S170

SENATE, No. 170

STATE OF NEW JERSEY

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Senator McGREEVEY

An Act supporting education, employment and families among public assistance recipients and revising parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) Sections 1 through 7 of this act shall be known and may be cited as the "Welfare to Work Act."

2. (New section) The Legislature finds and declares that children and teenagers need the benefits of the support and guidance which a family structure provides; that the welfare system has provided a vehicle for breaking up families by giving teenage mothers the means to shift their financial dependence from their parents to the State; that in the process, these youths deprive themselves of the education and family structure necessary to support themselves and their babies; that the support and structure provided by families are important to the development of a child's maximum potential; that the State has demonstrated its commitment to the strengthening of families by establishing the Family Development Initiative pursuant to the "Family Development Act," P.L.1991, c.523 (C.44:10-19 et seq.); and that the State needs to take further action to build upon the provisions of that law by removing the incentive for children to have children and encouraging families to stay together.

3. (New section) a. An applicant for, or recipient of, benefits under the program of aid to families with dependent children, or AFDC, established pursuant to P.L.1959, c.86 (C.44:10-1 et seq.) shall be required, as a condition of eligibility for AFDC benefits for the applicant or recipient and the applicant's or recipient's dependent child, to reside in a home maintained by, and have the AFDC benefits paid to, the applicant's or recipient's parent, legal guardian, or other adult relative, if the applicant or recipient meets all of the following conditions:

(1) is less than 18 years of age;

(2) has never married; and

(3) is pregnant, or is caring for a dependent child.

b. The Commissioner of Human Services shall exempt from the provisions of subsection a. of this section an AFDC applicant or recipient who, as determined by the commissioner during the application or eligibility redetermination process, as appropriate, presents evidence that the parent, legal guardian or other adult relative with whom the applicant or recipient would otherwise be required to reside in order to be eligible for benefits:

(1) refuses or is unable to allow the applicant or recipient, or that person's dependent child, to reside in that adult's home;

(2) poses a threat to the emotional health or physical safety of the applicant or recipient;

(3) has physically or sexually abused the applicant or recipient, or the applicant's or recipient's dependent child, or poses a risk of doing so;

(4) has exhibited neglect with respect to the needs of the applicant or recipient and the applicant's or recipient's dependent child; or

(5) has expended AFDC benefits in an improper manner.

The commissioner may also exempt an AFDC applicant or recipient from the provisions of subsection a. of this section, if the commissioner otherwise determines that the exemption would be in the best interest of that person and the person's dependent child.

The commissioner shall provide an appropriate appeal mechanism for an applicant or recipient to present evidence that would provide the basis for an exemption pursuant to this subsection.

c. A recipient of AFDC benefits shall be subject to the provisions of subsection a. of this section at the time of that person's redetermination of eligibility for benefits.

d. In the case of an AFDC applicant or recipient and the applicant's or recipient's dependent child who are exempted from the requirements of this act in accordance with subsection b. of this section, the county welfare agency or the Family Development Initiative representative who serves as their case manager pursuant to the "Family Development Act," P.L.1991, c.523 (C.44:10-19 et seq.), shall make a determination as to the most appropriate living arrangement that would be in the best interest of the applicant or recipient and the applicant's or recipient's dependent child.

4. (New section) a. Subject to the provisions of subsections b. and c. of this section, if a school-age recipient of benefits under the program of aid to families with dependent children fails to meet a requirement for regular school attendance without good cause as determined by the Commissioner of Human Services, the recipient shall thereupon be subject to a reduction in benefits of at least 20%, or shall become ineligible for benefits for a period of at least 90 days. The recipient's re-establishment of eligibility for benefits is subject to the recipient complying with the school attendance requirement or indicating a willingness to do so. For a subsequent failure or refusal to meet the school attendance requirement without good cause, the recipient may be subject to a termination of benefits.

b. The provisions of subsection a. of this section shall not apply to: a recipient whom the commissioner determines, based upon an assessment of the person's ability and aptitude, lacks a reasonable prospect of being able to successfully complete the academic requirements of a high school or equivalency program of study, in which case the commissioner shall refer the recipient to an alternative educational program as appropriate; or to a recipient who is gainfully employed or engaged in a job search or job training activity.

c. The provisions of subsection a. of this section shall not apply to a recipient whom the commissioner determines has been unable to secure appropriate child care for the recipient's dependent child.

5. (New section) a. Commencing with the fiscal or calendar accounting year that begins after the date of enactment of this act, a taxpayer shall be allowed a credit for the fiscal or calendar accounting year, subject to the provisions of subsection b. of this section, against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), for hiring a new qualifying employee. The credit shall be calculated by multiplying by $100 the number of full months after the new qualifying employee becomes ineligible for financial assistance pursuant to P.L.1959, c.86 (C.44:10-1 et seq.) or P.L.1947, c.156 (C.44:8-107 et seq.), as a result of earned income, that the new qualifying employee was employed by the taxpayer. The amount of the credit for a new qualifying employee shall not exceed $1,200 in a fiscal or calendar accounting year. A taxpayer entitled to a credit under this section for a fiscal or calendar accounting year may carry over and apply to its tax liability for one or more of the next succeeding five fiscal or calendar accounting years, the portion of its credit, reduced from year to year, which exceeds its tax liability for the fiscal or calendar accounting year.

b. The tax imposed for a fiscal or calendar accounting year pursuant to section 5 of P.L.1945, c.162, shall first be reduced by the amount of any credit allowed pursuant to section 19 of P.L.1983, c.303 (C.52:27H-78), and then by any credit allowed pursuant to section 42 of P.L.1987, c.102 (C.54:10A-5.3), prior to applying any credits allowed pursuant to this section. Credits allowed pursuant to this section shall be applied in the order of the credits' accounting years. The amount of the credits applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, for an accounting year shall not exceed 50% of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162. The amount of accounting year credit otherwise allowable under this section which cannot be applied to the accounting year due to the limitations of this subsection may be carried over, if necessary, to the 10 accounting years following a credit's accounting year.

c. For the purposes of this section:

"New qualifying employee" means an employee who is employed within the State by an employer and is hired for the first time by the employer during the year prior to the year for which a credit is allowed pursuant to this section, and who, at the time that employment commences, is eligible for benefits under the program of aid to families with dependent children established pursuant to P.L.1959, c.86 (C.44:10-1 et seq.) or the program of general public assistance established pursuant to P.L.1947, c.156 (C.44:8-107 et seq.), except that the employee shall not be regarded as a new qualifying employee for the purposes of this section unless the hiring of the employee results in an increase in the number of employees employed by the employer within the State at any one time during the year for which the credit is allowed, compared with the maximum number of employees employed by the employer within the State at any one time during the second year prior to the year for which the credit is allowed.

"Wages" means only that compensation, including amounts paid by an employer for benefit programs such as health insurance, retirement benefits, life insurance, bonus payments and employee prizes or awards the value of which are not normally includable in periodic wage payments, paid to or for the benefit of an employee.

6. (New section) The Commissioner of Human Services shall take such actions as are necessary to effectuate the provisions of section 5 of P.L. , c. (C )(pending before the Legislature as this bill). The commissioner shall report the following information to the Division of Taxation in the Department of the Treasury and to the employer of a person hired in accordance with the provisions of that section no later than January 31 of each year: the person's name and social security number, the employer's name and tax identification number, and the number of full months of the person's employment for which the employer is entitled to a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). The commissioner shall also prepare an annual statistical report for transmission to the Governor and the Legislature on the results of the tax credit with respect to numbers of public assistance recipients hired and their duration of employment.

7. (New section) The Commissioner of Human Services shall develop and implement a public assistance recipient employer subsidy plan no later than one year after the effective date of this act, subject to federal approval. The plan shall set forth the most cost-effective means for providing a subsidy to a private-sector employer to cover the cost of wages paid to a recipient of benefits under the program of aid to families with dependent children established pursuant to P.L.1959, c.86 (C.44:10-1 et seq.) or the program of general public assistance established pursuant to P.L.1947, c.156 (C.44:8-107 et seq.) whom the employer hires for full-time employment and to whom the employer provides on-the-job training and health insurance coverage for that recipient and the recipient's dependent child. Under this plan, the monies which would otherwise be used to pay the recipient's monthly cash grant shall be redirected from the recipient to the employer to cover the cost of the subsidy for a period of one year after the recipient commences employment. The subsidy plan shall be designed to ensure that the recipient hired shall receive an amount in wages which is at least equal to the amount of the monthly cash grant which the recipient would have otherwise received. The cost of implementing the subsidy plan shall not exceed the cost which would otherwise be incurred by the Department of Human Services to pay benefits pursuant to P.L.1959, c.86 (C.44:10-1 et seq.) or P.L.1947, c.156 (C.44:8-107 et seq.).

8. Section 4 of P.L.1991, c.523 (C.44:10-22) is amended to read as follows:

4. a. The Family Development Initiative is established in the Division of [Economic Assistance] Family Development of the Department of Human Services as the JOBS program for New Jersey in accordance with the requirements of the federal job opportunities and basic skills training program established pursuant to the federal "Family Support Act of 1988," Pub.L.100-485. The objective of the Family Development Initiative is to enable recipients of aid to families with dependent children to secure permanent full-time unsubsidized jobs, preferably in the private sector, with wages and benefits that are adequate to support their families, and to ensure that these individuals and their family members obtain the necessary educational skills and vocational training, including higher education through both four-year and community colleges, as appropriate, to secure these kinds of jobs, in addition to other health-related, social, educational and vocational services that may be necessary to assist the family.

The commissioner shall initially establish the program in the three counties which have the largest numbers of recipients, during the first year of the operation of the program. During the two succeeding years, the commissioner shall phase in the program in the remaining counties Statewide. As the program is implemented in each county, the fiscal and personnel resources of State, county and municipal government agencies which are being utilized by the REACH program established pursuant to P.L.1987, c.282 (C.44:10-9 et seq.) shall be transferred to the program, and the REACH program shall be terminated in that county.

b. During the first year of the operation of the program, the commissioner shall also establish a demonstration project to provide the same services to recipients of general public assistance in accordance with the provisions of section 8 of P.L.1947, c.156 (C.44:8-114) in a city of the second class in a county of the second class which houses the State capitol.

c. The commissioner shall also establish a mandatory community service component of the program for able-bodied recipients of benefits under the program of aid to families with dependent children and general public assistance who are unable to secure employment and are not attending school or vocational classes. This component shall include both full-time and part-time work, as determined appropriate by the commissioner, on behalf of State, county and local government agencies and nonprofit entities, and shall provide supportive services in accordance with the provisions of subsection g. of section 7 of P.L.1991, c.523 (C.44:10-25). A program participant who is not employed or attending school or vocational classes, and has received benefits for a period of two full months or more, shall be required to perform at least 25 hours of community service per week in order to be eligible for job training or other vocational-related services provided under the program; except that a program participant shall be exempted from this requirement if the commissioner determines that the participant is unable to secure appropriate child care for the participant's dependent child.

(cf: P.L.1991, c.523, s.4)

9. Section 7 of P.L.1991, c.523 (C.44:10-25) is amended to read as follows:

7. a. Services shall be provided to each participant in the program according to a family plan which includes a written contract. The contract shall be written in English or Spanish, according to the participant's needs. The contract shall be signed by the participant and a program representative who shall act as a case manager, advocate and broker of services for the participant and the participant's family, and shall set forth the specific mutual obligations of the participant and the program and a detailed plan for the participant and the participant's family. The family plan and contract, which shall explicitly state the services that the program will provide to the participant, shall be reviewed by both the participant and the program representative at least once a year and may be revised from time to time according to the needs of the participant, the participant's family and the program.

b. The services to be provided under the program shall include, but not be limited to: job development and placement in full-time permanent jobs, preferably in the private sector; counseling and vocational assessment; intensive remedial education, including instruction in English-as-a-second language; financial and other assistance for higher education, including four-year and community colleges, and for post-secondary vocational training programs; job search assistance; [community work experience;] employment skills training focused on a specific job; [and] on-the-job training in an employment setting; and mandatory community service in accordance with the provisions of subsection c. of section 4 of P.L.1991, c.523 (C.44:10-22).

c. The program shall be designed to ensure that each participant and member of the participant's family, as age appropriate, has attained the equivalent of a high school degree, before assigning that person to a vocational-related activity under the program. The commissioner may exempt a participant or member of the participant's family from this requirement if the commissioner determines that: based upon an assessment of the person's ability and aptitude, the person lacks a reasonable prospect of being able to successfully complete the academic requirements of a high school or equivalency program of study, in which case the commissioner shall refer the person to an alternative educational program as appropriate; or the person is gainfully employed or engaged in a job search or job training activity, in which case the program representative acting pursuant to the provisions of subsection a. of this section shall review the person's progress on a quarterly basis to assess whether the person's exemption from this requirement should continue.

d. The program shall assign one or more persons in each county which is participating in the program to be responsible, on a full-time basis, for job development for persons who have completed their educational or training activities under the program, with an emphasis on finding and creating permanent full-time unsubsidized jobs, preferably in the private sector, which offer wages and benefits that are adequate to support recipients and their families.

e. The commissioner, in consultation with the Commissioners of Commerce and Economic Development and Labor, and with the private industry councils established pursuant to section 18 of P.L.1989, c.293 (C.34:15C-15), shall develop a program to recruit private sector employers in each county to offer employment to persons who have completed their educational or training activities under the program.

f. The commissioner, in consultation with the [Chancellor of] Commission on Higher Education and the Commissioner of Education, shall, within the limits of available funds, provide financial assistance through the New Jersey Educational Opportunity Fund established pursuant to P.L.1968, c.142 (C.18A:71-28 et seq.) and other State student assistance programs, in an amount sufficient to cover all tuition and educational expenses, to each program participant or other family member who has been accepted into an institution of higher education, including public four-year colleges and community colleges, or a post-secondary vocational training program, according to standards established by the commissioner.

g. The program shall provide supportive services to a program participant as a last resort when no other source is available therefor and when these services are included in the family plan. The supportive services shall include, but not be limited to, one or more of the following:

(1) day care services for the participant's child, to be provided for up to [one year] two years if the participant becomes ineligible for financial assistance under P.L.1959, c.86 (C.44:10-1 et seq.) as a result of earned income and to be purchased through a voucher issued to the participant by the program, which may be used to obtain care at a State licensed child care center or school age child care program, or at a family day care home approved by the department, that accepts the voucher, or to be provided through an alternative child care arrangement agreed to by the participant and the program representative acting pursuant to the provisions of subsection a. of this section;

(2) transportation services, to be provided directly by the program or through an allowance or other means of subsidy by which the participant may purchase transportation; and

(3) health insurance coverage, to be provided by a participant's employer, or through a continuation of Medicaid benefits pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) for up to two years if the participant becomes ineligible for financial assistance under P.L.1959, c.86 (C.44:10-1 et seq.) as a result of earned income; or health care services to be provided by a school-based health care program.

(cf: P.L.1991, c.523, s.7)

10. Section 1 of P.L.1991, c.524 (C.30:1-1.1) is amended to read as follows:

1. a. The Commissioner of Human Services, in consultation with the Commissioners of Community Affairs, Health and Labor, shall establish and maintain on a 24-hour daily basis a comprehensive social services information toll-free telephone hotline service, operating through one of the existing telephone hotline services of the department. The hotline service shall use a computerized Statewide social services data bank to be developed by the Department of Human Services and shall include among its staff persons who speak English and Spanish. The hotline service shall receive and respond to calls from persons seeking information and referrals concerning agencies and programs which provide various social services, including but not limited to: child care, child abuse emergency response, job skills training, services for victims of domestic violence, alcohol and drug abuse, home health care, senior citizen programs, rental assistance, services for persons with developmental disabilities, mental health programs, emergency shelter assistance, family planning, legal services, assistance for runaways and services for the deaf and hearing impaired, as well as information about public assistance, Medicaid, Pharmaceutical Assistance to the Aged and Disabled, Lifeline, Hearing Aid Assistance for the Aged and Disabled, food stamps and home energy assistance. The hotline service shall also receive and initiate responsive action in regard to calls from persons reporting information about allegedly fraudulent receipt of public assistance benefits.

b. The Commissioner of Human Services, in conjunction with the Commissioners of Community Affairs, Health and Labor, shall take such actions as are necessary to consolidate existing State telephone hotline services into the comprehensive social services information toll-free telephone hotline service, and thereby eliminate duplicative telephone hotline services.

(cf: P.L.1991, c.524, s.1)

11. The Commissioner of Human Services shall request such waivers of federal regulations from the United States Secretary of Health and Human Services as are necessary to implement the provisions of this act.

12. The Commissioner of Human Services, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to effectuate the purposes of this act.

13. This act shall take effect immediately.

STATEMENT

This bill is intended to strengthen and expand upon the welfare reforms enacted during the 1991-92 legislative session by providing additional requirements and incentives to enable public assistance recipients to make the transition from welfare to work, as follows:

(1) The bill provides for a mandatory community service component under the Family Development Initiative (FDI) established pursuant to P.L.1991, c.523 (C.44:10-19 et seq.) for able-bodied recipients of aid to families with dependent children (AFDC) and general public assistance (GA) benefits who are unable to secure employment and are not attending school or vocational classes, and who have received AFDC or GA benefits for at least two full months;

(2) The bill increases the period of extended day care services for an FDI participant's child from one to two years after the participant becomes ineligible for AFDC benefits as a result of earned income (which is equivalent to the period of extended Medicaid coverage);

(3) The bill requires that an AFDC applicant or recipient, as a condition of eligibility for AFDC benefits for the applicant or recipient and the applicant's or recipient's dependent child, reside in a home maintained by, and have the AFDC benefits paid to, the applicant's or recipient's parent, legal guardian, or other adult relative, if the applicant or recipient is less than 18 years of age, has never married, and is pregnant or is caring for a dependent child, unless the commissioner determines that an exemption from this requirement would be in the best interest of the applicant or recipient and that person's dependent child;

(4) The bill imposes financial penalties on school-age AFDC recipients who fail to meet a requirement for regular school attendance without good cause as determined by the commissioner;

(5) The bill provides a corporation business tax credit for hiring new employees who are AFDC or GA recipients in an amount up to $1,200 in any taxable year, which credit is provided only if the hiring of the employee results in a net increase in the number of employees employed;

(6) The bill requires the Commissioner of Human Services to develop and implement a plan to pay subsidies to employers who hire public assistance recipients for full-time employment and provide on-the-job training and health insurance coverage, by redirecting to those employers the monies which would otherwise be paid out to the recipients as monthly benefit checks, to be used to pay employee wages instead; and

(7) The bill provides for a toll-free telephone hotline service in the Department of Human Services to receive and initiate responsive action in regard to calls from persons reporting information about allegedly fraudulent receipt of public assistance benefits.

The provisions of this bill should strengthen and support families, instill greater responsibility, promote education, and facilitate private-sector employment for public assistance recipients and their families who are seeking to make the transition from welfare dependency to economic self-sufficiency.

Designated the “Welfare to Work Act.”