House of Representatives

HB 2515

Arizona works; program extension

Sponsors: Knaperek, Weiers, Anderson, Blendu, et al.

DPA	Committee on Appropriations
DPA	Caucus and COW
DPA	Third Read
X	As Passed the House

HB 2145 continues the Arizona Works pilot program for an additional year and makes several changes to the program.

History

The Arizona Works Pilot Program was created through Laws 1997, Ch. 300 and Laws 1998, Ch. 211 to determine the cost effectiveness of privatizing public assistance administration. The program privatizes Temporary Assistance for Needy Families (TANF) by operating intake, eligibility and employment training through a private contractor. The contractor and site for the pilot program were determined by the Arizona Agency Procurement Board (Board), which was statutorily charged with creating Arizona Works and continuing to oversee the pilot project. The Arizona Works pilot project was originally implemented on April 1, 1999 in Eastern Maricopa County, and the contractor chosen to administer the program was MAXIMUS, Inc.

At its inception, Arizona Works was intended to be a two-phase pilot, the first phase taking place in an urban area and the second in a rural area. Although the second phase was to be implemented by April 1, 2001, the Board made the final site decision in December 2001 and the second phase has yet to be implemented.

Arizona Works currently serves 13 percent of the households in Arizona that receive benefits under TANF and is scheduled to end on December 31, 2002. HB 2515 extends the Arizona Works Pilot Program for another year, eliminates the Board and directs DES to take over the duty of determining caseload eligibility from the private contractor MAXIMUS, Inc.

Provisions

· Eliminates the Board and allows the Department of Economic Security (DES) to take over its duties.

· Removes the duty of determining caseload eligibility from the contractor and returns the responsibility to DES. The private contractor will retain the responsibility for eligibility determinations in the TANF Related Child Care Program.

· Requires the contractor to employ caseload liaisons and support for DES.

· Extends the pilot project and the due date for the final performance review by one year.

· Changes the amount available for cash assistance from a flat monthly grant to the amount a participating family would normally receive through TANF.

· Stipulates that the private contractor and DES must renegotiate the contract within 90 days of any federal changes that impact the program.

· Adds a financial penalty for the private contractor for non-compliance with record-keeping requirements.

· Changes the start date for the fifth year of the program from January 1, 2002 to September 1, 2002

· Requires DES to take over all duties of the Board.

· Requires DES and the private contractor to negotiate and modify the contract to reflect the changes made by this bill.

· Provides an effective date of August 31, 2002.

· Makes technical and conforming changes.

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45th Legislature

Second Regular Session 3 April 6, 2002

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