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SPONSOR: |
Lopez |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Continue Welfare Reform Oversight Committee |
SB |
289 |
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ANALYST: |
Maloy |
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See NarrativeSignificant |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to (combines elements of) HB 122 with HB
131.
Responses
Received From
Human
Services Department
SUMMARY
Synopsis
of Bill
Senate Bill 289 seeks to revise statutory
requirements under several sections of the New Mexico Works Act (NMWA) which
guide the state's Temporary Assistance for Needy Families (TANF) cash
assistance program. SB 289 provides for
emergency enactment of these amendments.
The amendments in SB
289 contain the following provisions:
1) Reauthorize the Welfare Reform
Oversight Committee, an interim legislative committee, for an additional three
years, until the December 15th prior to the first session of the 49th
Legislature (page 1, line 23), or for five additional years.
2) Allow a child age eighteen through age twenty-one to continue to receive NMW/TANF cash assistance as long as the child is enrolled in school and is receiving special education services regulated by the state board of education (page 2, lines 23-25).
3) Add a definition of "vehicle" (page 4, lines 14-18) for the purpose of excluding certain vehicles from consideration as a resource subject to the non-liquid resource limit in the NMWA.
4) Exclude any vehicle used for transportation of the family to or from employment, or other daily living activities, from consideration as a resource when determining the non-liquid resources held by the family (page 8, lines 8-12). Recreational vehicles are not excluded from consideration as a resource held by the family.
5) Add a statutory requirement that vehicles, as defined, owned by the benefit group cannot be considered in determining the resources attributed to the $2,000 non-liquid resource limit (page 8, lines 13-15).
6) Continue NMW/TANF cash assistance based
on hardship definitions after the 60-month time limit if the adult or minor
head of household has an application for supplemental security income (SSI)
pending or on appeal, and adds conditions for continued cash assistance
based on this hardship factor (page 6, lines 19-25 through page 7, line
1).
The additional conditions for the SSI hardship extension include a determination that the individual is either temporarily or completely disabled and unable to engage in work activities or because the individual was granted a waiver from work requirements of the TANF/NMW cash assistance program in the 24-month period preceding the month in which the individual reaches his or her 60-month time limit.
7) Allow the Human Services Department (HSD) the flexibility to further define conditions, in addition to those required by the NMWA, for determining who qualifies for cash assistance based on hardship after the 60-month time limit is reached (page 6, lines 24-25 through page 7, line 1).
8) Prohibit sanctioning, and reducing the NMW/TANF cash assistance payment, of adult members in the benefit group for their failure to report that a dependent child is not attending school (page 10, lines 3-5).
Significant Issues
HSD reports having found the Welfare
Reform Oversight Committee to be an important vehicle for the Department to
communicate and educate Committee members about agency performance, programs,
policies, and proposals.
The amendments in SB 289 are based on on-going
discussion with representatives of the
TANF/NMW regulations will be simplified by
conforming cash assistance regulations with Food Stamp Program regulations
where vehicles are concerned.
The amendments will expand eligibility for some
families or individuals, but will limit eligibility for others, particularly
those seeking a hardship extension for other families.
FISCAL
IMPLICATIONS
Welfare Reform Oversight Committee: The fiscal impact is estimated at $200.0 over
the five- year period. The expenditures
for the last committee were approximately $40.0 annually.
NMWA/TANF: These changes can
likely be accomplished within the budget.
However, funds must be shifted by legislative appropriation to the
appropriate TANF budget categories. The
costs to be covered within existing budgets are as follows:
a) The
provision to allow a child age 18-21 to continue to receive TANF cash assistance
as long as the child is enrolled in school and is receiving special education
services is expected to affect 170 cases at a cost of approximately $285.9 to
the general fund.
b) The
provision to expand eligibility for TANF/NMW cash assistance by excluding the
value of vehicles used for transportation of the family from consideration as a
resource when determining non-liquid resources is expected to result in 250 additional
eligible families at a projected cost of $975.0 to the TANF block grant.
c) The
provision to place additional conditions for extension of the SSI hardship definition
to reduce the number of cases extended for hardship by an estimated 25 would result in a savings
to the program of $97.5.
d) The cost for
computer enhancement of ISD2 to facilitate implementation of these provisions
is expected to be $50.0 in non-recurring costs to the general fund.
Initially, there will
be a administrative costs relating to the promulgation
of rules and in employee and public education.
These costs are included in the base staff and budget resources.
ADMINISTRATIVE
IMPLICATIONS
HSD employees spend time preparing presentations, written reports and correspondences for the Welfare Reform Oversight Committee. HSD employees also spend time attending hearings and giving testimony before the Welfare Reform Oversight Committee.
If enacted, the amendments in SB 289 would
require the HSD to promulgate regulations to implement the statutory changes on
an emergency basis. The state
regulations become effective upon publication in the New Mexico Register.
The amendments will require an accelerated
training initiative by regional trainers of Income Support Division (ISD) field
staff who determine eligibility for participation of families in the NMW/TANF
cash assistance program.
The amendment addressing special education
students would require the expenditure of State funds only since the federal
definition of “dependent” does not allow for individuals above the age of nineteen. Therefore, a separate cost center would need
to be created so that the Department can track
these expenditures separately and ensure that only State funds are being spent
on this program.
The amendments related to vehicles will simplify
the eligibility process for ISD caseworkers because the TANF/NMW rules will
align more closely with those in the Food Stamp Program.
The amendment addressing SSI hardship would
require some additional review by the Incapacity Review Unit within ISD to
determine whether these individuals were previously found to be either temporarily
or completely disabled.
RELATIONSHIP
SB 289 essentially combines the major elements
of HB 122 and HB 131.
OTHER
SUBSTANTIVE ISSUES
1) The bill ensures that children with
special needs are not excluded from the benefit group upon reaching age
eighteen (18) because they have not graduated from high school. Children with special-needs will be able to
continue to receive NMW/TANF cash assistance through 21 years of age. It is estimated that there about 170 special
needs children statewide who receive NMW/TANF cash assistance and will be able
to continue to participate in the NMW Program.
2) The bill expands eligibility for
TANF/NMW cash assistance for families who own vehicles and use their vehicle
for transportation to and from work, or for participation in work
activities. Families that have been
denied due to the value of a vehicle will be able to reapply and, if otherwise
eligible, participate in the NMW/TANF cash assistance program. This will align NMW/TANF regulations to the
Food Stamp Program regulations for considering vehicles. This will also simplify regulations and will
address a concern expressed by advocates that there
are too many confusing regulations for both eligibility staff and clients to
understand.
3) The bill amendment will limit
eligibility for an extension of NMW/TANF cash assistance based on hardship when
an adult has made application for SSI with the Social Security Administration.
The bill requires a finding of a disability, either current or at some point
within the last twenty-four months, to be used in combination with an
application for SSI as a deciding factor for extending NMW/TANF cash assistance
based on hardship. The intent is to discourage excessive SSI applications by
benefit group members in the 60th month of receipt of NMW/TANF cash
assistance, for the sole purpose of continuing NMW/TANF cash assistance under
hardship provisions. HSD records clearly demonstrate that adults apply for SSI
in the 60th month when there is no indication of a disability, for
the sole purpose of continuing NMW/TANF cash assistance.
4) The bill allows HSD to consider additional
reasons for extending NMW/TANF cash assistance based on hardship once an adult
in the benefit group reaches 60 months of receipt of cash assistance. This meets the requirements for extending
hardship found in the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, Title I, Section 103(a), which amended Part A of
Title IV of the Social Security Act by adding Section 408(a)(7)(C). Some of the hardship reasons suggested by
advocates over the years include: 1) those TANF recipients engaged in education
or training programs upon reaching the 60-month term limit; or 2) those TANF
recipients who have "played by the rules" and never been sanctioned
but cannot find a job or do not earn enough money such that NMW/TANF cash assistance
is no longer needed.
5) The NMWA requires a parent of a
dependent child in the benefit group to report when that child has three
unexcused absences from school. The
parent has fourteen days to report the child's absences to HSD. The NMWA also allows HSD to sanction and
reduce benefits when a benefit group member fails to comply with reporting
requirements. However, it is understood
that there are situations where a parent does not know the child has three
unexcused absences or is not in school.
This bill ensures that a parent is not sanctioned for failing to report
when the parent does not know in the first place; the child's needs continue to
be removed from the benefit group's payment amount and all other school
attendance requirements for the child and parent continue to apply.
SJM/yr:prr