GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1692*

Short Title:  Welfare Law Improvement/Funds.	(Public)

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Sponsors: Representatives Adams; Alexander, Boyd-McIntyre, Earle, Easterling, Goodwin, Hensley, H. Hunter, Hurley, Insko, Jarrell, Jeffus, Kinney, Luebke, McAllister, McCrary, Oldham, Wainwright, Womble, and Wright.

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Referred to:  Appropriations.

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June 1, 1998

A BILL TO BE ENTITLED
AN ACT TO IMPROVE THE WELFARE WORK FIRST PROGRAM, TO MAKE IT MORE EQUITABLE AND UNIFORMLY APPLIED, AND TO APPROPRIATE FUNDS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 108A-27.9(c) reads as rewritten:
"(c)	The State Plan shall include the following generally applicable  provisions:
(1)	Provisions to ensure that the following are uniformly developed and implemented across the State:
a.	Eligibility criteria, which shall include the Medicaid eligibility standard as part of the overall uniform eligibility standards and the Standard of Need;
b.	Benefits, which shall include:
1.	Work First diversion assistance with no repayment requirements;
2.	Participation in the transportation plan developed by the Department pursuant to G.S. 108A-27.2(1)b.2. for families to acquire automobiles at low or no cost;
3.	Exemption of second vehicle from income eligibility when there are two working people in the family;
4.	Continuation of scaled assistance for six months after the three months of full assistance when a family obtains employment while on Work First, which scaled assistance shall be based on a formula that shall consider family expenses and whether the family's employment provides wages that enable the family to be self-sufficient; and
5.	Allowance for two-parent families to receive TANF assistance prior to meeting work requirements, in order to encourage families to stay together and to overcome barriers to self-sufficiency and gainful employment;
c.	Notification of all applicants for all assistance about the problems of family violence and the protections for victims of abuse;
d.	Recipient grievance and appeals procedures, to ensure that recipients that are sanctioned are provided a clear explanation of the sanction, that all recipients, including those under sanction or termination for rules infractions, are fully informed of their right to legal counsel and any other advocates they choose, and that all appeals are uniform across the State; and
e.	Proactive sanction/termination prevention programs, including motivational training, mentoring, job search, and job readiness assistance, sensitivity training for caseworkers and supervisors on service delivery, and casework review of all recipients sanctioned;
	(1a)	Provisions to ensure that no Work First Program recipients, required to participate in work activities, shall be employed or assigned when:
a.	Any regular employee is on layoff from the same or substantially equivalent job;
b.	An employer terminates any regular employee or otherwise causes an involuntary reduction in the employer's workforce in order to hire Work First recipients; or
c.	An employer otherwise causes the displacement of any currently employed worker or positions, including partial displacements such as reductions in hours of nonovertime work, wages, or employment benefits, in order to hire Work First recipients;
(2)	Provisions to ensure the establishment and maintenance of grievance procedures to resolve complaints by regular employees who allege that the employment or assignment of a Work First Program recipient is in violation of subdivision (1) of this subsection;
(3)	Provisions to ensure that Work First Program participants, required to participate in work activities, shall be subject to and have the Work First Program employees in similarly situated work activities, including, but not limited to, wage and hour laws, health and safety standards, and nondiscrimination laws, provided that nothing in this subdivision shall be construed to prohibit Work First Program participants from receiving additional State or county services designed to assist Work First Program participants achieve job stability and self-sufficiency;
(4)	A description of eligible federal and State work activities;
(5)	Requirements for assignment of child support income and compliance with child support activities;
(6)	Incentives for high-performing counties, contingency plans for counties unable to meet financial commitments during the term of the State Plan, and sanctions against counties failing to meet performance expectations, including allocation of any federal penalties that may be assessed against the State as a result of a county's failure to perform; and
(7)	Anything else required by federal or State law, rule, or regulation to be included in the State Plan."
Section 2.  G.S. 108A-24(14) reads as rewritten:
"(14)	'Work First Diversion Assistance' is a short-term cash payment that is intended to substantially reduce the likelihood of a family requiring Work First Family and that shall not be required to be repaid unless fraudulently obtained."
Section 3.  G.S. 108A-27.1 reads as rewritten:
"§ 108A-27.1.  Time review of assistance.
	Under the Work First Program, any cash assistance provided to a person or family in the employment program shall be reviewed after being received for a cumulative total of 24 months.  If the review determines that the recipient or the family  has been in compliance with the Program but remains unable to gain self-sufficiency, the assistance shall continue.  Subsequent reviews shall take place every three months.  Assistance shall continue until self-sufficiency is gained or until compliance is no longer maintained, up to the time limit allowed under federal law.  If the review determines that the recipient or the family has not been in compliance with the Program or that the recipient and the family  have gained self-sufficiency, the assistance shall be terminated.  If the recipient or the family has been terminated, the recipient or the family may reapply for cash assistance, but not until after 36 months from the last month the person or the family received cash assistance. This subsection shall not apply to child-only cases.
	."
Section 4.  G.S. 108A-27.2 reads as rewritten:
"§ 108A-27.2.  General duties of the Department.
The Department shall have the following general duties with respect to the Work First Program:
(1)	Ensure that the following specifications of the State plan as prescribed in G.S. 108A.27.9(c) are developed and implemented uniformly across the State:
a.	Eligibility criteria, which shall include the Medicaid eligibility standard as part of the overall uniform eligibility standards and the Standard of Need;
b.	Benefits, which shall include:
1.	Work First diversion assistance with no repayment requirements;
2.	A transportation plan for families to acquire automobiles at low or no cost;
3.	Exemption of second vehicle from income eligibility when there are two working people in the family;
4.	Continuation of scaled assistance for six months after the three months of full assistance when a family obtains employment while on Work First, which scaled assistance shall be based on a formula that shall consider family expenses and whether the family's employment provides wages that enable the family to be self-sufficient; and
5.	Allowance for two-parent families to receive TANF assistance prior to meeting work requirements, in order to encourage families to stay together and to overcome barriers to self-sufficiency and gainful employment;
c.	Notification of all applicants for all assistance about the problems of family violence and the protections for victims of abuse;
d.	Recipient grievance and appeals procedures, to ensure that recipients that are sanctioned are provided a clear explanation of the sanction, that all recipients, including those under sanction or termination for rules infractions, are fully informed of their right to legal counsel and any other advocates they choose, and that all appeals are uniform across the State; and
e.	Proactive sanction/termination prevention programs, including motivational training, mentoring, job search, and job readiness assistance, sensitivity training for caseworkers and supervisors on service delivery, and administrative review of all recipients sanctioned;
	(1a)	Provide technical assistance to counties developing and implementing their County Plans, including providing information concerning applicable federal law and regulations and changes to federal law and regulations that affect the permissible use of federal funds and scope of the Work First Program in a county;
(2)	Describe authorized federal and State work activities;
(3)	Define requirements for assignment of child support income and compliance with child support activities;
(4)	Establish a schedule for counties to submit their County Plans to ensure that all Standard County Plans are adopted by the Standard Program Counties by January 15 of each even-numbered year and all Electing County Plans are adopted by Electing Counties by February 1 of each even-numbered year and review and then recommend a State Plan to the General Assembly;
(5)	Ensure that the County Plans comply with federal and State laws, rules, and regulations, are consistent with the overall purposes and goals of the Work First Program, and maximize federal receipts for the Work First Program;
(6)	Prepare the State Plan in accordance with G.S. 108A-27.9 and federal laws and regulations and submit it to the Budget Director for approval;
(7)	Submit the State Plan, as approved by the Budget Director, to the General Assembly for approval;
(8)	Report monthly to the Joint Legislative Public Assistance Commission on the monthly progress reports submitted by the counties to the Department;
(9)	Develop and implement a system to monitor and evaluate the impact of the Work First Program on children and families, including the impact of the Work First Program on the economic security and health of children and families, child abuse and neglect, caseloads for child protective services and foster care, school attendance, and academic and behavioral performance. State and county agencies shall cooperate in providing information needed to conduct these evaluations, sharing data and information except where prohibited specifically by federal law or regulation;
(10)	Monitor the performance of counties relative to their County Plans and the overall goals of the Work First Program and report every six months to the Director of the Budget and the Joint Legislative Public Assistance Commission and annually to the General Assembly on the counties' attainment of the outcomes and goals;
(11)	Provide quarterly progress reports to the county departments of social services, the county boards of commissioners, and the Joint Legislative Public Assistance Commission on the performance of counties in achieving Work First Program expectations;
(12)	Report to the Joint Legislative Public Assistance Commission and the House and Senate Appropriations Subcommittees on Human Resources the counties which have requested Electing status, provide copies of the proposed Electing County Plans to the Joint Legislative Public Assistance Commission and the House and Senate Appropriations Subcommittees on Human Resources, and make recommendations to the Joint Legislative Public Assistance Commission, the chairs of the House and Senate Subcommittees on Human Resources, and the General Assembly on which of the proposed Electing County Plans ensure compliance with federal and State laws, rules, and regulations and are consistent with the overall purposes and goals for the Work First Program; and
(13)	Make recommendations to the General Assembly for approval of counties to become Electing Counties which represent, in aggregate, no more than fifteen and one-half percent (15.5%) of the total Work First caseload at October 1 of each year and, for each county submitting a plan, the reasons individual counties were or were not recommended."
Section 5. G.S. 108A-27.3(a) reads as rewritten:
"§ 108A-27.3.  Electing Counties – Duties of county boards of commissioners.
(a)	The duties of the county boards of commissioners in Electing Counties under the Work First Program are as follows:
(1)	Establish county outcome and performance goals based on county economic, educational, and employment factors and adopt criteria for determining the progress of the county in moving persons and families to self-sufficiency;
(2)	 Determine eligibility of recipients and families for the Work First Program pursuant to the eligibility criteria established by the Department;
(3) 	Prescribe the method of providing benefits for recipients; 
(4)	Determine and list persons and families eligible for the Work First Program;
(5)	If made a part of the county's Work First Program, develop and enter into Mutual Responsibility Agreements with Work First Program recipients and ensure that the services and resources that are needed to assist participants to comply with the obligations under their Mutual Responsibility Agreements are available;
(6)	Ensure that participants engage in the minimum hours of work activities required by Title IV-A;
(7)	Provide community service work for any recipient who cannot find employment;
(8)	Make payments of Work First Diversion Assistance and Work First Family Assistance to recipients having MRAs;
(9)	Monitor compliance with Mutual Responsibility Agreements and enforce the agreement provisions;
(10)	Monitor and evaluate the impact of the Work First Program on economic security and health of children and families, child abuse and neglect, caseloads for child protective services and foster care, school attendance, and academic and behavioral performance, and report the findings to the Department quarterly;
(11)	Ensure compliance with applicable State and federal laws, rules, and regulations for the Work First Program;
(12)	Develop, adopt, and submit to the Department a biennial County Plan;
(13)	Provide monthly progress reports to the Department in a format to be determined by the Department;
(14)	 Provide the procedures at the county level that are necessary to provide the local base for the grievance and appeals procedures developed by the Department for all counties in the State."
Section 6.  G.S. 108A-27.4(e) reads as rewritten:
"(e)	Each county shall include in its County Plan the following:
(1)	The number of MRAs entered into by the county;
(2)	A description of the county's plans for serving families who need child care, transportation, substance abuse services, and employment support based on the needs of the community and the availability of services and funding;
(3)	A list of the community service programs equivalent to full-time employment that are being offered to Work First Program recipients who are unable to find full-time employment;
	A description of any policies adopted by the county relating to the Work First Program, including those implementing the requirements of G.S. 108A-27.9(c), and of the county's maintenance of effort.  If an Electing County proposes to reduce maintenance of effort, the county shall describe the reasons for these changes and how the county intends to utilize the maintenance of effort savings;
(5)	A description of how the county plans to utilize public and private resources to assist in moving persons and families to self-sufficiency; and
(6)	Any request to the Department for waivers to rules or any proposals for statutory changes to remove any impediments to implementation of the County's Plan."
Section 7.  G.S. 108A-27.6(a) reads as rewritten:
"(a)	Except as otherwise provided in this Article, the Standard Work First Program shall be administered by the county departments of social services. The county departments of social services in Standard Program Counties shall:
(1)	In consultation with the Department and the county board of commissioners, establish outcome and performance goals for each Standard Program County, based on economic factors and conditions in that county, aimed at reducing child poverty by means of goals that measure the increased numbers of persons employed, the increased numbers of hours worked by and wages earned by recipients, and other measures of child well-being;
	Determine eligibility of persons and families for the Work First pursuant to the eligibility criteria developed by the Department;
(3)	Enter into Mutual Responsibility Agreements with participants if required under the State Plan and ensure that the services and resources that are needed to assist participants to comply with their obligations under their Mutual Responsibility Agreements are available;
(4)	Comply with State and federal law relating to Work First and Title IV-A;
(5)	Develop the County Plans for submission by the counties to the Department;
(6)	Ensure that participants engage in the minimum hours of work activities required by the State Plan and Title IV-A;
(7)	Ensure that the components of the Work First Program are funded solely from authorized sources and that federal TANF funds are used only for purposes and programs authorized by federal and State law;
(8)	Monitor and evaluate the impact of the Work First Program on children and families, including the impact of the Program on the economic security and health of children and families, child abuse and neglect, caseloads for child protective services and foster care, school attendance, and academic and behavioral performance, and report the findings to the Department quarterly; and
(9)	Provide monthly progress reports to the Department, in a format to be determined by the Department."
Section 8.  G.S. 108A-27.9(e) reads as rewritten:
"(e)	The section of State Plan describing the Standard Work First Program shall include:
					(6)	Provisions for sanctions for recipient failure to comply with program requirements, as qualified by G.S. 108A-27.9(c)(1)d. and e.;
	(8)	Allocations of federal, State, and county funds for the Standard Work First Program, including county block grants to the counties for Work First Services;
(9)	Levels of State and county funding for the Standard Work First Program;
(10)	Allocation for funding for administration at the State and local level not to exceed the federally established limitations on use of federal TANF funds for program administration; and
(11)	A description of the Department's consultation with local governments and private sector organizations and a summary of any comments received during the 45-day public comment period."
Section 9.  This act amends "North Carolina's Temporary Assistance for Needy Families State Plan FY 1998-2000", dated May 15, 1998, regardless of whether the Plan is enacted into law by this General Assembly before or after this act is enacted.
Section 10.  There is appropriated from the General Fund to the Department of Health and Human Services the sum of four hundred thousand dollars ($400,000) for the 1998-99 fiscal year to implement this act.
Section 11.  This act becomes effective July 1, 1998.