Whereas, the Commonwealth of Massachusetts enacted a comprehensive welfare reform plan in 1995 and changed the name of its cash assistance program for families with children from Aid to Families with Dependent Children (AFDC) to Transitional Aid to Families with Dependent Children (TAFDC);

Whereas, in 1995, the Commonwealth received from the federal government various waivers from then-existing provisions of federal law governing the Aid to Families with Dependent Children (AFDC) program in order to be able to operate certain portions its 1995 welfare reform plan;

Whereas, in 1996, the United States government enacted a federal welfare reform bill known as the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) that eliminated the Aid to Families with Dependent Children (AFDC) program under which qualifying state expenditures were matched dollar for dollar by the federal government and replaced it with a federal block grant entitled Transitional Aid to Needy Families (TANF) under which state expenditures are no longer matched dollar for dollar;

Whereas, the Massachusetts basic TANF block grant is and since 1996 has been $459.4 million per year;

Whereas, in order to meet its TANF maintenance-of-effort obligation, as required to receive its full TANF block grant, Massachusetts must annually expend at least $358.95 million of state dollars on benefits or services for low-income families;

Whereas, under PRWORA, states such as Massachusetts with pre-existing AFDC waivers were allowed to continue to operate under such waivers to the extent that the provisions of their waivers were inconsistent with the otherwise applicable requirements of PRWORA;

Whereas, as a result of being able to continue to operate under its waivers, Massachusetts was able, without risk of federal financial penalties, to fund TAFDC cash assistance benefits in part with federal TANF funds while continuing to operate the welfare reform program enacted by the Commonwealth in 1995 and revised and updated in the intervening years;

Whereas, in 2005, the United States government is expected to reauthorize TANF block grants but not allow Massachusetts to continue to operate under its 1995 waivers beyond September 2005;

Whereas, the federal law reauthorizing TANF is expected to impose new, unfunded mandates on Massachusetts and other states to the extent that the state’s cash assistance benefits are paid out of a program funded in part with TANF;

Whereas, after September 2005, Massachusetts will be at risk of federal financial penalties if it continues to pay all TAFDC cash assistance benefits out of a program funded in part with TANF block grant dollars while continuing to operate the welfare reform program that the Legislature has determined is appropriate for Massachusetts;

Whereas, if Massachusetts retains state control over its cash assistance program and welfare reform policies it can avoid harm to the most vulnerable families in the Commonwealth;

Whereas, the federal government has not provided and is not expected to provide Massachusetts with adequate federal funds to offset the substantial, additional expenditures that would be required if benefits for families with substantial, identified barriers to employment were paid in a program funded in whole or in part with TANF funds, including but not limited to additional expenditures for child care and employment support services;

Whereas, since 1996, Massachusetts has funded TAFDC cash assistance benefits for those families not subject to work requirements and time limits under state law with state maintenance-of-effort funds rather than federal TANF funds;

Whereas, Massachusetts can continue to receive its full TANF block grant of $459.4 million and lawfully continue to operate its own welfare reform program without federal financial penalties if it continues to fund TAFDC cash assistance for certain families with state maintenance-of-effort funds rather than federal TANF funds;

Whereas, the TANF block grant can be used for a broad range of non-cash assistance programs and services for needy families, including but not limited to child care, employment services, education services, services for infants and pregnant women, pregnancy prevention services, teen living programs, homelessness prevention services, emergency shelter, and the earned income credit for low-income families;

Whereas, Massachusetts has historically funded less than half of the TAFDC account with TANF block grant funds, while funding the remainder of the TAFDC account with state dollars;

Whereas, Massachusetts has historically counted toward its TANF maintenance-of-effort obligation approximately $200 million per year of state spending for emergency shelter, employment services, education services, teen living programs, Department of Transitional Assistance administration, the earned income credit, child care and other services for low-income families;

Whereas, by hereafter funding TAFDC cash assistance benefits for certain families with separate state dollars and using the freed up TANF dollars to pay for other services for needy families that would otherwise be state funded, Massachusetts will be able to continue to operate the welfare reform policies of its choice without any overall increase in state expenditures and without any loss of federal TANF funds;

Whereas, the Massachusetts welfare reform program should be updated to provide more incentives and supports to enable parents to engage in work-related activities;

Therefore, be it enacted, as follows:

SECTION 1. Notwithstanding any general or special law to contrary, in order to preserve the right of the state to establish and implement its own welfare reform policies without risk of federal penalties or reduction of the federal block grant, it is the policy of the Commonwealth of Massachusetts to fund benefits paid to certain recipients pursuant to the Transitional Aid to Families with Dependent Children (TAFDC) program, established by chapter 118 of the General Laws, as modified by sections 110 through 143 of chapter 5 of the acts of 1995 and as most recently amended by St. 2004, c. 149, sections 218 and 219, through a separate program that is funded only with state dollars and shall be known as state-funded TAFDC.  Families who shall receive state-funded TAFDC benefits in the separate state program shall include those who would lower the state’s federal work participation rate if they received benefits in a program funded in whole or in part with federal funds from the Transitional Assistance for Needy Families (TANF) block grant, including, but not necessarily limited to, such families qualifying as exempt pursuant to St. 1995, c. 5, section 110(e),  such families in which the parent is engaging in work activities that satisfy the requirements of state law, and such families who have good cause as defined by state law for not satisfying work requirements. Notwithstanding any general or special law to the contrary, persons for whom federal funds may not be used to provide benefits pursuant to 8 U.S.C.  section 1611, 1612 or 1613 but who are qualified noncitizens as defined in 8 U.S.C.  section 1641 or otherwise permanently residing in the United States under color of law shall receive state-funded TAFDC benefits and shall be assigned to the separate TAFDC program if they would lower the state’s work participation rate if they received benefits in a program funded in whole or in part with federal TANF funds. The Comptroller, the Executive Office of Health and Human Services, the Department of Transitional Assistance and any other responsible state agencies are hereby authorized and directed to allocate state and federal dollars in a manner to accomplish this policy. Notwithstanding the foregoing, to the extent that doing so aids the state in meeting federal work participation rates and increases flexibility in allocating TANF block grant funds, the first month of receipt of what would otherwise be TAFDC cash assistance shall be designated a one-month TAFDC assessment program, in which benefits equal to TAFDC benefits shall be paid with federal TANF block grant funds.

SECTION 2. Subsection (a) of section 110 of chapter 5 of the acts of 1995, as amended, is hereby amended by striking out, in the definition of “Assistance” the words “funded jointly by the commonwealth and the federal government”.

SECTION 3. Subsection (b) of said section 110 is hereby amended by striking out the words “Subject to federal approval of a waiver”.

SECTION 4.  Subsection (c) of said section 110 is hereby amended by striking out the words “Subject to federal approval of a waiver,”and further amended by striking out the second paragraph and inserting in place thereof the following new paragraph:

In cases involving a child born after the child of record, the right to receive child support on behalf of such child need not be assigned and the first ninety dollars per month of said child support received on behalf of such after-born child shall not count as income to the family in determining the amount of assistance to the family.

SECTION 5. Said section 110 is hereby further amended by striking out subsection (d) and inserting in place thereof the following new subsection:--

            (d) The department shall establish levels of assistance that vary according to whether families qualify for the exempt categories of assistance established in subsection (e). Families of comparable size and financial circumstances that are determined to qualify for said exempt categories of assistance shall be awarded a higher standard of payment than the assistance awarded to families not so qualifying. The lower payment standard shall be established at a level 2 and 3/4 percent below the level in effect for exempt families of comparable size and financial circumstances. Said lower payment standard shall not be effective unless the earnings disregard established pursuant to subsection (g) is also effective.

SECTION 6. Subsection (f) of said section 110 is hereby amended by striking out the words “Subject to the commonwealth’s receiving a federal waiver”.

SECTION 7.  Said section 110 is hereby amended by striking out subsection (g) and inserting in place thereof the following:-

            A recipient or an applicant for transitional aid to families with dependent children benefits, whether or not exempt pursuant to subsection (e), shall be eligible to have thirty dollars and one-half of the remaining gross earned income, after work-related expenses but before dependent care deductions, disregarded for the entire period that any such recipient is eligible for assistance.  Prior to a recipient becoming subject to the work requirement pursuant to subsection (j) and prior to development of an employment development plan or a family well-being plan pursuant to subsection (h), the department shall explain the earnings disregards and other work supports, such as child care, transportation subsidies, and the state and federal earned income credits, to the recipient and shall provide sample calculations showing the effect of various levels of earned income, including earned income credits, on cash assistance and other benefits.

            Aid shall be provided to a two parent family that includes a needy child and meets the generally applicable financial eligibility requirements regardless of whether the principal wage earner of such family is employed for one hundred hours a month or more.

SECTION 8.  Subsection (h) of said section 110 is hereby amended by striking out the words “Volunteers shall be given first priority for participation in all such program components. If the program availability level exceeds the number of volunteers for a program component, the department shall fill the available slots based on department and federal regulations and the employment development plan of a recipient”and inserting in place thereof the following:-

Recipients who are exempt pursuant to subsection (e) shall be afforded an equal right to participate in all program components and shall be informed by the department of such right. Available program slots shall be filled on a first-come, first-serve basis.

SECTION 9. Said subsection (h) is hereby further amended by striking out the last paragraph and inserting in place thereof the following new paragraph:–

            It shall be the responsibility of the recipient to fulfill the obligations of the employment development plan, subject to good cause pursuant to subsection (j) and contingent upon the provision of needed services or supports as indicated in such plan or identified by the assessment. The employment development plan may require mandatory community service to satisfy the work requirement pursuant to subsection (j) if the recipient has failed more than once to meet said requirement, without good cause, as defined pursuant to subsection (j). Failure by the recipient on more than one occasion to participate in the community service program once mandated to do so, absent good cause pursuant to subsection (j), shall result in the termination of assistance to the recipient, subject to review by the commissioner. Recipients who fail to adhere to the obligations set forth in their employment development plan and experience a reduction of family income due to a reduction of benefits which, in turn, places their children at risk shall be required to meet with their case worker for reassessment.

SECTION 10. Said subsection (h) is hereby further amended by inserting at the end the following new paragraphs:-

            With respect to recipients not qualifying as exempt pursuant to the provisions of subsection (e), the employment development plan shall be the plan used to satisfy any universal or full engagement or family self-sufficiency plan requirement, so-called, imposed by federal law, including any federal requirement to assess the skills, work experience, employability, and barriers to employment of each adult or teen-parent recipient. With respect to recipients who are exempt pursuant to the provisions of subsection (e), the department is authorized to develop, with the involvement of the recipient, and after an in-depth assessment of the recipient’s skills, work experience, employability, and barriers to employment, a family well-being plan to assist the recipient in improving the well-being of the recipient and her or his children, in taking steps to address barriers to employment or educational advancement faced by the recipient, including lack of education or job skills, and in preparing for employment. Such plan shall be used to satisfy any universal or full engagement or family self-sufficiency plan requirement, so-called, imposed by federal law. Participation in activities in a family well-being plan may be verified by a written statement from the recipient. Recipients who do not meet the terms of a family well-being plan may be required to meet with a worker designated by the department for reassessment but may not otherwise be sanctioned or penalized.

            In developing such an employment development or family well-being plan with an individual applicant or recipient, the department shall emphasize the opportunities that are available to the individual and allow the individual to determine which activities or services are appropriate for her or him and her or his children and, therefore, should be included in the plan, provided that employment development plans for nonexempt applicants and recipients must include activities that satisfy the work requirement pursuant to subjection (j).  The department shall also take into account the availability or lack thereof of affordable and reliable transportation, of appropriate child care and of appropriate health care or other services to which the department proposes to refer the applicant or recipient. The department shall ensure that any activity or service to which it refers an applicant or recipient who is a person with a disability or whose family includes a person with a disability provides equal access and reasonable modifications and accommodations as necessary to comply with all applicable state and federal laws against discrimination against persons with disabilities. The department shall also ensure that any activity or service to which it refers an applicant or recipient who is a person of limited English proficiency provides equal access and necessary bilingual services in compliance will all applicable state and federal civil rights laws.

SECTION 11. Subsection (i) of said section 110 is hereby amended by striking out the words “The department shall seek a federal waiver of the so-called “grandparent deeming”rule as described in 42 U.S.C. 606, et seq., to provide that” and further amended by striking out the words “Subject to the commonwealth’s obtaining said waiver.”

SECTION 12. Subsection (j) of said section 110, as most recently amended by Sections 218 and 219 of c. 149 of the acts of 2004, is hereby further amended by striking out the first two paragraphs and inserting in place thereof the following new paragraphs:-

            The department shall administer a program, to be known as the work program, for families that are not exempt under subsection (e) but have received assistance from the program of transitional aid to families with dependent children or any one-month transitional aid to families with dependent children assessment program for a total of 60 days during which they were not exempt pursuant to subsection (e). The program shall require that an adult recipient who is not exempt shall engage in 24 hours of core work activities each week. The adults in a two-parent family in which neither parent is exempt shall be required to engage in a combined total of 48 hours of core work activities each week.

            The 24 hour core work activity requirement may be met by working in a job for which compensation is paid; by a parent or head of household who is in emergency shelter and complying with housing search requirements; by working full time in the full employment program established by subsection (l); by participating in community service pursuant to subsection (k); or by participating in education and training programs that would have met the requirements of the federal Personal Responsibility and Work Opportunity Reconciliation Act, including activities required or necessary for the successful completion of any such education or training program; by participating in any other activities countable as a core work activity under federal law; or by participating in a combination of any of these activities.

            To the extent necessary to satisfy the state’s federal work participation rate after taking into account any applicable credits, recipients subject to the work program requirement may, on or after October 1, 2006, also be required to select and participate in additional qualified activities for the number of hours each week necessary for the family to count fully toward such federal work participation rate. Qualified activities shall be broadly construed to include all activities countable as such under federal law, including any activities to remove barriers to employment or to promote family well-being. A recipient shall be allowed to vary his or her qualified activities from week to week. Participation in qualified activities may be verified by a written statement from the recipient.   

            In referring an applicant or recipient to any core or qualified work activity under this subsection, the department shall comply with the requirements of subsection (h) related to development of an employment development plan. At the discretion of the commissioner, recipients subject to the work requirement who fail, without good cause, to satisfy said work requirement shall not receive assistance.

SECTION 13. Said subsection (j) of said section 110, as most recently amended, is hereby further amended by striking out the words "the required" wherever they appear and inserting in place thereof, in each instance, the following words:- the required core.

SECTION 14. Subsection (l) of said section 110 is hereby amended by striking out the words “Subject to federal approval and federal financial participation”.

SECTION 15. Said chapter 5 of said acts of 1995 is hereby amended by striking out Section 111 and inserting in place thereof the following new section:—

Notwithstanding any general or special law or any rule or regulation to the contrary, persons collecting public assistance from programs administered by the department of transitional assistance who inherit any sum of money or receive a damage award or whose net winnings or payoff of any lottery or contest exceed $600 in cash or other monetary value, shall report said inheritance, winnings or damage award to the department within 10 days of collecting said excess amount or lump sum income, so-called. Upon any said person’s collection of any such value or amount in excess of $600, the department shall reduce the assistance granted to any such person by said amount in excess of $600. If at any time said excess amount exceeds said person’s monthly public assistance benefit, said assistance shall be suspended and no such public assistance shall be paid to said person until such time as the value of said monthly transitional assistance supplement equals the value of said excess amount. Notwithstanding the provisions of the preceding two sentences, up to $5,000 of such lump sum income shall be disregarded as income and excluded as an asset if within 30 days of its receipt, or within 30 days of being informed by the department of the terms of this section, whichever is later, it is deposited in a separate identifiable account at a financial institution, community development corporation or other non-profit agency approved by the department to establish and administer such financial accounts. Withdrawals from such an account during any period of assistance shall be counted as an asset unless the withdrawal is for one of the following purposes:
(a) Expenses for education or job training to attend an accredited or approved education or training institution;
(b) The purchase or repair of a home that is the applicant or recipient’s principal residence and/or of basic household necessities, such as beds, tables, chairs, appliances and cooking or eating utensils;
(c) The purchase or repair of a vehicle used for transportation to work, to attend an education or training program, or to transport a disabled family member;
(d) Capital to start a small business for any family member 18 years of age or older;
(e) Health care costs not covered by public or private insurance; or

(f) Obtaining or retaining housing by a family that is homeless or at imminent risk of homelessness.  Vehicles purchased pursuant to subsection (c) shall not be counted as assets in determining eligibility for said public assistance programs.

SECTION 16. Section 112 of chapter 5 of the acts of 1995 is hereby amended by striking out the words “Subject to federal approval of any necessary waivers,” and inserting in place thereof the following words:- Except to the extent prohibited by any federal or state law.

SECTION 17. Section 113 of chapter 5 of the acts of 1995, as amended, is hereby amended by striking out the words “Subject to federal approval of any necessary waivers”.

SECTION 18. Section 114 of said chapter 5 is hereby amended by striking out the words “Subject to federal approval of any necessary waivers”.

SECTION 19. Section 117 of said chapter 5 is hereby amended by striking out the words “Subject to federal approval of any necessary waivers”.

SECTION 20. Section 118 of said chapter 5 is hereby amended by striking out the words “Subject to federal approval of any necessary waivers” and inserting place thereof the following words:- Except to the extent prohibited by any federal or state law.

SECTION 21. Section 121 of said chapter 5 is hereby amended by striking out the words “Subject to the commonwealth receiving a federal waiver”.

SECTION 22. Section 122 of said chapter 5 is hereby amended by striking out the words “The department shall seek all waivers necessary to implement the provisions of this section.”

SECTION 23. Section 140 of said chapter 5 is hereby amended by striking out the first, third, fourth and fifth paragraphs.

SECTION 24. Chapter 5 of the acts of 1995 is further amended by striking out sections 141 and 142.

SECTION 25. Notwithstanding any general or special law to the contrary, and subject to appropriation, the department of transitional assistance shall develop and fund programs specifically designed to meet the special needs of parents with disabilities so as to provide equal opportunities to such parents, whether or not they are exempt pursuant to St. 1995, c. 5, section 110(e), to benefit from the Employment Services Program, so called. Parents with such exemptions who volunteer to participate in such programs or other Employment Services Program activities shall not be subject to a reduction in benefits if they are unable to fully or successfully participate in or complete such activities. Such programs shall include, but need not be limited to, programs that integrate basic education and English as a second language instruction with substantive skills training. Providers of such services will be reimbursed in accordance with criteria that primarily reward educational and skills advancement, as opposed to job placement, retention or advancement.

SECTION 26. Notwithstanding any general or special law to the contrary, in furtherance of the Commonwealth’s policy of providing positive incentives for recipients of transitional assistance benefits to engage in paid work, the department of transitional assistance is authorized not to apply a gross income test to determine financial eligibility, provided that it continues to apply the net income test, and, with respect to recipients who are engaged in paid work for 30 or more hours per week, to suspend the running of the time limit established by subsection (f) of section 110 of chapter 5 of the acts of 1995, as amended. Within 6 months of exercising some or all of the authority conferred by this section, the department shall file with the chairs of the joint committee on human services and elderly affairs a report analyzing the effect of the policies adopted pursuant to this section and shall update such report on an annual basis thereafter. 

SECTION 27. Notwithstanding any general or special law to the contrary, on or before October 1, 2005, the department of transitional assistance shall file a revised plan pursuant to 42 U.S.C. § 602 that reflects the policies established by this act.

SECTION 28. This act shall take effect on October 1, 2005.