SENATE 3rd Reading Unamended April 24, 2012 SENATE Amended 2nd Reading April 23, 2012Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 12-0631.01 Jerry Barry x4341 SENATE BILL 12-139 SENATE SPONSORSHIP Boyd, HOUSE SPONSORSHIP Fields and Summers, Senate Committees House Committees Health and Human Services Appropriations A BILL FOR AN ACT Concerning the "Colorado Job Support Act", and, in connection therewith, requiring a post-enactment review of the implementation of this act. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Currently, under the Colorado works program, the state board of human services defines "work activities" by rule. The bill expands the description of work activities to include financial education classes, participation in microenterprise training and self-employment, and time spent on agency appointments as well as travel to and from those appointments. When a person first applies for benefits under the Colorado works program, current law directs the county department of social services (county department) to conduct an assessment of the person's needs and abilities. The bill directs the county departments as part of the assessment to determine the person's employability and eligibility for benefits under social security programs. It encourages the county departments to collaborate with others in completing the assessment. Following the assessment, an individual responsibility contract (IRC) is developed. The bill specifies that the person is to take the lead in developing goals for the IRC. If the case manager does not include the person's goals in the IRC, the case manager must provide a written rationale for doing so. As part of the IRC, county departments are encouraged to include financial education. After the completion of the IRC, the bill directs the county departments to allow the person to select a single case manager for all meetings who will coordinate all services. Currently, the department of human services (state department) by rule specifies what may be disregarded for purposes of determining a person's income. The bill directs the state department to extend the income disregards to the fullest extent allowed by federal law. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 26-2-138 as follows: 26-2-138. Colorado job support act - pilot program - legislative declaration - definitions - fund - notice of funding through gifts, grants, and donations - repeal. (1) Short title. This section shall be known and may be cited as the "Colorado Job Support Act". (2) Legislative declaration. The general assembly hereby finds and declares that: (a) A paradox exists for Colorado's low-wage workers who seek services from the state's safety net programs in that, while they may initially qualify for public assistance or "work support" benefits through temporary assistance for needy families, the supplemental nutrition assistance program, medicaid, or the Colorado child care assistance program to help cover the cost of basic necessities, as they increase their earnings they begin to lose these subsidies. The loss of a subsidy is generally more of a financial setback than the value obtained from an increase in pay. Under these circumstances, workers can earn more while seeing their financial situation deteriorate. This phenomenon is characterized as the "cliff effect", and it is a barrier to economic self-sufficiency as well as a perverse incentive to maintain employment at an economic level of poverty. (b) It is in the public interest for low-wage workers to pursue economic opportunity, which benefits the individual, the family, the community, and the state. (c) It is important for the department of human services to create for the state-supervised, county administered Colorado works program a performance measurement system of desired goals, specific measures, performance targets, review procedures, identifiable outcomes, and, when available, incentives. (d) Currently, the Colorado works program lists the federal work participation as the primary performance measure, so there is a need to add other performance measures based upon culturally relevant, locally generated, promising practices that lead to participant success in the labor market, in family stabilization, in the interruption of the cycle of poverty, and in other evidence-based results stemming from the use of governmental dollars or services. (e) The provisions of this section are designed to support low-wage workers as they move from the need for work support toward economic self-sufficiency, which is the amount of income required for families and individuals to meet their basic needs. The pilot program established pursuant to this section will prepare these workers as they make the transition away from public assistance and will create opportunities for them to plan and implement their individual paths to economic self-sufficiency. (3) Definitions. As used in this section, unless the context otherwise requires: (a) "Cliff effect" means the paradox that discourages persons who are receiving public assistance or services from accepting increases in wages or income because they may lose considerably more in public assistance or services than the increase in wages or income. (b) "Committee" means the Colorado job support act committee established pursuant to subsection (5) of this section. (c) "Fund" means the Colorado job support program fund established pursuant to subsection (7) of this section. (d) "Pilot program" means the Colorado job support pilot program established pursuant to subsection (4) of this section. (4) Pilot program. Subject to the receipt of sufficient gifts, grants, or donations, there is hereby established in the state department the Colorado job support pilot program to provide grants to counties, nonprofit entities, or other community-based organizations to establish pilot programs to address one or both of the following: (a) Post-employment transition programs that address the cliff effect as a significant barrier for low-wage workers making a transition away from the Colorado works program; or (b) Subsidized job-training programs designed to assist unemployed and low-skilled and middle-skilled workers to gain necessary job skills through on-the-job training and work experience. (5) Committee. (a) There is hereby created in the state department the Colorado job support program committee that shall consist of the following nine members: (I) The executive director of the state department, or his or her designee, who shall serve as the chair of the committee, and the executive director of the department of labor and employment, or his or her designee. The executive directors shall serve as ex officio and nonvoting members of the committee. (II) Seven members appointed, pursuant to paragraph (b) of this subsection (5), by the state board as follows: (A) Three members who represent counties, at least one of whom is a county commissioner; and (B) Four members who represent participant advocates, participants, or former participants of the Colorado works program, at least one of whom is a current or former participant of the Colorado works program. (b) In making appointments to the committee, the state board shall solicit applications from county departments, advocacy agencies, and other interested persons throughout the state. The state department shall assist the state board in reviewing the applications received and in selecting appointees. The state board shall also seek appointment recommendations from a statewide association that represents counties in Colorado and from participant advocates of the Colorado works program. The state board shall, to the extent practicable, ensure that the persons appointed to the committee are selected from areas throughout the state and represent the state's racial, ethnic, and gender diversity. The state board may promulgate rules as necessary for the implementation of this section. (c) (I) The appointed members of the committee shall serve five-year terms. The state board may appoint the same person to serve multiple consecutive terms. (II) The committee shall meet as often as necessary to complete its duties and shall adopt such operational procedures as may be necessary. (III) The members of the committee shall serve without compensation and without reimbursement for expenses; except that the committee members who are not public employees may receive reimbursement for reasonable and necessary expenses incurred in serving as members of the committee. (IV) The appointed members of the committee may be removed by the state board for cause. If a vacancy arises among the appointed members of the committee, the state board shall fill the vacancy by appointment for the remainder of the term. (d) The committee shall advise the state department regarding the process and procedures for awarding grants from the fund. The committee shall also recommend entities to receive grants and the amount of the grants. (e) (I) This subsection (5) is repealed, effective July 1, 2018. (II) Prior to the repeal of this subsection (5), the committee shall be reviewed as provided for in section 2-3-1203, C.R.S. (6) Process. (a) After receiving recommendations from the committee, the state department shall develop an application process for counties, nonprofit entities, or other community organizations interested in participating in the pilot program and the criteria to be used to select which entities receive grants. The criteria shall give preference to an application that: (I) Meets at least one of the purposes of the Colorado works program specified in section 26-2-705; (II) Utilizes evidence-based strategies that have demonstrated effectiveness in achieving one of more of the following goals: (A) Job acquisition, retention, and advancement; (B) Mitigation or avoidance of the cliff effect; (C) Financial literacy; or (D) Effective case management; (III) Supports strategic alliances between counties, nonprofit service providers, engaged employers, job training organizations, the department of labor and employment, and the Colorado work force investment program; and (IV) Contains a system to measure and demonstrate performance in addition to the federal work participation rate. (b) The committee shall review all applications received and shall make recommendations to the executive director for awards of grants from the fund. The committee shall recommend only those applications that have been approved by at least five members of the committee. (c) After receiving the recommendations of the committee, the executive director shall award grants to recipients. (7) Fund. (a) (I) The state department is authorized to seek and accept gifts, grants, or donations from private or public sources for the purposes of this section; except that the state department may not accept a gift, grant, or donation that is subject to conditions that are inconsistent with this section or any other law of the state. The state department shall transmit all private and public moneys received through gifts, grants, or donations to the state treasurer, who shall credit the same to the Colorado job support fund, which fund is hereby created. The moneys in the fund are continuously appropriated to the state department for the direct and indirect costs associated with implementing this section. (II) The state treasurer may invest any moneys in the fund not expended for the purpose of this section as provided by law. The state treasurer shall credit all interest and income derived from the investment and deposit of moneys in the fund to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year remain in the fund and shall not be credited or transferred to the general fund or another fund. (b) (I) In seeking or accepting a gift, grant, or donation, the state department shall notify the legislative council staff when it has received adequate funding through gifts, grants, or donations for the pilot program and shall include in the notification the information specified in section 24-75-1303 (3), C.R.S. (II) This paragraph (b) is repealed, effective July 1, 2015. SECTION 2. In Colorado Revised Statutes, 2-3-1203, add (3) (ee) (V) as follows: 2-3-1203. Sunset review of advisory committees. (3) The following dates are the dates for which the statutory authorization for the designated advisory committees is scheduled for repeal: (ee) July 1, 2018: (V) The Colorado job support act committee created pursuant to section 26-2-138 (5), C.R.S. SECTION 2. Accountability. Five years after this act becomes law and in accordance with section 2-2-1201, Colorado Revised Statutes, the legislative service agencies of the Colorado General Assembly shall conduct a post-enactment review of the implementation of this act utilizing the information contained in the legislative declaration set forth in section 1 of this act. SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.