HOUSE BILL REPORT

                  HB 1941

             As Reported By House Committee on:

                       Human Services

Title:  An act relating to the receipt of income from internship employment related to job training programs.

Brief Description:  Directing the Department of Social and Health Services to seek a federal waiver that would allow certain public assistance recipients to retain internship income.

Sponsor(s):  Representatives Bowman, Leonard, Moyer, Winsley, Paris and Mitchell.

Brief History:

  Reported by House Committee on:

Human Services, February 27, 1991, DP.

HOUSE COMMITTEE ON

HUMAN SERVICES

Majority Report: Do pass.  Signed by 11 members:  Representatives Leonard, Chair; Riley, Vice Chair; Winsley, Ranking Minority Member; Tate, Assistant Ranking Minority Member; Anderson; Beck; Brekke; Hargrove; Hochstatter; R. King; and H. Myers.

Staff:  David Knutson (786-7146).

Background:  Public assistance recipients who work, have their earnings deducted from their grant amount.  This applies to paid internships as well.  This can serve as a disincentive for public assistance recipients who want to become economically independent.  This earnings deduction applies to recipients of aid to families with dependent children, the Family Independence Program, and the Jobs Opportunities and Basic Skills Program.

Summary of Bill:  The Department of Social and Health Services will seek waivers from the federal government, under the Family Independence Program and the Jobs Opportunities and Basic Skills Program, allowing recipients to keep income earned from internship employment related to a job training program.  If the federal government approves the waivers submitted by the Department of Social and Health Services, the recipient will be allowed to keep income earned through an internship program.

Fiscal Note:  Requested February 19, 1991.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Recipients of public assistance who participate in paid internships have their earnings deducted from their grant.  This creates a disincentive to continue working and leave public assistance.

Testimony Against:  None.

Witnesses:  Bernice Morehead, Department of Social and Health Services (pro); and Representative Bowman, sponsor.