HOUSE BILL REPORT

HB 2393

BYRepresentatives Sayan, Moyer, Silver, Winsley and Rector; by request of Office of Financial Management

Changing provisions relating to the family independence program.

House Committe on Human Services

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (11)

      Signed by Representatives Sayan, Chair; Scott, Vice Chair; Moyer, Ranking Republican; Tate, Assistant Ranking Republican; Anderson, Brekke, Hargrove, Leonard, Raiter, Padden and Winsley.

House Staff:Dave Knutson (786-7146)

Rereferred House Committee on Appropriations

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass.  (16)

      Signed by Representatives Locke, Chair; Appelwick, Belcher, Bowman, Brekke, Dorn, Ebersole, Hine, Inslee, Peery, Rust, Sayan, Spanel, Valle, Wang and Wineberry.

Minority Report:  Do not pass.  (5)

      Signed by Representatives Youngsman, Assistant Ranking Republican Member; Doty, McLean, Nealey and Padden.

House Staff:      John Woolley (786-7154)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 26, 1990

BACKGROUND:

The Family Independence Program executive committee is the administrative entity responsible for overseeing the operation of the Family Independence Program (FIP).  The executive committee has limited tools to control the FIP caseload and expenditures.

SUMMARY:

SUBSTITUTE BILL:  Any modifications cannot violate federal requirements and can be made only after consultation with the Family Independence Program (FIP) advisory committee and the Legislative Budget Committee.  Except in the five FIP treatment sites, the FIP executive committee is authorized to freeze enrollment in the program in order to manage within available resources. Relatives caring for a child who receives aid to families with dependent children payments are not considered FIP enrollees.  The secretary of the Department of Social and Health Services is required to supervise all FIP staff and functions not under the direct authority of the Employment Security Department. If the federal government denies approval for any of the proposed amendments to FIP, the denied amendment is declared null and void. The bill contains an emergency clause.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  A legislative finding is included that FIP is achieving the goals established for the program by the Legislature.  The FIP executive committee must consult with the FIP advisory committee and the Legislative Budget Committee prior to modifying the program.  The ability to remove families from FIP who do not appear likely to leave assistance within one year is removed.  The null and void provision is modified to apply only to specific amendments disapproved by the federal government, not the entire act.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS (SECOND SUBSTITUTE BILL):  A legislative finding is included that there is a need to build on successful training programs.  The Office of the Governor is directed to work with the Washington State Job Training Coordinating Council to develop closer ties between the Job Training Partnership Act (JTPA) and FIP and ensure that an increased amount of federal funds goes to FIP related employment programs.

The Community Economic Revitalization Board must ensure that not less than five percent of each year's loan and grant capacity is designated to projects expected to create employment for FIP enrollees.  Families in which children are residing with caretakers other than the children's parents are not eligible for FIP enrollment if the children are the only ones eligible for FIP.  The secretary of the Department of Social and Health Services (DSHS) will supervise all staff not deemed by the executive committee of FIP to be under the direct supervision of Employment Security.  Treatment of gifts will be consistent with aid to families with dependent children (AFDC) law except that the FIP Executive Committee may provide for special treatment of scholarships and other gifts intended to help enrollees obtain training or employment.  In the event of a need for a freeze on additional enrollment, two-parent family enrollment will be frozen first.

The Executive Committee will direct DSHS and Employment Security (the departments) to implement incentive programs, based on savings to FIP, for state employees to place enrollees in long term employment. The executive committee will direct the departments to identify enrollees who are employed full-time but still not above the FIP 135 percent benchmark earnings to assist them in raising their income above the 135 percent benchmark.  The executive committee will direct the departments to develop rules governing the employability program, some of which are stated.  Those rules will include the prohibition of four year programs unless they meet specific criteria.  The executive committee will direct the departments to develop procedures for enrollees who have registered for employment or training but are not active and will request the Efficiency Commission to assist in the development of those procedures.

DSHS is directed to contract with nongovernmental organizations for performance based employment services. $150,000 is appropriated to DSHS to fund a special litigation unit.

Appropriation:    $150,000 to the Department of Social and Health Services.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Human Services)  Robert Lolcama, Assistant Secretary, Economic and Medical Services Administration, Department of Social and Health Services; Susan Emley; Marianne Leibert, Washington Alliance Concerned with School Aged Parents; Earl Davenport, Washington Association of Private Industry Councils; and Cathy Jamison.

(Appropriations)  Mark Brown, Washington Federation of State Employees, in part for, in part against.

House Committee - Testified Against:      (Human Services)  Deborah McSwain, Diane Young; Pat Thibadeau, Washington Women United; Elizabeth Schott, Evergreen Legal Services; Tony Lee, Washington Association of Churches; Krista Cosalter; and Susan Johnson, FIP advisory committee.

(Appropriations)  Barbara Flaherty, Executive Director, Family Independence Program, Department of Social and Health Services; and Robert Lalcoma, Department of Social and Health Services (in part for, part against).

House Committee - Testimony For:    (Human Services)  Caseloads in the FIP program are growing faster than anticipated.  The executive branch needs additional authority to control caseloads and expenditures.  Many witnesses support FIP but oppose additional management controls proposed by the Office of Financial Management.

(Appropriations)  The program is supported but parts of the bill should be changed.  The inclusion of performance based contracting to nongovernmental agencies sends the wrong message to hard working staff and should be eliminated.  In addition, there is no reason to believe that the private sector would do a better job.

House Committee - Testimony Against:      (Human Services)  The Family Independence Program is successfully moving people from dependence to independence.  The program should not be altered or modified at this time.  If amendments are adopted limiting the restrictions on FIP, many witnesses would support the legislation.

(Appropriations)  The bill and the program are supported, but if there is to be contracting for performance based employment services, it should be done through Employment Security rather than DSHS as Employment Security handles the employment side of FIP.