January 25, 2005, Introduced by Senators JELINEK, ALLEN and GOSCHKA 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:
Sec. 6. (1) The family independence agency may promulgate all
rules necessary or desirable for the administration of programs
under this act. Rules shall be promulgated under the administrative
procedures
act of 1969, Act No. 306 of the Public Acts of 1969,
being
sections 24.201 to 24.328 of the Michigan Compiled Laws.
Beginning
2 years after the effective date of subsection (2), if
the
Michigan supreme court rules that sections 45 and 46 of Act
No.
306
of the Public Acts of 1969, being sections 24.245 and 24.246 of
the
Michigan Compiled Laws, are unconstitutional and a statute
requiring
legislative review of administrative rules is not enacted
within
90 days after the Michigan supreme court ruling, this
subsection
does not apply 1969 PA 306, MCL 24.201 to 24.328.
(2) The family independence agency may develop regulations to
implement the goals and principles of assistance programs created
under this act, including all standards and policies related to
applicants and recipients that are necessary or desirable to
administer
the programs. These regulations are effective and
binding
on all those affected by the assistance programs. Except
for
policies described in subsections (3) and (4), regulations
described
in this subsection, setting standards and policies
necessary
or desirable to administer the programs, are exempt until
the
expiration of 12 months after the effective date of this
subsection
from the rule promulgation requirements of the
administrative
procedures act of 1969, Act No.~306 of the Public
Acts
of 1969, being sections 24.201 to 24.328 of the Michigan
Compiled
Laws. Upon the expiration of 12 months after the effective
date
of this subsection, regulations described in this subsection
are
not effective and binding unless processed as emergency rules
under
section 48 of Act No. 306 of the Public Acts of 1969, being
section
24.248 of the Michigan Compiled Laws, or promulgated in
accordance
with Act No. 306 of the Public Acts of 1969.
(3) The family independence agency may develop policies to
establish income and asset limits, types of income and assets to be
considered for eligibility, and payment standards for assistance
programs administered under this act. Policies developed under this
subsection are effective and binding on all those affected by the
assistance programs. For an adult who is unable to live without
assistance due to physical or mental disability and who does not
live in a health facility or agency as defined in section 20106 or
rules promulgated under section 20115 of the public health code,
1978 PA 368, MCL 333.20106 and 333.20115, a policy establishing
income and asset limits developed under this subsection shall
consider only that adult's income and assets in determining
eligibility. Policies described in this subsection are exempt from
the
rule promulgation requirements of Act No.~306 of the Public
Acts
of 1969 the administrative procedures act of 1969,
1969 PA
306, MCL 24.201 to 24.328. Not less than 30 days before policies
developed under this subsection are implemented, they shall be
submitted to the senate and house standing committees and
appropriation subcommittees with oversight of human services.
(4) The family independence agency may develop policies to
implement requirements that are mandated by federal statute or
regulations as a condition of receipt of federal funds. Policies
developed under this subsection are effective and binding on all
those affected by the programs. Policies described in this
subsection
are exempt from the rule promulgation requirements of
Act
No.~306 of the Public Acts of 1969 the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(5) All rules, regulations, and policies established by the
family independence agency shall be in writing, shall be provided
to the legislature, and shall be made available for inspection by
any member of the public at all offices of the family independence
agency during regular business hours.
(6)
Until the expiration of 12 months after the effective
date
of this subsection, a bipartisan task force of legislators
appointed
in the same manner as members are appointed to standing
committees
of the legislature shall meet regularly with the family
independence
agency to review proposed policies and regulations for
the
family independence program. Meetings of the bipartisan task
force
are subject to the open meetings act, Act No. 267 of the
Public
Acts of 1976, being sections 15.261 to 15.275 of the
Michigan Compiled Laws.
(6) (7)
Subsection (2) does not apply to
standards and
policies
related to the providers a
provider of services which
have
that has a written
contractual relationship or are that is
an enrolled medicaid provider with the family independence agency.
Sec. 41. If at any time after approval of a grant of
assistance
the recipient , or,
except as provided in this
section, the spouse of the recipient , becomes
possessed of any
property
or income of which the county department of social
welfare
family independence agency
has no knowledge, it shall be
the
duty of the recipient to notify said that county department,
of
social welfare which shall report
and make recommendations to
the state department, which in turn may cancel, suspend, or alter
the certificate of allowance. This section does not apply to the
spouse of an adult who is unable to live without assistance due to
physical or mental disability and who does not live in a health
facility or agency as defined in section 20106 or rules promulgated
under section 20115 of the public health code, 1978 PA 368, MCL
333.20106 and 333.20115.
Sec.
57. (1) As used in this section and sections 57a to 57g
57l:
(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 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 a 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.
(iv) An adult who is unable to live without assistance due to
physical or mental disability and who does not live in a health
facility or agency as defined in section 20106 or rules promulgated
under section 20115 of the public health code, 1978 PA 368, MCL
333.20106 and 333.20115.
(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) "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.
(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) "Work first" means the program of employment and training
administered
by the Michigan jobs commission department of career
development 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 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 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 Subject to
subsection (4), the family independence
agency 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) In determining whether an adult who is unable to live
without assistance due to physical or mental disability and who
does not live in a health facility or agency as defined in section
20106 or rules promulgated under section 20115 of the public health
code, 1978 PA 368, MCL 333.20106 and 333.20115, meets the income
and asset levels requirement established under subsection (3), the
family independence agency shall consider only that adult's income
and assets.
(5) (4)
Not later than October 1, 2001,
the family
independence agency 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 with an automated finger image or images as a
condition
of eligibility. Finger imaging obtained pursuant to in
accordance with this subsection shall be used only for the purposes
of reducing fraud in obtaining public benefits or assistance under
this act.
(6) (5)
The family independence agency
shall establish the
automated finger image system that, at a minimum, includes the
following:
(a) Confidentiality of the automated finger image records
taken
pursuant to in
accordance with 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.
(7) (6)
The family independence agency
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 within the previous 12 months.
(8) (7)
The family independence agency 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) (5).
(9) (8)
The family independence agency
shall conduct semi-
annual 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.
(10) (9)
Beginning December 31 of the first
year the
automated finger imaging system has been fully implemented, the
family independence agency shall compile and report annually to the
senate and house committees having jurisdiction over family
independence agency 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) (9).
(11) (10)
Except as necessary to carry out a
compact or
agreement
under subsection (7) (8) or unless otherwise required
by law, the family independence agency 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.
(12) (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 this subsection is a
misdemeanor punishable by imprisonment for not more than 93 days or
a fine of not more than $500.00, or both.
(13) (12)
At the time an individual applies
for cash
assistance, food stamps, or both, the family independence agency
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.