ARIZONA STATE SENATE
welfare; wheels to
work
Reduces the time frame of the Wheels to Work Program from twelve to six months.
Laws 1998, Chapter 208 established a pilot program called Wheel to Work, to assist Temporary Assistance for Needy Families (TANF) recipients transitioning from welfare to stable employment. Program participants must be employed and require a vehicle for essential transportation.
The Department of Economic Security (DES) contracts with a private entity to administer the program. The private entity secures vehicles, donated for a tax credit, and leases them to participants for $20 per month. The private entity is responsible for all necessary repairs and insurance for the vehicle. The private entity may accept donations of repair services for the vehicle during the program period. Under current statutes, the client receives title to the car after twelve months of participation in the program. According to DES, the program was fully operational with statewide coverage at six sites in November 1999. In FY 1999-2000, 186 participants received a program vehicle.
The bill reduces the length of the program from twelve to six months, allows the private entity to purchase vehicles for program purposes and restricts program participation to Arizona residents.
The program is currently funded at $2 million per year. According to the Joint Legislative Budget Committee (JLBC), reducing the program from twelve to six months could generate up to $275,200 in each of FY 2002 and 2003 to provide vehicles to additional people.
1. Reduces the Wheels to Work program from twelve to six months.
3. Prohibits the program from granting title to a vehicle unless the recipient has complied with the terms of the lease.
4. Restricts program eligibility to Arizona residents.
5. Requires a qualified participant to return the vehicle if the participant does not maintain Arizona residency.
6. Allows the private entity to purchase vehicles for program use and makes the entity responsible for damages, repairs, emission compliance, insurance and safety of the vehicle.
7. Excludes the private entity from the tax credit for vehicles donated to the program.
8. Makes technical and conforming changes.
9. Provides for a general effective date.
HS 2/20/01 DPA 9-0-0-1
APPROP 2/27/01 DPA 12-0-0-4
3rd Read 3/12/01 53-0-7-0
Prepared by Senate Staff
April 2, 2001