SENATE BILL NO. 98 An Act making changes related to the aid to families with dependent children program, the Medicaid program, the general relief assistance program, and the adult public assistance program; directing the Department of Health and Social Services to apply to the federal government for waivers to implement the changes where necessary; relating to eligibility for permanent fund dividends of certain individuals who receive state assistance, to notice requirements applicable to the dividend program; and providing for an effective date. Co-chairman Halford directed that SB 98 be brought on for discussion. SENATOR LYDA GREEN came before committee accompanied by her aide, MIKE TIBBLES. END: SFC-96, #73-B, Side 1 BEGIN: SFC-96, #73-B, Side 2 She directed attention to a work draft CSSB 98 (9-LS0692\N, Lauterbach, 4/10/96) and explained that the draft provides the option for waivers if federal legislation is not forthcoming. If federal law is enacted, the proposed bill provides the department the ability to go forward with new federal requirements. She suggested that time could be saved in review of the draft since Pages 2 through the top of Page 7 replicate HB 78 which was passed last year. Provisions of the Diversion Program set forth on Page 7 were in HB 78 and picked up by the Governor for inclusion within his bill. Pointing to provisions relating to Ineligibility for Assistance (set forth at Page 8 as Section 2), Senator Green advised that (a) language is from the Federal Code of Regulations. Subsection (b) is new language relating to individuals who intentionally transfer assets to other individuals so that the individual making the transfer can become eligible for benefits. Subsection (c) at Page 9 was included in the Governor's bill, SB 98, and HB 78. The same is true for provisions relating to Assistance to Minors with Children (Pages 9 through 11). Senator Rieger raised a question regarding reference to "other adult relative" at Page 9. Senator Green explained that provisions attempt to give latitude to situations in which a minor, with a child, does not wish to live at home with parents. The minor may choose to live with another relative. Directing attention to Page 11, line 6, Senator Green referenced the 3 percent deferred benefit and advised that she envisioned the benefit going directly to a child care grant which would follow an individual once the individual goes off benefits. It responds to complaints that recipients are often suddenly off benefits with no opportunity or funds to afford child care. It provides an extension following the two years during which the recipient prepared to go back to work. The department does not agree with this provision. In response to a question by Senator Rieger regarding funding for child care, Senator Green advised that it would be provided via a fiscal note to accompany the bill. The "shelter allowance" at Page 11, line 24, reflects new language incorporated within the Governor's bill. Those who qualify for shelter allowance may also qualify for 100 percent of the AFDC program. They would then receive benefits in excess of those received by other AFDC recipients. Language at Page 11 provides for accountability and a deduct based on the percentage of the subsidized housing. Page 12, subsection (i) at line 4, also contains a new concept. It relates to seasonal benefit reductions for those receiving unemployment. The provision was taken from the Governor's bill and incorporated as part of the legislature's waiver proposal. Section 6, at Page 12, addresses time limits on benefits. Language is a modification of that in HB 78. It provides that individuals are not eligible for more than 24 months of assistance during any 60 consecutive months. In HB 78 this requirement was tied to the Jobs Program. It is the standard in this legislation. There will no longer be a two-tiered approach. Section 7, on Page 13, is a modification of language from the Governor's bill. Senator Green noted an attempt within HB 78 to tie continuing family qualification to school attendance by dependent children. That became cumbersome. Modified language requires the minor parent to remain in school. Co-chairman Halford noted need to conclude the meeting for members' attendance at the Senate floor session. He announced that the next meeting would commence with continued discussion of SB 98. ADJOURNMENT The meeting was adjourned at approximately 11:05 a.m.