HB-5445, As Passed House, December 1, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 5445

     A bill to amend 1939 PA 280, entitled

"The social welfare act,"

by amending section 57a (MCL 400.57a), as amended by 1999 PA 26.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 57a. (1) The  family independence agency  department

shall establish and administer the family independence program to

provide assistance to families who are making efforts to achieve

independence.

     (2) The  family independence agency  department shall

administer the family independence program to accomplish all of the

following:

     (a) Provide financial support to eligible families while they

pursue self-improvement activities and engage in efforts to become

financially independent.

     (b) Ensure that recipients who are minor parents live in

adult-supervised households in order to reduce long-term dependency

on financial assistance.

     (c) Assist families in determining and overcoming the barriers

preventing them from achieving financial independence.

     (d) Ensure that families pursue other sources of support

available to them.

     (3) The  family independence agency  department shall

establish income and asset levels for eligibility, types of income

and assets to be considered in making eligibility determinations,

payment standards, composition of the program group and the family

independence assistance group, program budgeting and accounting

methods, and client reporting requirements to meet the following

goals:

     (a) Efficient, fair, cost-effective administration of the

family independence program.

     (b) Provision of family independence assistance to families

willing to work toward eventual self-sufficiency.

     (4) At the time the department determines an individual is

eligible to receive family independence assistance under this act,

the department shall determine whether that individual is eligible

to participate in the work first program or if the individual is

exempt from work first participation under section 57f. If the

department determines that an individual is eligible to participate

in the work first program, family independence assistance shall be

paid to that individual for not longer than a cumulative total of

48 months during that individual's lifetime. Any month in which the

unemployment rate in the metropolitan statistical area in which the

individual resides is higher than 10% shall not be counted toward

the cumulative total of 48 months in a lifetime for family

independence assistance. Any month in which an individual is

temporarily deferred from work first participation shall not be

counted toward the cumulative total of 48 months in a lifetime for

family independence assistance.

     (5) Not later than 90 days after the effective date of the

amendatory act that added this subsection, the department shall

determine the amount of months each family independence assistance

recipient who is not exempt from work first participation under

section 57f has received family independence assistance. If the

department determines that a family independence assistance

recipient has received family independence assistance for a

cumulative total of 36 months or more as of the effective date of

the amendatory act that added this subsection, that recipient is

eligible to receive family independence assistance for not more

than 1 year after the effective date of the amendatory act that

added this subsection.

     (6) The department shall reassess the recipient's eligibility

for family independence assistance not later than 24 months after

the date the application for family independence assistance was

approved.

(7)  (4) Not later than October 1, 2001, the  family

independence agency  department shall implement an automated finger

imaging system designed to prevent an individual from receiving

cash assistance, food stamps, or both under more than 1 name.

Beginning at the effective date of the establishment and

implementation of the finger imaging system, an individual applying

for cash assistance, food stamps, or both must provide the  family

independence agency  department with an automated finger image or

images as a condition of eligibility. Finger imaging obtained

pursuant to  under this subsection shall be used only for the

purposes of reducing fraud in obtaining public benefits or

assistance under this act.

(8)  (5) The  family independence agency  department shall

establish the automated finger image system that, at a minimum,

includes the following:

     (a) Confidentiality of the automated finger image records

taken  pursuant  according to this section.

     (b) A system for administrative appeal of a matter relating to

the taking or verification of an individual's automated finger

image.

     (c) A requirement to exempt children from providing the

automated finger image unless there is a reasonable suspicion that

the family group is committing fraud. For the purpose of this

subdivision, "family group" means a family and all those

individuals living with a family who apply for or receive cash

assistance, food stamps, or both.

     (d) A requirement to exempt individuals from whom the

automated finger image technology is unable to obtain an accurate

finger image.

     (e) A requirement to exempt patients placed in nursing homes

from providing the automated finger image.

     (f) In addition to the population groups named in subdivisions

(c), (d), and (e), authority to exempt certain other population

groups from providing the automated finger image including, but not

limited to, homebound recipients.

(9)  (6) The  family independence agency  department shall

remove an individual's finger image from the department's file if

the individual has not received benefits or assistance from the

family independence agency  department within the previous 12

months.

(10)  (7) The  family independence agency  department may

negotiate and enter into a compact or reciprocal agreement with

another state department, the federal government, an agency of the

federal government, or an agency of another state for the purpose

of implementing and administering the finger imaging provisions of

this section as long as the compact or reciprocal agreement is not

inconsistent with the limitations of use and access contained in

subsection  (4)  (7).

(11)  (8) The  family independence agency  department shall

conduct  semi-annual  semiannual security reviews to monitor the

automated finger imaging system to insure that all of the following

occur:

     (a) All records maintained as part of the system are accurate

and complete.

     (b) Effective software and hardware designs have been

instituted with security features to prevent unauthorized access to

records.

     (c) Access to record information is restricted to authorized

personnel.

     (d) System and operational programs are used that will

prohibit inquiry, record updates, or destruction of records from a

terminal other than automated finger imaging system terminals that

are designated to permit inquiry, record updates, or destruction of

records.

     (e) System and operational programs are used to detect and

report all unauthorized attempts to penetrate an automated finger

imaging system, program, or file.

(12)  (9) Beginning December 31 of the first year the

automated finger imaging system has been fully implemented, the

family independence agency  department shall compile and report

annually to the senate and house committees having jurisdiction

over  family independence agency  department matters the following

information concerning the operation of the automated finger

imaging system:

     (a) An analysis of the costs and savings of the system

including, but not limited to, administrative costs, operation

costs, and actual savings due to confirmed fraud and fraud

deterrence.

     (b) The number of individuals who have applied for assistance

under more than 1 name.

     (c) The number of individuals refusing to provide a finger

image and the reasons for the refusal.

     (d) A detailed summary of the results of reviews required by

subsection  (8)  (11).

(13)  (10) Except as necessary to carry out a compact or

agreement under subsection  (7)  (10) or unless otherwise required

by law, the  family independence agency  department shall not sell,

transfer, or release information identifying an individual named in

the automated finger imaging system record to a third person,

including, but not limited to, another state department or agency.

(14)  (11) A person shall not disclose information from the

automated finger imaging system record in a manner that is not

authorized by law or rule. A violation of this subsection is a

misdemeanor punishable by imprisonment for not more than 93 days or

a fine of not more than $500.00, or both.

(15)  (12) At the time an individual applies for cash

assistance, food stamps, or both, the  family independence agency

department shall inform the individual of all of the following:

     (a) The requirement to allow the department to take a finger

image from the individual.

     (b) The fact that the finger image may be compared to the

finger images of other benefit recipients to prevent duplicate

participation.

     (c) The fact that the department is prohibited by law from

using the finger image for a different purpose.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) House Bill No. 5438.

     (b) House Bill No. 5439.

     (c) House Bill No. 5440.

     (d) House Bill No. 5441.

     (e) House Bill No. 5442.

     (f) House Bill No. 5443.

     (g) House Bill No. 5444.

     (h) House Bill No. 5446.