HCS HB 1337 -- WORK FIRST WELFARE REFORM ACT

SPONSOR:  Gunn (Reinhart)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Social
Services, Medicaid and the Elderly by a vote of 11 to 0.

This substitute establishes the "Work First Welfare Reform Act"
to assist needy families with children in becoming self--
sufficient, and to implement the requirements of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(PRWORA), the federal welfare reform bill.

The Department of Social Services is required to implement this
act effective July 1, 1998, with appropriated federal and state
funds.  State funds are to be appropriated at a level of at
least 100% of the fiscal year 1994 expenditures for the major
federal public assistance programs.  The department is required
to submit an annual report to the Speaker of the House and the
President Pro Tem of the Senate, detailing the level and scope
of state fund expenditures for the act.  This report is to also
include information on the number of legal immigrants in the
state who have received assistance during the past year and in
the preceding 4 years, and a statement that federal law allows
the General Assembly to eliminate public assistance benefits for
legal immigrants.

Eligibility requirements for receiving cash and non-cash
assistance under this act are outlined and include:

(1)  Participation in an approved work activity within 24 months
of receiving assistance, or earlier if the department determines
that recipients are work-ready.  Applicants for assistance are
required to apply for work, apply for or engage in a work
activity, or immediately go to work, beginning on the day that
application for benefits is made.  Individuals exempted from
work requirements due to age, disability, or for good cause can
qualify for a state-only funded program;

(2)  Cooperation in establishing paternity and enforcing child
support orders, and assignment of child support obligations;

(3)  Income and resource limits no more restrictive than those
in place on August 22, 1996, for the Aid to Families with
Dependent Children (AFDC) program, and which are to be
determined by the department and applied uniformly throughout
the state;

(4)  U.S. citizenship and Missouri residency; and

(5)  Evidence that a family is deprived of parental support.

There is a 5 year limit on the receipt of benefits, beginning
July 1, 1997.

Unmarried individuals under age 18, who have a minor child and
are otherwise eligible for benefits, must reside with a parent,
adult relative, or in an approved adult-supervised setting, in
order to receive benefits under this act, with exceptions
provided for instances of abuse or exploitation.  Such
individuals must also be participating in approved educational
programs if they have not completed high school or its
equivalent.  Cash benefit levels are reduced by up to 50% if an
applicant or recipient is truant, pursuant to state law.

The department is to develop an application form, with required
information outlined in the bill, for use in determining
eligibility.  Applicants must provide a valid social security
number, and state whether any member of the household has been
convicted of certain felony drug offenses, and whether any
member of the household has received or is currently receiving
any form of public assistance from any state.  The Division of
Motor Vehicle and Drivers' Licensing is to make records
available to enable the department to verify whether an
applicant or recipient owns a vehicle or has a valid driver's
license.

The amount of cash and levels of non-cash assistance provided to
families is to be determined by the department through an
individualized assessment, known as the self-sufficiency pact.
All assistance provided must comply with the mandatory
provisions of the PRWORA and be aimed at promoting work--
readiness and self-sufficiency.

Job displacement of employees by a recipient is prohibited; a
grievance procedure within the Department of Labor and
Industrial Relations for resolving complaints alleging job
displacement is provided.

Individuals ineligible for benefits include:

(1)  Those convicted after August 22, 1996, of a felony drug
offense are ineligible for between 3 and 10 years from the date
of conviction, depending on the type of offense, and whether the
individual was receiving benefits when convicted;

(2)  Those convicted of fraudulently representing residency in
order to obtain benefits from 2 or more states are ineligible
for 10 years from the date of conviction;

(3)  Individuals who violate a condition of probation or parole;
and

(4)  Those who flee to avoid prosecution, custody or confinement.

The department is required to submit a state plan outlining the
provisions of the Work First Welfare Reform Act; the work
requirements for parents and caretakers; the provisions for
safeguarding confidentiality and recipient privacy; the actions
undertaken to reduce the state's out-of-wedlock pregnancy rate;
the provision of a program to law enforcement and related
agencies to foster the inclusion of men in teenage pregnancy
prevention programs; the state's intent, in implementing the
act, to treat families moving into Missouri differently from
those with residency in Missouri; and a description of any
allowable options exercised by the state in implementing the
PRWORA.  A summary of the written plan must be made available to
the public.

This bill establishes the Joint Legislative Social Services
Block Grant Oversight Committee, comprised of 7 members of the
Senate and 7 House members.  The Joint Committee is responsible
for formulating state policy concerning the provision of
assistance to needy families, an annual review of the
established state waivers with recommendations on their
continuance or discontinuance, an evaluation of the appropriate
funding levels for the Work First Welfare Reform Act, and
recommendations on which categories of needy individuals to
exempt from the work participation requirements.  The Joint
Committee is to submit its recommendations to the President Pro
Tem of the Senate and the Speaker of the House.

FISCAL NOTE:  Partial Estimated Net Cost to General Revenue Fund
of $66,958 in FY 1999, $64,188 in FY 2000, and $72,921 in FY
2001.  Totals do not include unknown costs from the Division of
Employment Security to perform hearings.

PROPONENTS:  Supporters say that the substitute codifies what is
required for the state to be in compliance with federal law.

Testifying for the bill were Representatives Reinhart and
Kasten; Sherry Davis, Income Maintenance Worker; and Missouri
Chamber of Commerce.

OPPONENTS:  Those who oppose the bill say that legislation
should contain less emphasis on punishment and sanctions and
more emphasis on education and training.

Testifying against the bill were Missouri Association for Social
Welfare; and Reform Organization of Welfare.

Debra Cheshier, Senior Legislative Analyst

HB 1337 -- Work First Welfare Reform Act

Co-Sponsors:  Reinhart, Kasten

This bill establishes the "Work First Welfare Reform Act" to
assist needy families with children in becoming self-sufficient,
and to implement the requirements of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (PRWORA), the
federal welfare reform bill.

The Department of Social Services is required to implement this
act effective July 1, 1998, with appropriated federal and state
funds.  State funds are to be appropriated at a level of at
least 80% of the fiscal year 1994 expenditures for the major
federal public assistance programs.  This level of state funding
is required over a 4 year period.  The department is required to
submit an annual report to the Speaker of the House and the
President Pro Tem of the Senate, detailing the level and scope
of state fund expenditures for the act.  This report is to also
include information on the number of legal immigrants in the
state who have received assistance during the past year and in
the preceding 4 years, and a statement that federal law allows
the General Assembly to eliminate public assistance benefits for
legal immigrants.

Eligibility requirements for receiving cash and non-cash
assistance under this act are outlined and include:

(1)  Participation in an approved work activity within 24 months
of receiving assistance, or earlier if the department determines
that recipients are work-ready.  Applicants for assistance are
required to apply for work, apply for or engage in a work
activity, or immediately go to work, beginning on the day that
application for benefits is made;

(2)  Cooperation in establishing paternity and enforcing child
support orders, and assignment of child support obligations;

(3)  Income and resource limits no more restrictive than those
in place on August 22, 1996, for the Aid to Families with
Dependent Children (AFDC) program, and which are to be
determined by the department and applied uniformly throughout
the state;

(4)  U.S. citizenship and Missouri residency; and

(5)  Evidence that a family is deprived of parental support.

There is a 5 year limit on the receipt of benefits, beginning
July 1, 1997.

Unmarried individuals under age 18, who have a minor child and
are otherwise eligible for benefits, must reside with a parent,
adult relative, or in an approved adult-supervised setting, in
order to receive benefits under this act.  Such individuals must
also be participating in approved educational programs if they
have not completed high school or its equivalent.  Cash benefit
levels are reduced by up to 50% if an applicant or recipient is
truant, pursuant to state law.

The department is to develop an application form, with required
information outlined in the bill, for use in determining
eligibility.  Applicants must provide a valid social security
number, and state whether any member of the household has been
convicted of certain felony drug offenses, and whether any
member of the household has received or is currently receiving
any form of public assistance from any state.  The Division of
Motor Vehicle and Drivers' Licensing is to make records
available to enable the department to verify whether an
applicant or recipient owns a vehicle or has a valid driver's
license.

The amount of cash and levels of non-cash assistance provided to
families is to be determined by the department through an
individualized assessment, known as the self-sufficiency pact.
All assistance provided must comply with the mandatory
provisions of the PRWORA and be aimed at promoting work--
readiness and self-sufficiency.

Job displacement of employees by a recipient is prohibited; a
grievance procedure within the Department of Labor and
Industrial Relations for resolving complaints alleging job
displacement is provided.

Individuals ineligible for benefits include:

(1)  Those convicted after August 22, 1996, of a felony drug
offense are ineligible for between 3 and 10 years from the date
of conviction, depending on the type of offense, and whether the
individual was receiving benefits when convicted;

(2)  Those convicted of fraudulently representing residency in
order to obtain benefits from 2 or more states are ineligible
for 10 years from the date of conviction;

(3)  Individuals who violate a condition of probation or parole;
and

(4)  Those who flee to avoid prosecution, custody or confinement.

The department is required to submit a state plan outlining the
provisions of the Work First Welfare Reform Act; the work
requirements for parents and caretakers; the provisions for
safeguarding confidentiality and recipient privacy; the actions
undertaken to reduce the state's out-of-wedlock pregnancy rate;
the provision of a program to law enforcement and related
agencies to foster the inclusion of men in teenage pregnancy
prevention programs; the state's intent, in implementing the
act,  to treat families moving into Missouri differently from
those with residency in Missouri; and a description of any
allowable options exercised by the state in implementing the
PRWORA.  A summary of the written plan must be made available to
the public.

This bill establishes the Joint Legislative Social Services
Block Grant Oversight Committee, comprised of 7 members of the
Senate and 7 House members.  The Joint Committee is responsible
for formulating state policy concerning the provision of
assistance to needy families, an annual review of the
established state waivers with recommendations on their
continuance or discontinuance, an evaluation of the appropriate
funding levels for the Work First Welfare Reform Act, and
recommendations on which categories of needy individuals to
exempt from the work participation requirements.  The Joint
Committee is to submit its recommendations to the President Pro
Tem of the Senate and the Speaker of the House.