HB-4409, As Passed House, August 24, 2011

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4409

     A bill to amend 1939 PA 280, entitled

"The social welfare act,"

by amending sections 57, 57a, 57b, 57c, 57d, 57e, 57g, 57i, 57l,

57p, 57q, 57r, and 57u (MCL 400.57, 400.57a, 400.57b, 400.57c,

400.57d, 400.57e, 400.57g, 400.57i, 400.57l, 400.57p, 400.57q,

400.57r, and 400.57u), section 57 as amended and section 57p as

added by 2006 PA 471, section 57a as amended by 1999 PA 26, section

57b as amended and sections 57q and 57u as added by 2006 PA 468,

section 57c as added by 1995 PA 223, sections 57d, 57g, and 57r as

amended by 2007 PA 9, section 57e as amended by 2006 PA 469,

section 57i as added by 2000 PA 478, and section 57l as added by

1999 PA 17; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

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, and 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 program assistance" means financial

assistance provided to a family under the family independence

program.

     (f) "Family independence program assistance group" means all

those members of a program group who receive family independence

program 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 program assistance.

     (i) "JET program" means the jobs, education and training

program administered by the Michigan economic development

corporation or a successor entity for applicants and recipients of

family independence program assistance or a successor program.

     (j) "Medical review team" means the team composed of a

disability examiner and a physician as a medical consultant who

certifies disability for the purpose of eligibility for assistance

under this act.

     (k) "Negative action period" means the time frame a client is

given notice for a benefit decrease or closure of the family

independence program benefit.

(l) (i) "Minor parent" means an individual under the age of 18

who is not emancipated under 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.

(m) (j) "Payment standard" means the standard upon which

family independence program assistance benefits are based. if the

family independence assistance group has no net income.

(n) (k) "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 program assistance.

(o) (l) "Recipient" means an individual receiving family

independence program assistance.

(p) (m) "Substance abuse" means that term as defined in

section 6107 of the public health code, 1978 PA 368, MCL 333.6107.

(q) (n) "Substance abuse treatment" means outpatient or

inpatient services or participation in alcoholics anonymous or a

similar program.

(r) (o) "Supplemental security income" means the program of

supplemental security income provided under title XVI.

     (p) "Work first" means the program of employment and training

administered by the 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 program 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 program 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 program assistance to

families willing to work toward eventual self-sufficiency.

     (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 this subsection shall be used only for

the purposes of reducing fraud in obtaining public benefits or

assistance under this act.

     (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 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.

     (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.

     (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).

     (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.

     (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).

     (10) Except as necessary to carry out a compact or agreement

under subsection (7) 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.

     (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.

     (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.

     Sec. 57b. (1) Subject to section 57l, an An individual who

meets all of the following requirements is eligible for family

independence program assistance:

     (a) Is a member of a family or a family independence program

assistance group.

     (b) Is a member of a program group whose income and assets are

less than the income and asset limits set by the department.

     (c) In the case of a minor parent, meets the requirements of

subsection (2).

     (d) Is a United States citizen, a permanent resident alien, or

a refugee. If the applicant indicates that he or she is not a

United States citizen, the department shall verify the applicant's

immigration status using the federal systematic alien verification

for entitlements (SAVE) program.

     (e) Is a resident of this state as described in section 32.

     (f) Meets any other eligibility criterion required for the

receipt of federal or state funds or determined by the department

to be necessary for the accomplishment of the goals of the family

independence program.

     (2) A minor parent and the minor parent's child shall not

receive family independence program assistance unless they live in

an adult-supervised household. The family independence program

assistance shall be paid on behalf of the minor parent and child to

an adult in the adult-supervised household. Child care in

conjunction with participation in education, employment readiness,

training, or employment programs, which that have been approved by

the department, shall be provided for the minor parent's child. The

minor parent and child shall live with the minor parent's parent,

stepparent, or legal guardian unless the department determines that

there is good cause for not requiring the minor parent and child to

live with a parent, stepparent, or legal guardian. The department

shall determine the circumstances that constitute good cause, based

on a parent's, stepparent's, or guardian's unavailability or

unwillingness or based on a reasonable belief that there is

physical, sexual, or substance abuse, or domestic violence,

occurring in the household, or that there is other risk to the

physical or emotional health or safety of the minor parent or

child. If the department determines that there is good cause for

not requiring a minor parent to live with a parent, stepparent, or

legal guardian, the minor parent and child shall live in another

adult-supervised household. A local office director may waive the

requirement set forth in this subsection with respect to a minor

parent who is at least 17 years of age, attending secondary school

full-time, and participating in a department service plan or a teen

parenting program, if moving would require the minor parent to

change schools.

     (3) Beginning December 31, 2006, if If a recipient who is

otherwise eligible for family independence program assistance under

this section is currently applying for supplemental security income

and seeking exemption from the work first JET program, the

recipient shall be evaluated and assessed as provided in this

section before a family self-sufficiency plan is developed under

section 57e. Based on a report resulting from the evaluation and

assessment, the caseworker shall make a determination and referral

as follows:

     (a) A determination that the recipient is eligible to

participate in work first the JET program and a referral to the

work first JET program.

     (b) A determination that the recipient is exempt from work

first JET program participation under section 57f and a referral to

a sheltered work environment or subsidized employment.

     (c) A determination that the recipient is exempt from work

first JET program participation under section 57f and a referral to

a legal services organization for supplemental security income

advocacy.

     (4) The department may contract with a legal services

organization to assist recipients with the process for applying for

supplemental security income. The department may also contract with

a nonprofit rehabilitation organization to perform the evaluation

and assessment described under subsection (3). If the department

contracts with either a nonprofit legal or rehabilitation services

organization, uniform contracts shall be used statewide that

include, but are not limited to, uniform rates and performance

measures.

     (5) The auditor general shall conduct an annual audit of the

evaluation and assessment process required under this section and

submit a report of his or her findings to the legislature.

     Sec. 57c. If a minor parent applies for family independence

program assistance, the family independence agency department shall

do all of the following:

     (a) Inform the minor parent of the eligibility requirements of

section 57b(2) and the circumstances under which there is good

cause for permitting the minor parent to live in an adult-

supervised household other than the home of his or her parent or

legal guardian.

     (b) Complete a home visit and or other appropriate

investigation before requiring a minor parent to live with his or

her parent, stepparent, or legal guardian.

     (c) If applicable, assist the minor parent to find an adult-

supervised household in which to live.

     (d) Inform the minor parent of the requirement to attend

school full-time.

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

economic growth Michigan economic development corporation or a

successor entity shall conduct weekly orientation sessions for

family independence program assistance applicants. 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 may be eligible for family independence program

assistance and is not exempt from work first JET program

participation under section 57f, that individual shall participate

in assigned work-related activities. The individual, the

department, and a work first JET program representative shall

develop the family's family self-sufficiency plan in accordance

with section 57e.

     (2) If an applicant who is not exempt from work first JET

program participation under section 57f fails to cooperate with

work first the JET program or other required employment and

training activities, the family is ineligible for family

independence program assistance.

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

a recipient fails to comply with any of the following:

     (a) Work first activities.

     (b) Employment and training activities.

     (c) Child support requirements.

(3) (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 plan.

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

sufficiency plan, the department, a work first JET program

representative, and the recipient shall may revise the family self-

sufficiency plan if necessary and the family independence program

assistance group shall continue to receive family independence

program assistance so long as the recipients meet family

independence program assistance program requirements.

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

eligibility for family independence program assistance not later

than 24 every 12 months after the date the application for family

independence program 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 JET program

caseworker representative and redevelop the family self-sufficiency

plan.

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

program assistance shall execute a family self-sufficiency plan

outlining the responsibilities of members of the family

independence program assistance group, the contractual nature of

family independence program assistance, and the focus on the goal

of attaining self-sufficiency. The family self-sufficiency plan

shall be developed by the department and the adult family members

of the family independence program assistance program group with

the details of work first JET program participation to be included

in the family self-sufficiency plan being developed by the

department, the department of labor and economic growth Michigan

economic development corporation or a successor entity, and the

adult family members of the family independence program assistance

program group. Except as described in section 57b, the department

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 program assistance program group's adult

members are eligible to participate in the work first JET program

or are exempt from work first JET program participation under

section 57f. The family self-sufficiency plan shall identify

compliance goals that are to be met by members of the family

independence program assistance program group and goals and

responsibilities of the members of the family independence program

assistance program group, the department, and the work first JET

program. The 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 the work first JET program 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) and (4), the

obligation of each adult to engage in employment, work first JET

program activities, education or training, community service

activities, or self-improvement activities, as determined

appropriate by the department.

     (d) The obligation to cooperate in the establishment of

paternity and to assign child and spousal support to the department

as required by federal law and to cooperate in 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) If the recipient is determined to be eligible to

participate in the work first JET program, the obligation that the

requirements of the family self-sufficiency plan must, at a

minimum, meet federal guidelines for work participation. Exceptions

may be granted if it is determined that the recipient or a family

member in the recipient's household has a disability that needs

reasonable accommodation as required by section 504 of title V of

the rehabilitation act of 1973, 29 USC 794, subtitle A of title II

of the Americans with disabilities act of 1990, 42 USC 12131 to

12134, or another identified barrier that interferes with the

recipient's ability to participate in required activities.

Reasonable accommodation must be made to adjust the number of

required hours or the types of activities required to take the

identified limitations into account.

     (g) The obligation that the recipient must enroll in a GED

preparation program, a high school completion program, or a

literacy training program, if the department determines the

resources are available and the assessment and plan demonstrate

that these issues present a barrier to the recipient meeting the

requirements in his or her family self-sufficiency plan. This basic

educational skills training shall be combined with other

occupational skills training, whenever possible, to assure that it

can be counted toward federal work participation requirements.

     (h) Notification to the recipient of the 48-month lifetime

cumulative total for collecting family independence program

assistance.

     (i) A prohibition on using family independence program

assistance to purchase lottery tickets, alcohol, or tobacco, for

gambling, or for illegal activities or any other nonessential

items.

     (j) Information regarding sanctions that shall be imposed

under section 57g for noncompliance.

(k) (h) Any other obligation the department determines is

necessary to enable the family to achieve independence.

     (2) The department shall monitor each family's compliance with

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

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) 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 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.

     (9) Subsections (1) to (8) do not apply after March 31, 2007.

Subsections (10) to (15) apply beginning April 1, 2007.

(1) (10) Beginning April 1, 2007, Except as provided in

subsection (5), 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 family is

ineligible to receive family independence program assistance for

not less than 3 calendar months.

     (b) For the second instance of noncompliance, the family is

ineligible to receive family independence program assistance for

not less than 3 6 calendar months.

     (c) For the third instance of noncompliance, the family is

permanently ineligible to receive family independence program

assistance. for 12 calendar months.

(2) (11) For the purposes of subsections (10) to (16) (1) to

(4), "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 voluntarily reduces employment hours or

earnings.

     (d) A recipient refuses a bona fide offer of employment or

additional hours up to 40 hours per week.

(e) (c) A recipient does not participate in work first JET

program activities.

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

self-sufficiency plan.

     (g) A recipient states orally or in writing his or her intent

not to comply with family independence program or JET program

requirements.

     (h) A recipient refuses employment support services if the

refusal prevents participation in an employment or self-sufficiency

related activity.

(3) (12) For any instance of noncompliance, the recipient

shall receive notice of the noncompliance. The recipient shall have

not less than 12 days' notice a 12-day negative action period

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 JET 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.

(4) (13) For all instances of noncompliance resulting in

termination of family independence program assistance for any

period of time described in subsection (10) (1), 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

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).

(5) (16) Family independence program assistance benefits shall

be terminated if a recipient fails, without good cause, to comply

with applicable child support requirements including efforts to

establish paternity, and assign or obtain child support. The family

independence program assistance group is ineligible for family

independence program assistance for not less than 1 calendar month.

After family independence program assistance has been terminated

for not less than 1 calendar month, family independence program

assistance may be restored if the noncompliant recipient complies

with child support requirements including the action to establish

paternity and obtain child support.

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

     (6) The department may promulgate rules in accordance with the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328, identifying other reasons for good cause under this

section. Any rule promulgated under this subsection shall not apply

1 year after the effective date of the amendatory act that added

this subsection.

     Sec. 57i. (1) If a landlord or provider of housing

participates in the family independence agency department rent

vendoring program, the landlord shall certify that the dwelling

unit being provided meets all of the following requirements:

     (a) The dwelling unit does not have a condition that would

facilitate the spread of a communicable disease. As used in this

subdivision, "communicable disease" means that term as defined in

section 5101 of the public health code, 1978 PA 368, MCL 333.5101.

     (b) The dwelling unit is fit for human habitation.

     (c) The dwelling unit is not dangerous to life or health due

to lack of repair of, a defect in, or the construction of a

drainage source or device, plumbing, lighting, ventilation, or a

heating source or device.

     (2) If the family independence agency department is notified

by an enforcing agency that a landlord or provider of housing has a

violation of a housing code that constitutes a hazard to the health

or safety of the occupants, the family independence agency

department shall terminate that landlord's or provider's

participation in the rent vendoring program for the dwelling unit

until the violation is corrected.

     (3) A landlord or provider of housing shall not evict an

occupant from a dwelling unit based solely on termination of the

landlord's or provider's participation in the rent vendoring

program due to action taken by the family independence agency

department under subsection (2) or subsection (4). An occupant who

is evicted in violation of this subsection may bring an action in

any court having jurisdiction to recover treble damages, costs of

the action, and reasonable attorney fees.

     (4) If the department is notified that a landlord or provider

of housing is delinquent on payment of property taxes or if the

title of the property reverts to the state for nonpayment of

property taxes, the department shall terminate that landlord's or

provider of housing's participation in the rent vendoring program

for that property.

     Sec. 57l. (1) Subject to subsection (2), the family

independence agency may require substance abuse testing as a

condition for family independence assistance eligibility under this

act.

     (2) The family independence agency shall implement a pilot

program of substance abuse testing as a condition for family

independence assistance eligibility in at least 3 counties,

including random substance abuse testing. It is the intent of the

legislature that a statewide program of substance abuse testing of

family independence assistance recipients, including random

substance abuse testing, be implemented before April 1, 2003.

However, statewide implementation of the substance abuse testing

program shall not begin until all of the following have been

completed:

     (a) The pilot programs have first been evaluated by the

department and the evaluation has been submitted to the

legislature.

     (b) The evaluation under subdivision (a) includes at least the

factors enumerated in subsection (5)(a) through (d) as well as an

analysis of the pilot program.

     (c) Six months have passed since the evaluation required in

subdivision (a) has been submitted to the legislature.

     (3) An individual described in section 57b shall not be

considered to have tested positive for substance abuse until the

sample has been retested to rule out a false positive by gas

chromatography with mass spectrometry, gas chromatography, high

performance liquid chromatography, or an equally, or more, specific

test using the same sample obtained for the original test.

An individual described in section 57b who tests positive for

substance abuse under this section shall agree to and participate

in substance abuse assessment and comply with a required substance

abuse treatment plan. Failure to comply with a substance abuse

assessment or treatment plan shall be penalized in the same manner

as a work first program violation imposed under section 57d or 57g.

An individual is exempt from substance abuse testing authorized by

this section if the individual is participating in a substance

abuse rehabilitation program that the individual was ordered to

participate in by a circuit court that has established procedures

to expedite the closing of criminal cases involving a crime

established under part 74 of the public health code, 1978 PA 368,

MCL 333.7401 to 333.7461.

     (4) Before implementing substance abuse testing under this

section, the family independence agency shall notify the senate and

house of representatives standing committees having jurisdiction

over this act and the senate and house of representatives

appropriations subcommittees having jurisdiction over the family

independence agency budget of the planned implementation.

     (5) If the family independence agency implements substance

abuse testing as authorized and required by this section, the

family independence agency shall submit an annual report on the

testing program to the senate and house of representatives standing

committees having jurisdiction over this act and the senate and

house of representatives appropriations subcommittees having

jurisdiction over the family independence agency budget. The annual

report shall include at least all of the following information for

the preceding year:

     (a) The number of individuals tested, the substances tested

for, the results of the testing, and the number of referrals for

treatment.

     (b) The costs of the testing and the resulting treatment.

     (c) Sanctions, if any, that have been imposed on recipients as

a result of the testing program.

     (d) The percentage and number of households receiving family

independence assistance that include an individual who has tested

positive for substance abuse under the program and that also

include an individual who has been named as a perpetrator in a case

classified as a central registry case under the child protection

law, 1975 PA 238, MCL 722.621 to 722.638.

     (6) The substance abuse testing authorized and required by

this section does not apply to an individual 65 years old or older.

     (1) The department shall review the feasibility of a substance

abuse testing program within the family independence program. The

department shall report the findings of a review under this section

to the senate and house of representatives committees dealing with

human services matters not later than December 1, 2011.

     (2) The review conducted under and the report presented under

subsection (1) shall include, at least, both of the following:

     (a) The methods of substance abuse testing reviewed.

     (b) The costs associated with the methods identified under

subdivision (a).

Sec. 57p. (1) Beginning April 1, 2007, any month in which any

of the following occur shall not be counted toward the cumulative

total of 48 months in a lifetime for family independence

assistance:

     (a) The recipient has been temporarily exempted from work

first under section 57f(3)(g) and (4).

     (b) The recipient is employed and meeting the requirements of

his or her family self-sufficiency plan.

     (c) The unemployment rate in the county in which the recipient

resides is 25% above the state average for unemployment.

     (d) Compliance with certain family independence program

requirements are waived under section 56i(1)(c).

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

month in which a recipient has been exempted from the JET program

under section 57f(3) or (4)(b) shall not be counted toward the

cumulative total of 48 months in a lifetime for family independence

program assistance. Any month in which a recipient has been

exempted from the JET program under section 57f(4)(e) or (f) may,

in the department's discretion, be excluded from the count toward

the cumulative total of 48 months in a lifetime for family

independence program assistance.

     Sec. 57q. (1) The department shall develop and implement a

plan to incrementally increase the earned income disregard for

family independence program recipients from $200.00 plus 20% to not

more than 67% of earned income by September 30, 2010. Beginning

October 1, 2011, upon the initial application for benefits for

family independence program assistance, the department shall

disregard $200.00 plus 20% of the family independence program

assistance group's earned income for purposes of determining if the

applicant's earned income exceeds the income and asset limits set

by the department.

     (2) Beginning October 1, 2011, the department shall disregard

$200.00 plus 50% of the family independence program assistance

group's earned income for the purpose of determining if the family

independence program assistance group's income exceeds the income

and asset limits set by the department throughout the duration of

receiving family independence program assistance.

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 program assistance shall be paid to that an 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

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.

     Sec. 57u. (1) The department shall provide a report of

exemptions under section 57f by district office and by criteria.

     (2) The department shall provide a report by district office

on the number of sanctions issued, the number of compliance

exceptions granted, and the success rate of recipients given the

compliance exception under section 57g.

     (3) The department shall require district managers to track

performance of caseworkers with regard to sanctions under section

57g.

     (4) The department shall require reporting by county office on

referrals to nonprofit rehabilitation organizations under section

57b the medical review team and the following:

     (a) Referrals pending less than 90 days.

     (b) Referrals pending 90 to 180 days.

     (c) Referrals pending 180 to 365 days.

     (5) The department shall require a quarterly report on cases

in which the recipient has applied for supplemental security income

under section 57b as follows:

     (a) The number of cases assessed.

     (b) The number of cases referred to work first the JET

program.

     (c) The number of cases placed in subsidized employment.

     (d) The number of cases referred to legal services advocacy

programs and the number of cases granted supplemental security

income.

     (6) The department shall report the progress of the plan

required under section 57q and its implementation progress annually

by April 1.

     (7) Except for the reporting requirement provided in

subsection (6), all the reports required under this section shall

be provided on a quarterly basis to all of the following:

     (a) The senate and house standing committees dealing with

appropriations for human services.

     (b) The senate and house fiscal agencies.

     (c) The majority leader of the senate and the speaker of the

house of representatives.

     Enacting section 1. Sections 57h, 57k, 57o, and 57t of the

social welfare act, 1939 PA 280, MCL 400.57h, 400.57k, 400.57o, and

400.57t, are repealed.

     Enacting section 2. This amendatory act takes effect October

1, 2011.

     Enacting section 3. This amendatory act does not take effect

unless House Bill No. 4410 of the 96th Legislature is enacted into

law.