HB2689 - 452R - House Bill Summary

House of Representatives

HB 2689

welfare; student financial aid

Sponsors: Representatives Pickens, Lopez L

X	Committee on Human Services
	Caucus and COW
	Third Read
	As Passed the House

HB 2689 requires the Department of Economic Security (DES) to establish a Student Financial Aid Pilot Program (program) to assist Temporary Assistance for Needy Families (TANF) recipients in obtaining financial aid and other services for 24 months while pursuing a degree at a college or university.

History

TANF provides assistance to needy families while promoting job preparation and self-sufficiency. A recipient becomes ineligible for assistance after receiving cash assistance for a 24 month period during any consecutive 60 month time period. TANF follows a work first philosophy in which recipients are required to engage in work activities to remain eligible for assistance. Current law provides temporary work exemptions for single parents caring for children less than 12 months of age, unmarried custodial parents under the age of 18 or disabled individuals. HB 2689 establishes a pilot program to assist 500 TANF recipients who are enrolled in a degree granting college or university to obtain financial aid and other assistance and defer the work requirements while enrolled in the program.

Provisions

· Requires DES to establish a program to assist 500 degree seeking individuals with dependent children who are enrolled at a two or four year college or university.

· Specifies DES will assist those in the program in obtaining financial aid, cash assistance and other services comparable to those provided through welfare and TANF.

· Stipulates an individual is eligible to participation in the program 24 months, which does not include inactive time approved by DES.

· Permits an individual to apply to the program if the individual:

· Otherwise eligible for TANF

· Maintains an annual income less than 85 per cent of the median family income

· Seeks a post secondary education that will contribute to self-sufficiency

· Demonstrates aptitude to complete the education program

· Maintains Arizona residency for at least two years

· Employed a minimum of 32 hours a week for 10 of the preceding 16 weeks before the program

· Stipulates an individual must meet the following criteria to remain eligible for the program:

· Continued eligibility for TANF

· Enrolled in at least 12 credit hours each semester

· Maintain a “C” average

· Work at least 32 hours a week for 10 weeks during each summer break unless enrolled for a minimum of six hours during the summer.

· Requires an individual in the program in order to remain eligible to participate in a combination of education, study or work experience for an average of 20 hours per week for the first 24 months of the program, if this average is maintained an individual may continue to receive this assistance past the first 24 months.

· Exempts assistance received from the program from being calculated as a resource for TANF eligibility.

· Prohibits the use of TANF block grant monies to fund this program.

· Permits general fund monies used for the program to be counted toward the federal maintenance of effort requirement.

· Establishes a 13 member student financial aid advisory committee (committee) consisting of members representing various educational and employment interests.

· Requires the committee to provide recommendations to DES regarding the program, select the site of the program, identify necessary training programs and establish selection guidelines for participants of the program.

· Allows an individual in enrolled in the program to defer work requirements required under the JOBS program.

· Defines work site experience.

· Requires DES to establish the program by January 1, 2003.

· Exempts DES from rule making requirements for one year after the effective date.

· Repeals the program and committee from and after December 31, 2007.

· Makes technical and conforming changes.

· ---------- DOCUMENT FOOTER ---------

· 45th Legislature