Privatization of Welfare-to-Work Programs Act Exposed

The Privatization of Welfare-to-Work Programs Act is listed under ALEC's Health and Human Services Task Force, however, no adoption or approval information is available. ALEC has attempted to distance itself from this piece of legislation after the launch of ALECexposed.org in 2011, but it has done nothing to get it repealed in the states where it previously pushed for it to be made into law.

CMD's Bill Summary

This bill would privatize the "Welfare to Work" program part of the Temporary Assistance for Needy Families Program. It apparently requires privatization regardless of the effectiveness of any public agencies currently providing employment and training services under TANF.

ALEC Bill Text

Section 1. Title. This Act shall be known and cited as the" Privatization of Welfare-to-Work Programs Act."

Section 2. Definitions. As used in this Act:

A. "Welfare-to-Work" program means the employment and job training program for families with dependent children who are recipients of the Temporary Assistance for Needy Families (TANF).

B. "Workfare Agency" means the private organization that is contracted by the Department to administer the Welfare-to-Work program.

C. "Employment" is used as defined in TANF.

D. "Department" means appropriate state human services department.

E. "Benefits" mean appropriate cash benefits and food stamp benefits.

F. "Competitive contracting" means the state Department will choose the private providers from which it will purchase related services.

Section 2. Work-Not-Welfare Program.

A. The Department shall contract for the delivery, administration, and management of employment and job training program using the federal block grant assistance provided to the states through the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

B. The Department shall require able individuals who are 18 to 60 years of age who are not employed participants in a Welfare-to-Work program, except as listed in Section 2 (C), to participate in the employment and job training program.

C. Exemptions to the work requirement include:

1) The Department may not require an individual who is a recipient under the food stamp program and is the caretaker of a child who is under the age of 12 weeks to participate in an employment and job-training program

Drafting Note: Federal law requires MDP

D. The Department may distribute benefits on a pay-for-performance level. Drafting note: refer to ALEC's Pay for Performance Act.

Section 3. Agency Contracts.

A. The Department may award a two-year contract, on the basis of a competitive contracting process approved by the secretary of administration, to any person to administer the Welfare-to-Work Program in a geographical area determined by the Department. Drafting note: Refer to ALEC's Competitive Contracting of Public Services for competitive contracting process.

B. The Department shall contract with a county to administer the Welfare-to-Work Program county, if the county has met the TANF requirements with dependent children caseload performance standards established by the Department.

C. When the contract expires, a county may apply for a new contract under the competitive contracting process.

D. The Workfare Agency's contract will only be renewed if the Agency has placed a predetermined percentage of TANF recipients in employment for {insert time frame, i.e.3-6 months.} The Department must establish this percentage at the beginning of each contract.

Section 4: Agency Requirements.

The Agency must, but is not limited to:

A. Advise program participants on employment and job activities;

B. Identify and encourage employers to provide permanent jobs for persons who are eligible for trial jobs or community service jobs;

C. Create, and encourage others to create subsidized jobs for persons who are eligible for trial jobs or community services jobs;

D. Create, and encourage others to create, on-the-job training sites for persons who are eligible for trail jobs or community services jobs;

E. Foster and guide the entrepreneurial efforts of participants who are eligible for trial jobs or community service;

F. Provide mentors, both from membership and recruitment of members from the community, to provide job-related guidance to persons who are eligible for trial jobs or community services jobs;

G. Work with participants, employers, child care providers and the community to identify child care needs, improve access to care and expand availability of child care;

H. Seek sources of private funding to match employment skills advancement grants; and

I. Identify motivational training programs, including programs that enhance parenting skills.

Section 5. Performance Standards.

The Department shall establish performance standards for the administration of WorkNot-Welfare programs. If a Workfare Agency does not meet the standards the Department may withhold any or all payment from the Workfare Agency.

Section 6. Performance Incentives for Workfare Agencies.

A. The Department must award the Agency a bonus for each recipient placed in employment, the longer the recipient remains employed. and will decrease on a slidingscale {insert time frame, e.g. 12 months} the longer the recipient remains unemployed.

Drafting Note: A maximum bonus amount and maximum time frame must be established.

B. The Department must submit an annual report regarding quality performances, outcome measure attainment, and cost-effectiveness to the state legislature and Governor.

Section 7. [Severability clause]

Section 8. [Repealer clause]

Section 9. [Effective date]