Prepared by the North Dakota Legislative Council staff for the Welfare Reform Committee June 1997

STUDY OF THE MONITORING OF NORTH DAKOTA'S WELFARE REFORM IMPLEMENTATION, INCLUDING THE IMPLEMENTATION OF THE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES PROGRAM

STUDY DIRECTIVES

The committee has been assigned related study responsibilities as follows:Monitoring of Welfare Reform Implementation - Section 31 of 1997 House Bill No. 1012 provides for a Legislative Council study of the monitoring of North Dakota's welfare reform implementation efforts to determine the effectiveness of welfare reform. Also, the section provides that the Department of Human Services and persons or parties conducting the review of welfare reform implementation efforts are to periodically report regarding the evaluation of welfare reform.

Attached as Appendix "A" is a copy of Section 31 of 1997 House Bill No. 1012.

Implementation of the Temporary Assistance for Needy Families (TANF) Program Study - Section 82 of 1997 House Bill No. 1226 provides for a Legislative Council study of the implementation of the TANF program. The study is to address the issues of:

• The simplification of all public work programs into a single system;
• Providing a work force preparation and placement program;
• Establishing performance-based outcome measures for all contractors;
• The caseload ratio established in North Dakota Century Code (NDCC) Section 50-09-20.1 (65 cases to one worker);
• The training and expertise of the managers administrating the training, education, employment, and management (TEEM) program; and
• The development of a tiered system of benefit support and incentives.

Attached as Appendix "B" is a copy of Section 82 of 1997 House Bill No. 1226.

Federal Waiver Terminations - North Dakota Century Code Section 50-06-01.8, as amended by 1997 House Bill No. 1226 (Sections 51 and 52), provides that subject to the approval of the Legislative Council, the Department of Human Services may terminate any waiver secured under Section 50-06-01.8(1) if necessary or desirable for the statewide implementation of the TEEM program. The Welfare Reform Committee has been assigned this responsibility by the Legislative Council.

Responsibilities Relating to the Revised Administration of the TANF Program - North Dakota Century Code Section 50-09-29, as created by Section 76 of House Bill No. 1226, provides the requirements for the Department of Human Services administration of the TANF program and provides exceptions to the administrative requirements including:

1. If the secretary of the United States Department of Health and Human Services determines that funds otherwise available for the TANF program would be reduced or eliminated if the department administered the program as provided for in Section 50-09-29(1), the department is to administer the program in a manner that avoids a reduction or loss (subsection 2);
2. If the caseload of households provided assistance exceeds projections provided to the 55th Legislative Assembly, the department, subject to the approval of the Legislative Council, is to administer the TANF program in a manner that avoids spending or committing all funds appropriated prior to June 30, 1999 (subsection 3);
3. If the Department of Human Services determines that an insufficient worker opportunity exists, due to increases in the unemployment rate, to participate in work activities, the department may administer the TANF program in a different manner, subject to the approval of the Legislative Council (subsection 5);
4. If the department determines that administration of the TANF program causes otherwise eligible individuals to become a charge of the counties under NDCC Chapter 50-01, the department may administer the program in a manner that avoids that result, subject to the approval of the Legislative Council (subsection 6); and
5. If projected rates of expenditures for operation of the TANF program indicate the appropriations will be expended or committed prior to June 30, 1999, the department shall administer the TANF program in a manner that avoids that result, subject to the approval of the Legislative Council.

Attached as Appendix "C" is a copy of 1997 House Bill No. 1226.

1997 LEGISLATIVE ASSEMBLY

House Bill No. 1012

The 1997 Legislative Assembly passed House Bill No. 1012 providing the funding for the Department of Human Services. The bill contains $425,158 of federal funds for an evaluation of the state's implementation of the TANF program by an outside consultant. The bill also appropriates approximately $52 million of federal moneys from the TANF block grant, or approximately $26 million per year.

House Bill No. 1226

House Bill No. 1226 passed by the 1997 Legislative Assembly provides for the administration of the TANF program and welfare reform efforts. The following highlights some of the significant sections included in the bill:

• Section 6 allows the court, in cases where an individual owes past due child support, to require the individual to pay past due support in accordance with a plan approved by the court, participate in work activities, and participate in treatment for mental illness or drug or alcohol dependency.
• Section 7 allows the court to suspend recreational licenses for nonpayment of child support (NDCC Section 14-08.1-06).
• Section 9 establishes a state disbursement unit for the collection and disbursement of payments of child support.
• Section 10 modifies existing child support orders and requirements after September 30, 1998, to provide for payments to the state disbursement unit.
• Section 12 expands the information reporting requirements in child support payment orders to include Social Security number, addresses, telephone number, motor vehicle operator's license number, and employer's name, address, and telephone number.
• Section 14 provides for changes to the required periodic review of child support orders.
• Section 17 provides that child support orders for a minor child include a provision for health insurance coverage.
• Section 18 relates to employer responsibilities to permit enrollment of a child under family health insurance coverage.
• Section 33 requires a court, in a pretrial proceeding, to order child support to be paid if there is evidence of paternity pending a final determination of paternity. If the final determination of paternity results in the nonexistence of a father and child relationship, the father may seek reimbursement from the department for any child support unnecessarily paid.
• Section 46 allows the Department of Human Services to issue executions against the property of a child support debtor for child support arrearages greater than six times the monthly child support obligation.
• Section 47 establishes a new chapter to NDCC Title 34 relating to the state directory of new hires and the employer reporting of new hires to the Department of Human Services.
• Section 48 establishes a new chapter to NDCC Title 35 relating to liens on vehicles, vessels, accounts at financial institutions, and other personal property.
• Section 49 requires applicants to provide Social Security numbers before receiving professional or occupational licenses.
• Sections 51 and 52 relate to the department seeking waivers for the TEEM and TANF programs and the termination of any waivers received, subject to Legislative Council approval, if necessary or desirable for the statewide implementation of the TEEM program.
• Section 56 provides for the establishment of a state case registry of child support cases in the statewide automated data processing system.
• Section 57 provides for the required uses of the statewide automated processing system.
• Section 61 relates to the administrative enforcement of interstate child support cases.
• Section 63 allows the state child support agency, in the administration of the child support program under Title IV-D, to secure assets by issuing writs of execution to seize property from financial institutions, public and private retirement funds, and other benefits.
• Sections 66 and 67 relate to the appropriation of county funds and local expenses of administration of the TANF program (NDCC Section 50-09-20).
• Section 68 relates to reimbursement by the state for county administrative costs of the TANF program and child care assistance program.
• Section 69 amends NDCC Section 50-09-21 to provide that prior to January 1, 1998, the counties will pay 5.2 percent of the statewide program costs of TANF, child care assistance program, and employment and training programs. Section 70 amends Section 50-09-21 to provide that after January 1, 1998, counties will pay one-fourth of the amount expended in this state in excess of the federal funds for payments for children approved and granted foster care for children or subsidized adoption. Each county's share is to be calculated based upon a formula established by the department through consultation with county representatives. The formula is to be based on the most recent census data of the number of youth in each county, with consideration of recent expenditures for foster care in each county.
• Section 73 provides for the transition to the TEEM program and provides that beginning January 1, 1998, the state agency is to convert TANF cases previously administered in the form of AFDC cases to administration in the form of the TEEM program. After July 1, 1998, the state agency is to supervise and direct county administration of all TANF families in the form of the TEEM program.
• Section 74 is effective January 1, 1998, and details the programs funded at the state's expense, including child care assistance, employment and training programs, and TANF benefits.
• Section 76 provides requirements for the Department of Human Services administration of the TANF program, contained in NDCC Section 50-09-29 and attached as Appendix "D".
• Section 83 provides for the establishment of a task force to implement the goals and programs provided for in subdivisions j, k, o, and aa of Section 76 of the Act. The department is to establish a statewide task force including representatives of all relevant parties, including two members of the Legislative Assembly appointed by the chairman of the Legislative Council. The subdivisions relate to out-of-wedlock pregnancies (j), education and training on the problems of statutory rape (k), domestic violence victims (o), and pre-pregnancy family planning services in the TEEM assessment (aa).
• Section 84 provides for the transfer of responsibilities from the clerks of courts to the state disbursement unit by providing intent that from July 1, 1997, to April 1, 1999, the clerks of court and the department share responsibilities and that the department prepare schedules for the transfer of specific responsibilities on a county-by-county and case-by-case basis.

PREVIOUS LEGISLATIVE COUNCIL STUDIES

1995-96 Budget Committee on Human Services

Pursuant to 1995 Senate Bill No. 2035, the Budget Committee on Human Services monitored the Department of Human Services implementation of North Dakota's welfare reform demonstration project during the 1995-96 interim. The bill required the Department of Human Services to seek federal authorization for a welfare reform demonstration project.

TEEM Project

The Department of Human Services provided status reports at each of the committee's meetings regarding the welfare reform demonstration project and the TEEM project. The TEEM project combines benefits under the state's assistance to families with dependent children (AFDC), food stamps, and fuel assistance programs. In addition, TEEM emphasizes employment as a means of attaining self-sufficiency, strengthens the family structure, and emphasizes the responsibility of both parents by improving child support collections. The TEEM project was approved by federal agencies on September 28, 1995, and was planned to be implemented on a phased-in basis in 11 counties by January 1997. The demonstration counties are Adams, Cass, Morton, Ransom, Richland, Sargent, Stark, Steele, Stutsman, Traill, and Williams.

Attached as Appendix "E" is a copy of a Department of Human Services summary of the TEEM project provided during the 1997 Legislative Assembly.

TANF Block Grant

The Department of Human Services also reported to the committee on the status of federal welfare reform. The committee learned Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, on August 22, 1996, which provides the TANF and child care block grants. The TANF block grant replaces the current AFDC program, allows the state to develop its assistance program, and provides North Dakota approximately $26.4 million annually. The legislation includes:

• Requiring a state plan by July 1, 1997;
• A 15 percent cap on state administrative costs;
• Requiring that the legislature appropriate the state's block grant funds;
• Requiring an 80 percent maintenance of effort based on state spending for fiscal year 1994;
• Allowing transfers of block grant moneys of up to 30 percent to the social services block grant and up to 10 percent to the child care block grant;
• Requiring work participation;
• Providing sanctions and penalties against states for failing to meet work participation rates;
• Requiring states to implement child support enforcement requirements; and
• Limiting individual receipt of welfare benefits to a five-year time period.

Attached as Appendix "F" is a Department of Human Services summary of the TANF requirements presented during the 1997 Legislative Assembly.

1993-94 Budget Committee on Human Services

The 1993-94 Budget Committee on Human Services conducted a welfare reform study pursuant to Senate Concurrent Resolution Nos. 4010 and 4067 which resulted in the Department of Human Services submitting a proposal for a welfare reform demonstration project to the United States Department of Health and Human Services entitled the TEEM project.

The committee also recommended two bills, passed by the 1995 Legislative Assembly, to increase child support collections--House Bill No. 1031 to allow the court to suspend a motor vehicle operator's license for nonpayment of child support when the obligor is $1,000 or more in arrears and House Bill No. 1032 establishing a voluntary acknowledgment of paternity procedure to establish paternity early.

STUDY PLAN

Following is a study plan the committee may want to consider as it conducts its study relating to welfare reform implementation:

1. Receive periodic reports from the Department of Human Services regarding the implementation of 1997 House Bill No. 1226 regarding the state's welfare reform effort and the administration of the TANF program, including information on caseloads, unemployment rates and other relevant statistics, TANF expenditure status, the availability of client employment opportunities, and any revisions necessary to the administration of the TANF program.
2. Receive periodic reports from the Department of Human Services and the consultant selected to conduct a review of the state's implementation of its welfare reform efforts.
3. Receive reports by the Department of Human Services on the need for federal waiver terminations that may be necessary for the statewide implementation of the TEEM program.
4. Receive testimony from interested persons, including representatives of the county social service boards, regarding the implementation of the TANF program and the effectiveness of the state welfare reform efforts.
5. Develop recommendations and any related legislation considered necessary to implement the recommendations.
6. Prepare a final report for submission to the Legislative Council.

ATTACH:6

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