FINAL BILL REPORT

2SHB 448

PARTIAL VETO

                                  C 434 L 87

BYHouse Committee on Ways & Means (originally sponsored by Representatives Brekke, Winsley, Braddock, Dellwo, H. Sommers, P. King, Wang, Holm, B. Williams, Haugen, Fuhrman, Heavey, L. Smith, Miller and Barnes; by request of Governor Gardner)

Establishing the family independence program.

House Committe on Human Services

Rereferred House Committee on Ways & Means

Senate Committee on Human Services & Corrections and Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

The Aid to Families with Dependent Children Program (AFDC) was created by the Social Security Act of 1935 as a response to the poverty created by the Depression, and as an ongoing source of support for those who were unable to support themselves.

By the early 1980s the federal government, while not successful in passing national legislation requiring work in exchange for benefits, had passed legislation allowing the states to develop their own work and training programs.

Interest remains high among most of the states and at the national level to develop programs that successfully encourage AFDC recipients to seek self-sufficiency and economic independence.

SUMMARY:

The Family Independence Program is established as a five-year demonstration project within the framework of the Social Security Act as an alternative to the current Aid to Families with Dependent Children (AFDC), Food Stamps and Medicaid programs.  It is intended to assist applicants and recipients to achieve economic independence by providing financial incentives, child care, medical benefits, education, training and job placement activities.  A basic level of financial and medical assistance is provided for those persons unable to participate in education, training or work programs.

An executive committee is established to administer the program. The executive committee consists of the secretary of the Department of Social and Health Services, the commissioner of the Employment Security Department, a program official from each of those agencies responsible for the program, a representative of the Office of Financial Management and two nonvoting former recipients of public assistance.  A 10 to 20 member advisory committee to the executive committee is established for consultation purposes.  A system of family opportunity councils is established in each of the six Department of Social and Health Services regions to select at least six of the members of the advisory committee as well as to provide support to enrollees achieving self-sufficiency.  The council will be made up of current and former recipients, and non-profit organizations involved in working with public assistance recipients.

The Family Independence Program will include training and education opportunities ranging from basic remedial education through higher education, job creation and development, job placement in both subsidized and unsubsidized positions, job skills training, self-esteem and motivation building activities, and parenting education.  Incentive benefits will be paid to those enrolled in education, training and work activities. Benefits will be paid based upon a benchmark standard established by the legislature which includes the AFDC cash grant and the cash equivalent of food stamps as determined by family size.  One hundred and five percent of the benchmark will be paid to those in education and training, including teen parents remaining in school.  One hundred and fifteen percent of the benchmark will be paid to those employed part- time and 135 percent of the benchmark will be paid to those employed full time.  Those unable to participate will receive 100 percent of the benchmark.

Due process rights are guaranteed to enrollees.  Fair labor practices and guarantees are included to ameliorate any potential displacement of current employees or those already in the labor market.  Child care and medical benefits will continue to be provided for one year after an enrollee exceeds the maximum income level.

The Family Independence Program will be voluntary for the first two years of the program.  After that time, it may be mandatory in regions where more than 50 percent of the job-ready participants have been placed within three months.  Certain persons are exempt from participation in the program.  Those exempt include a parent with a child under three years of age unless the family has been on assistance for more than three years, then the age of the child decreases to six months.  All first-time recipients are exempt from participating for six months.

The program may not be implemented in counties where the unemployment rate is more than twice the state average.  In one region where the program is implemented, the Department of Social and Health Services must conduct a pilot project on universal mandatory monthly reporting.

The executive committee is required to provide implementation plans to the legislature by January 1, 1988.  The Legislative Budget Committee will administer the evaluation of the program. As a demonstration project, the Family Independence Program requires waivers from the federal government.  Those proposed federal/state agreements and implementation plans must be specifically approved by the legislature.  The program cannot be implemented prior to February 28, 1988.

VOTES ON FINAL PASSAGE:

      House 92   5

      Senate    49     0(Senate amended)

      House 92   3(House concurred)

EFFECTIVE:July 26, 1987

Partial Veto Summary:  Provisions dealing with (1) the definitions of "Family Opportunity Councils" and "full time" employment; (2) the mandatory monthly reporting pilot project; and (3) the requirement that the Family Independence Program cannot be implemented in counties with more than twice the state's unemployment rate are vetoed.  (See VETO MESSAGE)