Social Welfare Reform Amendments of 1979

(Measure passed House, amended, roll call #634 (222-184))

Social Welfare Reform Amendments of 1979 - =Title I: Aid to Families with Dependent Children; Assistance to Meet Emergency Needs; Earned Income Credit= - Amends part A (Aid to Families with Dependent Children, hereinafter AFDC) of title IV of the Social Security Act to provide that in determining the income and resources of individuals claiming AFDC the following shall be disregarded in the case of any child or relative receiving AFDC: (1) the first $70 per month of earned income; (2) 20 percent of any self-employment earnings; (3) one-third of the amount of earned income not disregarded under clauses (1) or (2); (4) up to $160 per month in child care or as adjusted to reflect changes in the cost of such care; and (5) a certain amount of the total income as determined by a formula set forth in this Act.

Defines the term "income" for purposes of part A to include all income from whatever source. Specifies items which shall be excluded from income, including assistance which is based on need and is furnished by a State in order to augment AFDC.

Amends the AFDC program to permit States to pay reduced benefits in the case of an AFDC child living with a relative who is not legally responsible for such child by pro-rating the costs of shelter and utilities for such child among household members.

Repeals provisions of part A which: (1) require AFDC payments to be reduced by any unemployment compensation received by a child's parent; (2) require that training incentives and income derived from a special work project under the Work Incentive Program (WIN) be disregarded in determining eligibility under part A based on income; and (3) require that in determining an individual's needs, the additional expenses attributable to participation in the WIN program shall be taken into account.

Provides for the payment of reasonable work expenses, in addition to the incentive payment already authorized, under the WIN program. Excludes such work expenses and incentive payments from income under any Federal or federally assisted program.

Directs the Secretary of Health, Education, and Welfare to prescribe the types and maximum allowable amounts of financial resources which an eligible AFDC family may own. Stipulates that such maximum may be not less than $750 nor more than $1,750. Excludes from such resources, among other things: (1) one licensed vehicle but only such portion of the fair market value that is below $4,500; (2) a home; (3) burial plots; (4) household goods and personal effects; and (5) resources of which the cash value cannot be readily realized.

Prohibits the imposition of a lien against the property of any individual because of AFDC aid received.

Prohibits an individual from receiving AFDC benefits for specified periods if within 24 months of applying for benefits such individual disposed of property having an uncompensated value of more than $3,000 and which, if retained, would have caused such individual to be ineligible for benefits.

Substitutes the term "unemployed parent" for the term "unemployed father". Defines "unemployment" to mean earnings of less than $500 per month.

Repeals the requirement, in the case of a dependent child of an unemployed parent, that such parent must have been employed for at least six out of 13 work period quarters in the period ending one year prior to applying for benefits.

Stipulates that only the principle earner of a family need register for manpower services, training, and employment as a condition of eligibility for AFDC, but that aid shall not be denied if the principal earner is not registered and the other parent is registered.

Includes within the definition of AFDC, payments to a pregnant woman who, following a child's birth, would become eligible for AFDC.

Requires a State plan of AFDC to cover the caretaker relative of a dependent child with whom such child is living, and both the mother and father if the child is deprived by reason of the incapacity or unemployment of a parent.

Sets forth a formula for determining monthly AFDC payments based in part on a family's monthly cash needs standard or monthly payment standard. Directs each State to establish standards for a family with dependent children such that, for any family with no income other than AFDC payments each of the standards, when added to the value of the monthly allotment of food stamp coupons, will equal an amount that is not less than 60 percent, increasing to 65 percent on October 1, 1981, of the income poverty guidelines for a family with the same number of members as such family. Permits a a State to vary its monthly cash needs standard so as to take into account differences in the cost of living in different geographical regions of the State.

Directs the Secretary to conduct a study of the desirability and feasibility of: (1) raising the minimum benefit amount under the AFDC program; and (2) alternatives to the existing matching formulas under the AFDC program.

Defines the term "income poverty guidelines." Provides for the adjustment of such guidelines in accordance with changes in the Consumer Price Index.

Directs the Secretary to set forth the rights and responsibilities of AFDC applicants and recipients including, among others: (1) requiring a State to determine eligibility within 30 days of receiving an application; (2) the right of any family to a hearing to protest an agency determination; and (3) requiring a State to replace a lost or stolen check within five days.

Sets forth State plan requirement concerning: (1) the effective date of the application; (2) the period for determination of eligibility; (3) the time of the month at which payment must be made; and (4) an annual review of eligibility.

Permits an individual to refuse employment yet remain eligible for AFDC if acceptance of such employment would result in a reduction of such individual's income.

Requires a State, under part A of title IV, to provide assistance to meet emergency needs to an AFDC or low-income family with children faced with extraordinary expenses or needs caused by or arising from an accident, natural disaster or other unpredictable event.

Directs the Secretary of the Treasury to increase the Federal payment to a State, according to a specified formula, for AFDC payments in the case of a child deprived of parental support due to: (1) the death, absence, or incapacity of a parent; or (2) the unemployment of a parent.

Directs the Secretary to pay to a State for fiscal years 1982-1986 an amount equal to the excess of the State's allowable expenditures for AFDC if such expenditures exceed 95 percent of the States fiscal liability base. Provides for a declining proportion of the amount paid in FY 1986 to be paid to a State for FY's 1987 through 1989. Defines the terms "allowable expenditures for AFDC" and "fiscal liability base." Permits a State to increase its allowable expenditures for AFDC according to guidelines set forth in this Act.

Directs the Secretary of Health, Education, and Welfare to issue regulations pertaining to the administration of the aid to families with dependent children program.

Directs the Secretary of the Treasury to pay to a State, under part A: (1) 90 percent of the expenditures for development of mechanized claims processing and information retrieval systems to provide for the effective administration of the State plan under such part; and (2) 75 percent of State expenditures for the operation of such systems.

Authorizes the Secretary of Health, Education, and Welfare to grant funds to assist a State agency in meeting the cost of developing and implementing systems, techniques, or other innovative approaches designed to improve the administration of an AFDC plan. Stipulates that such funds will be available only to a State agency that demonstrates a substantial likelihood of achieving comprehensive improvements in the administration of a State plan.

Requires a State AFDC plan to provide for: (1) the recovery of aid incorrectly paid; (2) the payment of aid incorrectly denied or underpaid; and (3) the cooperation of all State agencies administering AFDC plans in reviewing case records and providing information to identify AFDC recipients who are receiving AFDC benefits in more than one State and benefits under any other federally supported program.

Amends part A (General Provisions) of title XI of the Social Security Act to direct the Secretary of Health, Education, and Welfare to develop measures for monitoring and assessing the performance, at least annually, of the effectiveness of the requirements for the approval of a State AFDC plan.

Sets forth amendments relating to incentive payments made to a State with a low rate of erroneous AFDC payments.

Prohibits the payment of aid for any month with respect to any dependent child if the amount of payment would be less than $10.00.

Authorizes the appropriation of $150,000,000 to be allocated among the States to assist them in initially implementing the amendments made by this Act.

Provides that no proposed regulation of the Secretary of Health, Education and Welfare implementing Title I shall be published in final form unless the Secretary has transmitted the proposed regulation to the House Ways and Means Committee and the Senate Finance Committee for a period of 60 days for review. Requires such regulation to: (1) be transmitted to the Congress at or before its publication in the Federal Register; and (2) not be published in final form if the Congress within the 60 day period adopts a concurrent resolution disapproving such regulation in whole or in part.

Provides that if the concurrent resolution disapproves of the proposed regulation only in part and specifies the portion or portions disapproved, the remaining portions may be published in final form.

Amends the Internal Revenue Code to provide that when determining whether an individual is self-supporting or supported by another individual, or is maintaining a household, any benefit provided under any public assistance program used for the support of the individual or of the maintenance of the household shall not be taken into account. Increases the tax credit allowed on earned income not in excess of $5,000.

Amends the Food Stamp Act of 1977 to authorize the Secretary of Agriculture to conduct pilot or demonstration projects which permit cash payments in lieu of food stamps.

Directs the Secretary of Health, Education, and Welfare to regard a payment error rate of not more than four percent as a goal of the AFDC program. Directs the Secretary to study State AFDC error rates and report the findings, along with recommendations for reducing error rates, to Congress.

=Title II: Supplemental Security Income= - Amends title XVI (Supplemental Security Income, SSI) of the Social Security Act to direct the Secretary of Health, Education, and Welfare to make to an SSI recipient, in addition to the benefits currently provided, a cash payment in lieu of food stamps to an eligible individual who lives alone or with other eligible individuals.

Directs the Secretary of Agriculture to pay cash in lieu of food stamps, at the request of a State, to each household: (1) in which every individual is over 65; (2) which is eligible for food stamps; and (3) which is not entitled to SSI.

States that an individual shall cease to qualify for SSI as an eligible spouse after a couple has been living apart for more than one month. States that a husband and wife who are living in the same medical care facility shall be considered to be living apart for the purposes of title XVI.

Provides, with stated exceptions, that where an individual eligible for SSI is in a medical care facility, such individual's benefits for the period ending with the third consecutive month throughout which he or she is in such facility shall be determined as though he or she were continuing to reside outside the facility under the same conditions as prior to the entrance of such individual to the facility.

Includes remuneration received for services performed in a sheltered workshop or work activities center as earned income, for the purpose of determining eligibility under title XVI based on income.

Excludes a burial plot, certain burial expenses, and certain unearned income received in the form of real or personal property from the resources of an individual when determining the eligibility of such individual for SSI.

Increases the amount of the cash advances available to an individual who is presumptively eligible for SSI and who is faced with a financial emergency.

Permits an individual, if hospitalized outside the United States, to remain eligible for SSI if the foreign hospital was substantially more accessible than the nearest hospital within the United States.

Repeals the definition of the term "child" for purposes of the SSI program and deletes the use of such term from the program. Substitutes conditions of age and occupation for the use of the term "child."

Provides for the termination of State SSI supplementary payments in certain instances.

Prohibits an individual from receiving SSI benefits for specified periods if within 24 months of applying for benefits such individual disposed of property having an uncompensated value of more than $3,000 and which if retained would have caused such individual to be ineligible for benefits. Permits the Secretary to waive the prohibitions of this paragraph if such waiver is justified.

Provides that the income and resources of an individual who sponsors an alien for admission to the United States shall be imputed to such alien during the period of sponsorship, but not later than three years, for purposes of determining eligibility for benefits under title XVI. Exempts aliens who became blind or disabled after the date of their admission to the United States. Authorizes the Secretary to waive such requirements for good cause.

Extends, under title XVI, until October 1, 1982, the program of Federal payments to States for costs incurred in carrying out a State plan of services for disabled children who receive SSI benefits.

Provides that for the purpose of determining resources and benefits for an SSI applicant or recipient living in another's household such applicant or recipient shall be considered to be living in his or her own household if such individual has contributed a certain share towards the expenses of such other person's household.

Provides that when an individual who was represented by an attorney obtains a favorable decision in a claim for past due SSI benefits, the court may allow as part of the judgment a fee for such representation not to exceed 25 percent of such benefits.

Provides that eligibility and the benefit amount for SSI will be determined on a monthly rather than a quarterly basis.

Directs the Secretary to establish procedures for the prompt replacement of SSI benefit checks which have been lost, stolen, destroyed or not delivered within two mail delivery days following the day regularly designated for delivery.

Prohibits any SSI benefit check from being honored for payment after 180 days have elapsed following the day on which it was issued.

Directs the Secretary to investigate the eligibility of any individual whose check was not presented for payment within the 180 days.

=Title III: Amendments Applicable to Two or More Programs Under the Social Security Act= - Amends title XI of the Act to set forth provisions concerning the disclosure of information relating to unemployment compensation which an individual has applied for, is receiving, or has received.

Amends the Internal Revenue Code to authorize the Commissioner of Social Security to disclose tax return information, for the purpose of determining eligibility or amount of benefits under specified programs of the Social Security Act or establishing and collecting child support obligations, to officers and employees of: (1) the Department of Health, Education, and Welfare; or (2) a State administering agency or a State or local child support enforcement agency.

Requires that SSI benefits received during the period in which an individual's application for benefits under title II (Old Age, Survivors, and Disability Insurance) of the Social Security Act is pending be recovered from any payment of OASDI benefits which is made retroactive to the date of application.

=Title IV: Child Support Enforcement= - Amends part D (Child Support and Establishment of Paternity) of title IV of the Social Security Act to authorize appropriations for the enforcement of support obligations owed by absent parents not only to their children, as is presently provided for, but also to the spouse, or former spouse, with whom such child is living. Makes permanent the requirement that a State plan provide child support collection or paternity determination services to an individual not otherwise eligible for such services under the plan.

Permits a State, for purposes of determining eligibility for AFDC, to disregard for up to three consecutive months support payments received under part D of title IV.

Prohibits payments to a State for child support services under part D of title IV unless the State submits to the Secretary a report specifying: (1) the amount of child spousal support collected and disbursed; and (2) all expenditures made with respect to such services.