SENATE BILL NO. 467

INTRODUCED BY S. BARTLETT

A BILL FOR AN ACT ENTITLED: "AN ACT ESTABLISHING A FAIM REEMPLOYMENT INSURANCE PROGRAM FOR LOW-WAGE WORKERS; PROVIDING ELIGIBILITY CRITERIA, REPORTING REQUIREMENTS, AND A PROCEDURE FOR CALCULATION OF BENEFITS; PROVIDING THAT THE PROGRAM MUST BE FUNDED WITH STATE MAINTENANCE OF EFFORT FUNDS CURRENTLY REQUIRED TO ACCESS THE FEDERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT; AND PROVIDING AN EFFECTIVE DATE."

WHEREAS, until adoption of federal welfare reform initiatives, the state welfare system served as the unemployment insurance program for low-wage workers; and

WHEREAS, statistics establish that working welfare recipients, especially single women, were ineligible for traditional unemployment insurance benefits because of the loss of qualifying wages and because of the failure of the system to recognize child-care issues and domestic violence as good cause for voluntarily leaving employment; and

WHEREAS, it is unfair to force low-wage workers to depend on welfare between jobs while another class of workers enjoys the benefits of the current unemployment insurance program; and

WHEREAS, establishment of a reemployment insurance program for low-wage workers would divert families from returning to welfare and allow a more accurate assessment of the reasons welfare recipients need assistance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Family assistance in FAIM reemployment insurance program. (1) There is established a FAIM reemployment insurance program for low-wage workers who would qualify for the temporary assistance for needy families program but are ineligible for unemployment insurance benefits.

(2) The program is intended to divert families from welfare between periods of employment and, as a result, will allow a more accurate assessment of the assistance needed.

NEW SECTION. Section 2. Eligibility criteria -- application and reporting requirements -- calculation of benefits -- definition of good cause -- exceptions. (1) Any new FAIM applicant or any current participant in FAIM financial assistance at the time of application or transfer, is eligible to apply for the FAIM reemployment insurance program if the applicant or transferee:

(a) meets all the financial eligibility criteria for FAIM financial assistance;

(b) has been employed for 20 hours or more a week as an employee for a minimum of 3 out of the last 4 months at a position paying minimum wage or greater;

(c) is ineligible for regular unemployment insurance benefits;

(d) establishes that the loss of all employment held during 3 out of the last 4 months worked was based on good cause, as defined in subsection (9); and

(e) cooperates with child and medical support enforcement provisions.

(2) A participant is eligible for 1 month of FAIM reemployment insurance for each month in which the participant has worked for 20 hours or more a week in the preceding 6-month period for a maximum total of up to 6 months.

(3) To apply for benefits under the FAIM reemployment insurance program, an applicant shall provide information on the regular FAIM financial assistance application and shall elect the option identified as the FAIM reemployment insurance program.

(4) To receive FAIM reemployment insurance benefits, the participant shall actively look for work and shall keep a written record of all employers contacted. The department may audit the participant's record of employer contacts to verify that the participant is actively looking for work. A participant who does not actively look for work or who refuses suitable work is ineligible for FAIM reemployment insurance benefits. If a participant becomes ineligible and subsequently applies for FAIM financial assistance, the department shall assess the reasons that the participant lost eligibility for FAIM reemployment insurance benefits and address those problems in the participant's family investment agreement.

(5) The participant shall report anticipated earned income within 10 days of beginning new employment, and the FAIM project pathways income disregards must be applied to determine continued eligibility for the FAIM reemployment insurance program. If income is earned during the period in which the participant is receiving FAIM reemployment insurance, FAIM project pathways income disregards must be applied and the amount of the FAIM reemployment insurance program benefits must be determined in the same manner as benefits under the FAIM project pathways program when participants report earned income.

(6) Benefits for participants in the FAIM reemployment insurance program must be calculated in the same manner and using the same procedures as those used to calculate benefits for a participant in the FAIM project pathways program. Upon calculation, benefits must be issued once each month, using the procedure established for the FAIM project pathways program. Benefits must be paid from the state maintenance of effort funds currently required to access the federal temporary assistance for needy families block grant. Maintenance of effort funds must be tracked as a separate program without any commingling of state maintenance of effort funds with federal temporary assistance for needy family funds.

(7) The FAIM reemployment insurance program participant is eligible for the one-time employment-related payment and FAIM project child-care assistance solely for the time required for the participant's job search and must be considered similarly to FAIM financial assistance participants for determining eligibility for medicaid and the food stamp program.

(8) A FAIM reemployment insurance program participant is not eligible for case management services, single component services, or support services or for the federal employment and training program services as provided in 53-4-703.

(9) As used in this section, "good cause" means:

(a) a breakdown in transportation

in which the distance to the place of employment prohibited walking or biking and other forms of transportation to the place of employment were unavailable;

(b) a breakdown in child-care arrangements;

(c) suitable child care was unavailable during the hours of employment; or

(d) other conditions or circumstances existed that prevented the continuation of employment or made continuation of employment inadvisable, including domestic violence, temporary illness of the applicant or transferee or a dependent of the applicant or transferee, or a death in the family.

NEW SECTION. Section 3. Codification instruction. [Sections 1 and 2] are intended to be codified as an integral part of Title 53, chapter 4, part 2, and the provisions of Title 53, chapter 4, part 2, apply to [sections 1 and 2].

NEW SECTION. Section 4. Effective date. [This act] is effective July 1, 1999.

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