuse screening tool in a 1-on-1 contact.
(c) The substance abuse professional gathers additional information about the individual, including information gathered from a drug-screening test.
(d) The substance abuse professional determines the level of treatment needed and makes the appropriate referral.
Sec. 312. The department shall obtain proof from all family independence program recipients that they are legal United States citizens or are otherwise legally residing in this country before approving cash assistance. In all instances in which the department becomes aware that a person that is residing in this country illegally has either obtained or applied for public assistance, the department shall refer the matter to an appropriate law enforcement authority for further action.]
LABOR AND ECONOMIC GROWTH
Sec. 401. (1) The appropriation in part 1 to the department
for the work first program shall be expended for grants that
provide unsubsidized employment, subsidized private employment,
work experience, on-the-job training, job search and job readiness
assistance, community service, vocational educational training, GED
completion, job skills training, education directly related to
employment, and child care services to those providing community
service to department of human services recipients and may, as
resources are available, be expended for grants that provide those
services to former family independence program recipients, as well
as to recipients of noncash public assistance, specifically child
day care, Medicaid, or food stamp benefits. The work first program,
however, shall not be construed to be an entitlement to services.
Any unexpended portion of the appropriation in part 1 for the work
first program shall be carried forward into the subsequent fiscal
year and be available for expenditure.
(2) An applicant's participation in the work first program
shall be limited to a Michigan works! agency. The Michigan works!
agency shall contract for services with a school district,
intermediate school district, community college, public or private
nonprofit college or university, nonprofit organization that
provides school-to-work transition programs or that provides
employment and training services or vocational rehabilitation
programs or state licensed accredited vocational or technical
education programs, proprietary school licensed by the state board
of education, local workforce development board, or a consortium
consisting of any combination of school districts, intermediate
school districts, community colleges, nonprofit organizations
described in this subsection, licensed proprietary schools, or
public or private nonprofit colleges or universities described in
this subsection.
(3) The department and the department of human services shall
House Bill No. 4309 (H-4) as amended May 18, 2006
develop a process, a set of procedures, and an instrument for
providing confidential screening of individuals after the
eligibility determination. The department shall do the following,
as applicable, based on the screening:
(a) An individual who is determined to be work eligible and
job ready shall be provided assistance with job search and job
placement. The individual shall also be referred to local agencies
for GED completion, literacy training, or vocational training
opportunities as needed.
(b) An individual who is determined to be work eligible but
lacking job skills, education, or training or to have substance
abuse problems shall be provided job training, GED completion,
literacy training, English as a second language, vocational
training, substance abuse treatment, job coaching, and life skills
training for not more than 12 months.
(c) An individual who has applied or intends to apply for SSI,
has mental or physical impairments, or has other similar
impediments shall be referred to a [community-based organization with
demonstrated ability of providing vocational rehabilitation and evaluation services for persons with disabilities] for a more thorough evaluation and
assessment of work participation level. The department shall do the
following, as applicable, based on that evaluation and assessment:
(i) If the individual is able to participate in outside work,
he or she shall be referred back to a Michigan works! agency for
work activities, including job search and placement, vocational
education, literacy training, GED completion, and other similar
programs.
(ii) If the individual is able to participate in work but needs
House Bill No. 4309 (H-4) as amended May 18, 2006
a supported work environment, he or she shall continue employment
activities [with a qualified community-based organization].
(iii) If the individual is eligible for SSI or disability, he or
she shall be referred to the department of human services that will
refer the recipient to the legal services association of Michigan
for the SSA advocacy program. The department of human services
shall contract with the legal services association of Michigan at a
rate not to exceed $350.00 for each referral and $300.00 for each
successful applicant.
(4) Work first program participants shall include recipients
of the department of human services program established under
section 57a of the social welfare act, 1939 PA 280, MCL 400.57a,
and individuals who are referred to a job club program by a county
department of human services board or a county friend of the court
if the participation in the job club is part of an application
submitted under this section.
(5) Participants in the work first program shall not be
enrolled and counted in membership in a school district or
intermediate school district.
(6) The department will work with the department of human
services to coordinate support services to work first participants
relating to special or emergency needs.
(7) Work first program participants shall be given an
explanation of the program including their benefits and
responsibilities during development of the personal work plan and
personal responsibility plan as developed respectively by a
Michigan works! agency and the department of human services. This
explanation shall include clear guidelines with regard to an
individual's eligibility for postemployment training support and
for applying hours in training toward work requirements. The
department, the department of human services, and the Michigan
works! agencies shall develop and implement a shared assessment
process and evaluation tool to identify barriers that may prevent
the participant from obtaining employment in an occupationally
relevant and demand-driven occupation and assistance that may be
needed to remove the barriers, including transportation, education,
and job training.
(8) The department shall make every effort to place a minimum
of 50% of clients who participate in the work first program in
positions that provide wages of $8.00 per hour or more.
(9) The department shall provide to the subcommittees of the
house and senate appropriations committees with jurisdiction over
the budgets for the department of human services and the department
of labor and economic growth, the fiscal agencies, and the state
budget director by May 15 and November 15 of each year a report on
the work first grants and programs. The report due by May 15 shall
provide the information described in this subsection for each
Michigan works! agency grant or contract awarded during the
immediately preceding 2 quarters of the state fiscal year. The
report due by November 15 shall provide the information described
in this subsection for each grant or contract awarded during the
immediately preceding full fiscal year. The reports shall contain
all of the following:
(a) The amount and recipient of each grant or contract.
(b) The number of participants in each service delivery area
and all of the following:
(i) The number of participants who meet federal work
participation requirements.
(ii) The number of participants who located employment through
work first in unsubsidized employment.
(iii) The number of participants who located employment through
work first in subsidized private employment.
(iv) The average wage of participants who found employment.
(v) The number of participants who retained their jobs for 6
months.
(vi) The number of participants placed in employment training
and education programs including each of the following programs:
(A) Work experience.
(B) On-the-job training.
(C) Job search or job readiness assistance.
(D) Community service.
(E) Vocational educational training.
(F) Job skills training.
(G) GED.
(H) Education directly related to employment.
(vii) The number of participants who complete their GED.
(viii) The number of clients referred to work first who failed
to report.
(ix) A compilation of barriers to employment by incidence and
type experienced by participants.
(x) The number of participants referred back to the department
of human services.
(10) The department shall make available to work first
participants guidelines on eligibility for postemployment training
and how training or education hours are applied toward work
participation requirements. These guidelines will be presented by
the department of human services and the department contracted
staff in accordance with department policy issuances and department
of human services program bulletins. These guidelines presented by
the department and the department of human services shall balance
the ability of participants to obtain training and subsequent long-
term high-wage employment with the need to connect participants
with the workplace. Any and all training or education and community
service, with the exception of high school completion, English as a
second language, fast-track literacy, and GED preparation, must be
occupationally relevant and in demand in the labor market as
determined by the workforce development board. Participants must
make satisfactory progress to continue in a training or education
component.
(11) A work first participant shall participate in work
activities for at least the minimum average number of hours per
week specified in 42 USC 607(c). However, a work first participant
may meet the work participation requirement by participating in
comprehensive basic skills education for the minimum time
determined by the assessment and evaluation provided in subsection
(7). A combination of basic skills training, occupational training,
and community service up to the maximum determined by the
assessment and evaluation provided in subsection (7) may be used to
satisfy the work participation requirements. Training or education
may last up to 12 months, and the calculated hours may include
actual classroom seat time up to 15 hours per week plus up to 1
hour of study time for each hour of classroom seat time. Community
service shall be used only for cases where federal work
participation requirements cannot be met without this activity.
Work first participants may enroll in additional hours of classroom
seat time beyond 15 hours. However, these hours and the related
study time will not count toward the work participation
requirement. Assistance may be provided for up to 2 years or 24
months.
(12) Work first participants may meet the work participation
requirement through enrollment in a short-term vocational program
requiring 20 hours of classroom seat time per week for a period not
to exceed 6 months, or by enrollment in full-time internships,
practicums, or clinicals required by an academic or training
institution for licensure, professional certification, or degree
completion, without an additional work requirement. In cases where
a short-term vocational program lasts less than 6 months, the
participant shall be eligible to enroll in 1 additional short-term
vocational program for a combined period not to exceed a total of
12 months.
(13) Work first participants who lack a high school diploma or
GED and who enroll in high school completion, English as a second
language, fast-track literacy, or classes to obtain a GED may count
up to 10 hours of classroom seat time, combined with a minimum
number of hours of work per week, to meet their work participation
requirement. There shall be no time limit on high school
completion. GED preparation shall be limited to 12 months.
(14) Work first participants who are assessed at a reading or
math skill level of below ninth grade on a standardized assessment
will participate in an appropriate high school completion, English
as a second language, fast-track literacy, or GED completion
program to address these deficiencies as determined to be
appropriate by the assessment and evaluation provided in subsection
(7) and as the Michigan works! agency identifies local resources to
provide the services. The department will work with the department
of human services to develop appropriate programs and incentives to
increase participation in and successful completion of these
programs.
(15) As used in this section, "work first program" means the
jobs, education, and training program.
REPEALER
Sec. 501. Section 405 of 2005 PA 156 is repealed.