HOUSE BILL No. 5936 April 23, 2002, Introduced by Reps. Jelinek, Raczkowski, Jacobs, Vander Veen, Stewart, Bovin, Pappageorge, Bogardus, Richardville, Voorhees, Plakas, Lipsey, Birkholz, Waters, Quarles and Meyer and referred to the Committee on Family and Children Services. A bill to amend 1939 PA 280, entitled "The social welfare act," by amending sections 6, 41, 57, and 57a (MCL 400.6, 400.41, 400.57, and 400.57a), section 6 as amended and section 57 as added by 1995 PA 223 and section 57a as amended by 1999 PA 26. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 6. (1) The family independence agency may promulgate 2 all rules necessary or desirable for the administration of pro- 3 grams under this act. Rules shall be promulgated under the 4 administrative procedures act of 1969,Act No. 306 of the Public5Acts of 1969, being sections 24.201 to 24.328 of the Michigan6Compiled Laws. Beginning 2 years after the effective date of7subsection (2), if the Michigan supreme court rules that sections845 and 46 of Act No. 306 of the Public Acts of 1969, being9sections 24.245 and 24.246 of the Michigan Compiled Laws, are03455'01 GWH 2 1unconstitutional and a statute requiring legislative review of2administrative rules is not enacted within 90 days after the3Michigan supreme court ruling, this subsection does not apply4 1969 PA 306, MCL 24.201 TO 24.328. 5 (2) The family independence agency may develop regulations 6 to implement the goals and principles of assistance programs cre- 7 ated under this act, including all standards and policies related 8 to applicants and recipients that are necessary or desirable to 9 administer the programs.These regulations are effective and10binding on all those affected by the assistance programs. Except11for policies described in subsections (3) and (4), regulations12described in this subsection, setting standards and policies nec-13essary or desirable to administer the programs, are exempt until14the expiration of 12 months after the effective date of this sub-15section from the rule promulgation requirements of the adminis-16trative procedures act of 1969, Act No. 306 of the Public Acts of171969, being sections 24.201 to 24.328 of the Michigan Compiled18Laws. Upon the expiration of 12 months after the effective date19of this subsection, regulations described in this subsection are20not effective and binding unless processed as emergency rules21under section 48 of Act No. 306 of the Public Acts of 1969, being22section 24.248 of the Michigan Compiled Laws, or promulgated in23accordance with Act No. 306 of the Public Acts of 1969.24 (3) The family independence agency may develop policies to 25 establish income and asset limits, types of income and assets to 26 be considered for eligibility, and payment standards for 27 assistance programs administered under this act. Policies 03455'01 3 1 developed under this subsection are effective and binding on all 2 those affected by the assistance programs. FOR AN ADULT WHO IS 3 UNABLE TO LIVE WITHOUT ASSISTANCE DUE TO PHYSICAL OR MENTAL DIS- 4 ABILITY AND WHO DOES NOT LIVE IN A HEALTH FACILITY OR AGENCY AS 5 DEFINED IN SECTION 20106 OR UNDER SECTION 20115 OF THE PUBLIC 6 HEALTH CODE, 1978 PA 368, MCL 333.20106 AND 333.20115, A POLICY 7 ESTABLISHING INCOME AND ASSET LIMITS DEVELOPED UNDER THIS SUBSEC- 8 TION SHALL CONSIDER ONLY THAT ADULT'S INCOME AND ASSETS IN DETER- 9 MINING ELIGIBILITY. Policies described in this subsection are 10 exempt from the rule promulgation requirements ofAct No. 306 of11the Public Acts of 1969THE ADMINISTRATIVE PROCEDURES ACT OF 12 1969, 1969 PA 306, MCL 24.201 TO 24.328. Not less than 30 days 13 before policies developed under this subsection are implemented, 14 they shall be submitted to the senate and house standing commit- 15 tees and appropriation subcommittees with oversight of human 16 services. 17 (4) The family independence agency may develop policies to 18 implement requirements that are mandated by federal statute or 19 regulations as a condition of receipt of federal funds. Policies 20 developed under this subsection are effective and binding on all 21 those affected by the programs. Policies described in this sub- 22 section are exempt from the rule promulgation requirements of 23Act No. 306 of the Public Acts of 1969THE ADMINISTRATIVE PRO- 24 CEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328. 25 (5) All rules, regulations, and policies established by the 26 family independence agency shall be in writing, shall be provided 27 to the legislature, and shall be made available for inspection by 03455'01 4 1 any member of the public at all offices of the family 2 independence agency during regular business hours. 3(6) Until the expiration of 12 months after the effective4date of this subsection, a bipartisan task force of legislators5appointed in the same manner as members are appointed to standing6committees of the legislature shall meet regularly with the7family independence agency to review proposed policies and regu-8lations for the family independence program. Meetings of the9bipartisan task force are subject to the open meetings act, Act10No. 267 of the Public Acts of 1976, being sections 15.261 to1115.275 of the Michigan Compiled Laws.12 (6)(7)Subsection (2) does not apply to standards and 13 policies related tothe providersA PROVIDER of serviceswhich14haveTHAT HAS a written contractual relationship orareTHAT 15 IS an enrolled medicaid provider with the family independence 16 agency. 17 Sec. 41. If at any time after approval of a grant of 18 assistance the recipient,or, EXCEPT AS PROVIDED IN THIS 19 SECTION, the spouse of the recipient,becomes possessed of any 20 property or income of which the countydepartment of social21welfareFAMILY INDEPENDENCE AGENCY has no knowledge, it shall be 22 the duty of the recipient to notifysaidTHAT county 23 department,of social welfarewhich shall report and make rec- 24 ommendations to the state department, which in turn may cancel, 25 suspend, or alter the certificate of allowance. THIS SECTION 26 DOES NOT APPLY TO THE SPOUSE OF AN ADULT WHO IS UNABLE TO LIVE 27 WITHOUT ASSISTANCE DUE TO PHYSICAL OR MENTAL DISABILITY AND WHO 03455'01 5 1 DOES NOT LIVE IN A HEALTH FACILITY OR AGENCY AS DEFINED IN 2 SECTION 20106 OR UNDER SECTION 20115 OF THE PUBLIC HEALTH CODE, 3 1978 PA 368, MCL 333.20106 AND 333.20115. 4 Sec. 57. (1) As used in this section and sections 57a to 557g57l: 6 (a) "Adult-supervised household" means either of the 7 following: 8 (i) The place of residence of a parent, stepparent, or legal 9 guardian of a minor parent. 10 (ii) A living arrangement not described in subparagraph (i) 11 that the family independence agency approves as a family setting 12 that provides care and control of a minor parent and his or her 13 child and supportive services including, but not limited to, 14 counseling, guidance, or supervision. 15 (b) "Caretaker" means an individual who is acting as parent 16 for a child in the absence or because of the disability of the 17 child's parent or stepparent and who is the child's legal guardi- 18 an, grandparent, great grandparent, great-great grandparent, sib- 19 ling, stepsibling, aunt, great aunt, great-great aunt, uncle, 20 great uncle, great-great uncle, nephew, niece, first cousin, or 21 first cousin once-removed, a spouse ofanyA person listed 22 above, a parent of the putative father, or an unrelated individ- 23 ual aged 21 or older whose appointment as legal guardian of the 24 child is pending. 25 (c) "Child" means an individual who is not emancipated under 26Act No. 293 of the Public Acts of 1968, being sections 722.1 to27722.6 of the Michigan Compiled Laws1968 PA 293, MCL 722.1 TO 03455'01 6 1 722.6, who lives with a parent or caretaker, and who is either of 2 the following: 3 (i) Under the age of 18. 4 (ii) Age 18 or 19, a full-time high school student, and rea- 5 sonably expected to graduate from high school before the age of 6 20. 7 (d) "Family" means 1 or more of the following: 8 (i) A household consisting of a child and either of the 9 following: 10 (A) A parent or stepparent of the child. 11 (B) A caretaker of the child. 12 (ii) A pregnant woman. 13 (iii) A parent of a child in foster care. 14 (iv) AN ADULT WHO IS UNABLE TO LIVE WITHOUT ASSISTANCE DUE 15 TO PHYSICAL OR MENTAL DISABILITY AND WHO DOES NOT LIVE IN A 16 HEALTH FACILITY OR AGENCY AS DEFINED IN SECTION 20106 OR UNDER 17 SECTION 20115 OF THE PUBLIC HEALTH CODE, 1978 PA 368, MCL 18 333.20106 AND 333.20115. 19 (e) "Family independence assistance" means financial assist- 20 ance provided to a family under the family independence program. 21 (f) "Family independence assistance group" means all those 22 members of a program group who receive family independence 23 assistance. 24 (g) "Family independence program" means the program of 25 financial assistance established under section 57a. 26 (h) "Minor parent" means an individual under the age of 18 27 who is not emancipated underAct No. 293 of the Public Acts of03455'01 7 119681968 PA 293, MCL 722.1 TO 722.6, and who is either the 2 biological parent of a child living in the same household or a 3 pregnant woman. 4 (i) "Payment standard" means the standard upon which family 5 independence program benefits are based if the family indepen- 6 dence assistance group has no net income. 7 (j) "Program group" means a family and all those individuals 8 living with a family whose income and assets are considered for 9 purposes of determining financial eligibility for family indepen- 10 dence assistance. 11 (k) "Recipient" means an individual receiving family inde- 12 pendence assistance. 13 (l) "Social contract" means a document described in section 14 57e that is executed by a family in return for the receipt of 15 family independence assistance. 16 (m) "Substance abuse" means that term as defined in section 17 6107 of the public health code,Act No. 368 of the Public Acts18of 1978, being section 333.6107 of the Michigan Compiled Laws19 1978 PA 368, MCL 333.6107. 20 (n) "Substance abuse treatment" means outpatient or inpa- 21 tient services or participation in alcoholics anonymous or a sim- 22 ilar program. 23 (o) "Work first" means the program of employment and train- 24 ing administered by the Michiganjobs commissionDEPARTMENT OF 25 CAREER DEVELOPMENT for applicants and recipients of family inde- 26 pendence assistance. 03455'01 8 1 (2) A reference in this act to "aid to dependent children" 2 or "aid to families with dependent children" means "family 3 independence assistance". 4 Sec. 57a. (1) The family independence agency shall estab- 5 lish and administer the family independence program to provide 6 assistance to families who are making efforts to achieve 7 independence. 8 (2) The family independence agency shall administer the 9 family independence program to accomplish all of the following: 10 (a) Provide financial support to eligible families while 11 they pursue self-improvement activities and engage in efforts to 12 become financially independent. 13 (b) Ensure that recipients who are minor parents live in 14 adult-supervised households in order to reduce long-term depen- 15 dency on financial assistance. 16 (c) Assist families in determining and overcoming the barri- 17 ers preventing them from achieving financial independence. 18 (d) Ensure that families pursue other sources of support 19 available to them. 20 (3)TheSUBJECT TO SUBSECTION (4), THE family independence 21 agency shall establish income and asset levels for eligibility, 22 types of income and assets to be considered in making eligibility 23 determinations, payment standards, composition of the program 24 group and the family independence assistance group, program bud- 25 geting and accounting methods, and client reporting requirements 26 to meet the following goals: 03455'01 9 1 (a) Efficient, fair, cost-effective administration of the 2 family independence program. 3 (b) Provision of family independence assistance to families 4 willing to work toward eventual self-sufficiency. 5 (4) IN DETERMINING WHETHER AN ADULT WHO IS UNABLE TO LIVE 6 WITHOUT ASSISTANCE DUE TO PHYSICAL OR MENTAL DISABILITY AND WHO 7 DOES NOT LIVE IN A HEALTH FACILITY OR AGENCY AS DEFINED IN SEC- 8 TION 20106 OR UNDER SECTION 20115 OF THE PUBLIC HEALTH CODE, 1978 9 PA 368, MCL 333.20106 AND 333.20115, MEETS THE INCOME AND ASSET 10 LEVELS REQUIREMENT ESTABLISHED UNDER SUBSECTION (3), THE FAMILY 11 INDEPENDENCE AGENCY SHALL CONSIDER ONLY THAT ADULT'S INCOME AND 12 ASSETS. 13 (5)(4)Not later than October 1, 2001, the family inde- 14 pendence agency shall implement an automated finger imaging 15 system designed to prevent an individual from receiving cash 16 assistance, food stamps, or both under more than 1 name. 17 Beginning at the effective date of the establishment and imple- 18 mentation of the finger imaging system, an individual applying 19 for cash assistance, food stamps, or both must provide the family 20 independence agency with an automated finger image or images as a 21 condition of eligibility. Finger imaging obtainedpursuant to22 IN ACCORDANCE WITH this subsection shall be used only for the 23 purposes of reducing fraud in obtaining public benefits or 24 assistance under this act. 25 (6)(5)The family independence agency shall establish the 26 automated finger image system that, at a minimum, includes the 27 following: 03455'01 10 1 (a) Confidentiality of the automated finger image records 2 takenpursuant toIN ACCORDANCE WITH this section. 3 (b) A system for administrative appeal of a matter relating 4 to the taking or verification of an individual's automated finger 5 image. 6 (c) A requirement to exempt children from providing the 7 automated finger image unless there is a reasonable suspicion 8 that the family group is committing fraud. For the purpose of 9 this subdivision, "family group" means a family and all those 10 individuals living with a family who apply for or receive cash 11 assistance, food stamps, or both. 12 (d) A requirement to exempt individuals from whom the auto- 13 mated finger image technology is unable to obtain an accurate 14 finger image. 15 (e) A requirement to exempt patients placed in nursing homes 16 from providing the automated finger image. 17 (f) In addition to the population groups named in 18 subdivisions (c), (d), and (e), authority to exempt certain other 19 population groups from providing the automated finger image 20 including, but not limited to, homebound recipients. 21 (7)(6)The family independence agency shall remove an 22 individual's finger image from the department's file if the indi- 23 vidual has not received benefits or assistance from the family 24 independence agency within the previous 12 months. 25 (8)(7)The family independence agency may negotiate and 26 enter into a compact or reciprocal agreement with another state 27 department, the federal government, an agency of the federal 03455'01 11 1 government, or an agency of another state for the purpose of 2 implementing and administering the finger imaging provisions of 3 this section as long as the compact or reciprocal agreement is 4 not inconsistent with the limitations of use and access contained 5 in subsection(4)(5). 6 (9)(8)The family independence agency shall conduct 7 semi-annual security reviews to monitor the automated finger 8 imaging system to insure that all of the following occur: 9 (a) All records maintained as part of the system are accu- 10 rate and complete. 11 (b) Effective software and hardware designs have been insti- 12 tuted with security features to prevent unauthorized access to 13 records. 14 (c) Access to record information is restricted to authorized 15 personnel. 16 (d) System and operational programs are used that will pro- 17 hibit inquiry, record updates, or destruction of records from a 18 terminal other than automated finger imaging system terminals 19 that are designated to permit inquiry, record updates, or 20 destruction of records. 21 (e) System and operational programs are used to detect and 22 report all unauthorized attempts to penetrate an automated finger 23 imaging system, program, or file. 24 (10)(9)Beginning December 31 of the first year the auto- 25 mated finger imaging system has been fully implemented, the 26 family independence agency shall compile and report annually to 27 the senate and house committees having jurisdiction over family 03455'01 12 1 independence agency matters the following information concerning 2 the operation of the automated finger imaging system: 3 (a) An analysis of the costs and savings of the system 4 including, but not limited to, administrative costs, operation 5 costs, and actual savings due to confirmed fraud and fraud 6 deterrence. 7 (b) The number of individuals who have applied for assist- 8 ance under more than 1 name. 9 (c) The number of individuals refusing to provide a finger 10 image and the reasons for the refusal. 11 (d) A detailed summary of the results of reviews required by 12 subsection(8)(9). 13 (11)(10)Except as necessary to carry out a compact or 14 agreement under subsection(7)(8) or unless otherwise required 15 by law, the family independence agency shall not sell, transfer, 16 or release information identifying an individual named in the 17 automated finger imaging system record to a third person, includ- 18 ing, but not limited to, another state department or agency. 19 (12)(11)A person shall not disclose information from the 20 automated finger imaging system record in a manner that is not 21 authorized by law or rule. A violation of this subsection is a 22 misdemeanor punishable by imprisonment for not more than 93 days 23 or a fine of not more than $500.00, or both. 24 (13)(12)At the time an individual applies for cash 25 assistance, food stamps, or both, the family independence agency 26 shall inform the individual of all of the following: 03455'01 13 1 (a) The requirement to allow the department to take a finger 2 image from the individual. 3 (b) The fact that the finger image may be compared to the 4 finger images of other benefit recipients to prevent duplicate 5 participation. 6 (c) The fact that the department is prohibited by law from 7 using the finger image for a different purpose. 03455'01 Final page. GWH