Assigned to PSHS                                                                                                                            FOR COMMITTEE

ARIZONA STATE SENATE

Forty-eighth Legislature, First Regular Session

FACT SHEET FOR H.B. 2247

TANF; diversion program; sanctions

Purpose

            Makes changes to the Temporary Assistance for Needy Families grant diversion program.

Background

            The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 (PL 104-193) reformed the welfare system in the United States.  PRWORA combined federal funding for Aid to Families with Dependent Children (AFDC), Job Opportunities and Basic Skills (JOBS) and Emergency Assistance programs into a single block grant titled Temporary Assistance for Needy Families (TANF).  Under TANF expenditure requirements, states must require work participation, set time limits for assistance, improve child support enforcement, encourage parental responsibility and collect data on performance outcomes.  States may receive financial bonuses for success in achieving goals, and financial penalties are imposed if requirements are not met. 

            Arizona receives in excess of $200 million in TANF funds annually and uses the funds for multiple programs, including cash assistance, programs for hunger and homelessness, domestic violence prevention, adoption services, foster care, child protective services programs, child care assistance and employment services.  The largest expenditure of TANF monies in Arizona is for the cash assistance program, which provides monthly financial assistance to families and is commonly referred to as “welfare” although it is one of many welfare programs.  The Department of Economic Security (DES) administers TANF cash assistance.  To be eligible for cash assistance, a family’s income must be less than 36 percent of the 1992 federal poverty level (A.R.S. § 46-207.01).

            Laws 1996, Chapter 193, established a grant diversion program (program) in which certain applicants who are eligible for long-term cash assistance, but who have only short-term needs, are granted once in a 12-month period an amount not more than three times the monthly amount of cash assistance for which the applicant qualifies, if the applicant finds the option the most appropriate means to self-sufficiency (A.R.S. § 46-298).  Laws 1996, Chapter 193, also required the Joint Legislative Budget Committee (JLBC) to review a report on the program submitted by DES and make a recommendation to continue or discontinue the program.

            There is no anticipated fiscal impact associated with this legislation.

Provisions

1. Specifies that the assessment of an applicant’s employability must include the consideration of the likelihood of the applicant obtaining full-time employment within 90 days of the initial application, instead of immediately.

2. States that an applicant for the program is eligible to receive DES employment services for 90 days from the initial application, to expedite employment placement.

3. Requires cash assistance recipients who do not comply with the work activities requirements to demonstrate compliance in order to continue benefit eligibility and to avoid sanctions.

4. Removes the requirement that DES consider housing and automobile expenses, repair or replacement of major household appliances, improvements to restore real property to a habitable condition and work related expenses when determining the amount of cash assistance.

5. Stipulates that a program recipient will receive a cash amount equal to, and not less than, three times the monthly amount of cash assistance for which the applicant qualifies.

6. Specifies that the report submitted to JLBC must be an annual report, submitted 90 days after the end of the state fiscal year beginning with FY 2007-2008, and must include:

a) the number of recipients provided services under the diversion option, instead of the number of applicants offered services.

b) the number of recipients who reapply for long-term cash assistance within 180 days after initially participating in the diversion program, instead of the number of applicants who reapply.

c) the number of recipients who obtained employment within 90 days of receiving assistance under the diversion option.

7. Removes the requirement that JLBC review the report and make a recommendation to the Legislature to continue or discontinue the program.

8. Makes technical and conforming changes.

9. Becomes effective on the general effective date.

House Action

HS                   1/25/07     DPA     8-0-0-2

3^rd Read           2/1/07                    54-2-4-0

Prepared by Senate Research

February 27, 2007

AO/jas