Social Welfare Reform Amendments of 1979

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: (1) the first $70 per month of earned income plus one-third of the remainder of such income shall be disregarded from the earned income of any child or relative receiving AFDC; and (2) a certain amount of the total income, as determined by a formula set forth in this Act, shall be disregarded.

Defines the term "income" for purposes of part A to include all income from whatever source, excluding certain items, including: (1) the cost of producing self-employment income and 20 percent of wages, salary, or self-employment income; and (2) an amount of earned income equal to the monthly cost of care for a child up to a limit of $160 per month.

Requires that specified portions of the income of the stepparents of a dependent child be included as income for purposes of determining eligibility under part A.

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) any 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.

Eliminates the term "unemployed father" and substitutes the term "unemployed parent.

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 "principal earner" need register for manpower services, training, and employment as a condition of eligibility for AFDC.

Permits a State to pay reduced benefits, in the case of an AFDC child living with a relative who is not legally responsible for such child, based upon the costs of shelter and utilities for such child.

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

Requires a State plan to cover the parent of a dependent child who lives in the same home as the child, and, both parents, if the child is deprived by reason of the incapacity or unemployment of one parent.

Sets forth a formula for determining monthly AFDC payments based in part on a family's "monthly cash needs standard." Directs each State to establish a monthly cash needs standard for a family with dependent children such that, for any such family with no income other than AFDC payments the monthly cash needs standard plus the value of the monthly allotment of food stamp coupons shall equal an amount that is not less than 65 percent of the income poverty guidelines for a family with the same number of members as such family. Permits 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.

Defines the term "income poverty guidelines.

Directs a State to pay benefits for a specified period to an AFDC applicant who is presumptively eligible if a determination of eligibility cannot be made within 30 days of an application for benefits. Requires a State to replace a lost or stolen check within ten days from the date replacement was requested. Requires a State to provide a fair hearing to any applicant whose claim for AFDC benefits is denied.

Sets forth State plan requirements 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.

Authorizes appropriations under part C (Work Incentive Programs) of title IV to be made directly to the Secretary of Labor.

Requires a State to provide an administrative system for coordinating employment and training services required by title IV and similar services of the Comprehensive Employment and Training Act (CETA). Sets forth provisions relating to the coordination of the WIN and CETA programs. Establishes a national committee to coordinate such programs.

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 State's "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.

Amends title XIX (Medicaid) of the Social Security Act to restrict automatic eligibility of AFDC recipients for Medicaid benefits in any month to: (1) an individual who had been eligible for such benefits on the basis of receipt of AFDC in one of the four months preceding such month; or (2) an individual who would qualify for AFDC on the basis of low income without deducting specified earnings which may be disregarded in determining eligibility for AFDC.

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 for 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. Excludes from earned income earnings performed in a public service job if such earnings are paid in whole or in part from funds provided under title II (Comprehensive Employment and Training Services) of CETA.

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

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.

Includes renumeration 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.

Repeals the requirement that a State pay a mandatory supplement to an SSI recipient who was a recipient in December 1973.

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.

Provides that when an individual who was represented by an attorney obtains a favorable judicial 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 quarterly basis.

Specifies situations in which optional supplementation of SSI benefits may be authorized.

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.

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.

Title III: Amendments Applicable to Two or More Programs Under the Social Security Act - Sets forth provisions establishing time periods within which claims for Federal reimbursement to a State for expenditures under the Social Security Act must be made.

Amends title VII (Administration) of the Social Security Act to authorize expenditures from any or all of the Trust Funds for the administrative costs of carrying out the OASDI and Medicare (title XVIII) programs. Requires that such sums be transferred from the Trust Funds to separately identified accounts in the Treasury.

Increases from $4,000,000 to $20,000,000 the amount available under part A of title XI to make additional Federal payments to States for certain demonstration projects under the Act.

Deletes the requirement that all experimental and demonstration projects under the Act financed from Federal funds be personally approved by the Secretary or the Under Secretary.

Amends titles I (Old Age Assistance and Medical Assistance), IV part A, X (Aid to the Blind), XIV (Aid to the Permanently and Totally Disabled), and XVI of the Act to provide for a Federal matching rate of 75 percent of the sums expended under the State plans of Puerto Rico, the Virgin Islands, and Guam. Doubles the applicable funding limitations for such payments as set forth in title XI part A for fiscal years 1972 and thereafter, with the exception of fiscal year 1979 which shall remain the same.

Amends the Immigration and Nationality Act to prohibit an immigrant from entering the country unless: (1) there is in effect with respect to such immigrant an agreement providing that an approved sponsor shall furnish such financial support as is necessary to prevent the immigrant from qualifying for SSI benefits, AFDC, or other public assistance based on need for the five years following the entry of such immigrant into the United States; (2) such immigrant has other means to support himself or herself; or (3) such immigrant is a political refugee.

States that such agreement shall be excused if: (1) the sponsor dies or becomes bankrupt; (2) the immigrant is under age 65 and becomes blind or disabled after entering the United States; or (3) the sponsor cannot fulfill the agreement due to circumstances that were not forseeable at the time the agreement was made.

Amends title III (Unemployment Compensation Administration) 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 permit officers and employees of the Social Security Administration to disclose tax return information disclosed to them to officers and employees of the Department of Health, Education, and Welfare or to an appropriate State agency for the purpose of determining eligibility for benefits or the amount of such benefits under specified programs of the Social Security Act.

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 and spousal support collected and disbursed; and (2) all expenditures made with respect to such services.