74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 722
 
                         House Bill 2180
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Department of Human Services)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Expands temporary assistance to needy families to include new
temporary assistance to needy families SSI program and new
post-employment temporary assistance to needy families program
for working families. Incorporates provisions establishing
two-parent family program into temporary assistance to needy
families series.
  Renames 'programs to develop employment or self-sufficiency
skills' as 'job opportunity and basic skills program.' Requires
assessment and case planning. Creates special provisions for
participants with disabilities. Extends job opportunity and basic
skills program exemption to 12 months for parent of infant.
Imposes penalties for failing to comply with case plan in job
opportunity and basic skills program.
  Changes time limit for receipt of temporary assistance to needy
families to 60-month lifetime limit. Specifies exceptions from
time limit.
  Exempts participants in temporary assistance to needy families
SSI program and two-parent family program from requirement to
assign child support. Adds recipients of temporary assistance to
needy families to list of individuals rebuttably presumed to be
unable to pay child support. Authorizes Department of Human
Services to recover adult portion of temporary assistance to
needy families from retroactive Supplemental Security Income
payments.
 
                        A BILL FOR AN ACT
Relating to temporary assistance to needy families; creating new
  provisions; and amending ORS 25.245, 411.010, 411.070, 411.105,
  411.120, 414.025, 418.035, 418.040, 418.042, 418.045, 418.070,
  418.075, 418.085, 418.095, 418.131, 418.132, 418.155, 418.160,
  418.163 and 418.185 and section 1, chapter 212, Oregon Laws
  2003.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 418.035 is amended to read:
  418.035. As used in ORS 418.035 to 418.172, unless the context
or a specially applicable statutory definition requires
otherwise:
  (1) 'Aid' means money payments with respect to, or on behalf
of, a dependent child or children and includes:
  (a) Money payments to meet the needs of the relative with whom
the child is living and:
  (A) The spouse of the relative if the spouse lives with the
relative, the relative is the child's parent and the child is a
dependent child by reason of the physical or mental incapacity of
a parent; or
  (B) The spouse of the relative if the spouse lives with the
relative, the relative is the child's parent and the child is a
dependent child   { - as defined in ORS 418.070 (2)(a) - }  and
is dependent by reason of the unemployment of parents.
  (b) Payments made to a representative payee or guardian
pursuant to ORS 418.050 or 418.054.
  (2)(a) 'Dependent child' means a needy child:
  (A) Who has been deprived of parental support or care by reason
of the  { + unemployment or underemployment,  + }death, continued
absence from the home or physical or mental incapacity of a
parent;
  (B) Whose relatives are not able to provide adequate care and
support for the child without public assistance, as defined in
ORS 411.010;
  (C) Who is living with the child's father, mother, grandfather,
grandmother, brother, sister, stepfather, stepmother,
stepbrother, stepsister, uncle, aunt, first cousin, nephew or
niece in a place of residence maintained by one or more of such
relatives as the child's or their own home; and
  (D) Who meets the requirements of paragraph (b) of this
subsection.
  (b)(A) Except as provided in subparagraphs (B) and (C) of this
paragraph, a 'dependent child' must be under the age of 18 years.
  (B) A child may qualify as a 'dependent child,' subject to the
availability of funds, if the child is 18 or 19 or 20 years of
age and a student regularly attending a school in grade 12 or
below or regularly attending a course of professional or
technical training designed to fit the child for gainful
employment, other than a course provided by or through a college
or university.
  (C) Students under the age of 21 years and regularly attending
a school, college or university or regularly attending a course
of professional or technical training designed to fit the child
for gainful employment may be included in the description in
subparagraph (B) of this paragraph at the option of the
Department of Human Services.
   { +  (3) 'Federally required participation rates' means the
requirements imposed upon states by section 407 of the Social
Security Act. + }
    { - (3) - }  { +  (4) + } 'Representative payee' means an
individual designated by the department to receive money payments
of aid pursuant to ORS 418.050.
  SECTION 2. ORS 418.040 is amended to read:
  418.040. (1) Aid pursuant to the temporary assistance for needy
families program shall be granted under   { - ORS 418.035 to
418.125 - }   { + this section and ORS 418.185  + }to any
dependent child who is living in a home meeting the standards of
care and health fixed by the rules and regulations of the
Department of Human Services and who is a resident of the State
of Oregon, if the parent or other relative with whom the child is
living is a resident of the State of Oregon.
   { +  (2) Needy caretaker relatives described in ORS 418.035
(2)(a)(C) may be required to participate in the job opportunity
and basic skills program described in this section.
  (3) The department shall adopt appropriate screening and
assessment procedures to identify the barriers to obtaining or
maintaining employment for an individual participating in the job
opportunity and basic skills program.
  (4) Based upon the screening and assessment under subsection
(3) of this section, the department shall work with the
participant to create an individualized case plan that is
goal-oriented, identifies mandatory activities that support the
case plan goals and provides for needed support payments and
services from the department.
  (5) For individuals with disabilities, the goal of the
individualized case plan must be to promote greater independence
in the individual's level of functioning and may include physical
or mental health evaluation, or treatment required by ORS
418.134. + }
    { - (2) - }  { +  (6) + }   { - No - }   { + A + } parent of
a child receiving aid under ORS 418.035 to   { - 418.125 - }
 { +  418.172 + }   { - shall - }   { + may not + } be exempt
from a requirement to participate in   { - programs to develop
employment or self-sufficiency skills - }  { +  the job
opportunity and basic skills program + } due to the age of the
child except:
  (a) During the first two months of the third trimester of
pregnancy, the parent shall not be required to participate more
than 10 hours per week and shall be exempt from participation
during the last month of pregnancy; and
  (b) During the first   { - 90 days - }  { +  12 months + }
after the birth of a child.
    { - (3) - }   { + (7) + }   { - No - }   { + Except as
provided in subsection (6)(a) of this section, an  + }individual
in a household receiving aid under
  { - ORS 418.035 to 418.125 shall - }  { +  this section and ORS
418.185 may not  + }be exempt, due to the pregnancy of the
individual, from a requirement to obtain a high school diploma or
its equivalent or to participate in   { - programs to develop
employment or self-sufficiency skills - }  { +  the job
opportunity and basic skills program + }.
    { - (4) No parent shall be eligible to receive aid under ORS
418.035 to 418.125 if the parent fails to participate in programs
to develop employment or self-sufficiency skills during the
period of eligibility determination. - }
   { +  (8) If a caretaker relative required to participate in
the job opportunity and basic skills program refuses, without
good cause, to comply with the case plan developed pursuant to
this section, during the period of eligibility determination, the
relative shall not be eligible to receive aid under this section
or ORS 418.185. + }
    { - (5) - }  { +  (9) + } The provisions of subsection
 { - (3) - }  { +  (7) + } of this section   { - shall - }
 { + do + } not apply to an individual experiencing medical
complications due to pregnancy, as determined by a person
licensed by the Board of Medical Examiners or the Oregon State
Board of Nursing, that prohibit participation in the activities
otherwise required.
    { - (6) Notwithstanding section 16, chapter 739, Oregon Laws
1993, and subsection (5) of this section, no individual in a
household receiving aid under ORS 418.035 to 418.125 shall be
exempt from any requirement to participate in programs to develop
employment or self-sufficiency skills, as defined by the
department, unless the individual and the individual's department
case manager agree in writing that the exemption is appropriate
under guidelines developed by the department. - }
    { - (7) The department by rule shall define programs to
develop employment or self-sufficiency skills for purposes of
this section. - }
   { +  (10) The department shall adopt rules to implement the
provisions of this section. + }
  SECTION 3. ORS 418.045 is amended to read:
  418.045. (1) The need for and amount of aid pursuant to the
temporary assistance for needy families to be granted for any
dependent child or relative pursuant to ORS   { - 418.035 to
418.172 - }  { + 418.040 and 418.185 + } shall be determined, in
accordance with the rules and regulations of the Department of
Human Services, taking into account:
  (a) The income, resources and maintenance available to such
child and relative from whatever source derived, allowable
deductions and the statewide income and payment standards.
  (b) The income and financial condition of the stepparent, if
any, of the child for whom aid is sought.
  (2) Subsection (1)(b) of this section is not intended to
relieve any father of any legal obligation in respect of the
support of the natural or adopted children of the father.
  (3) In the determination of eligibility and the amount of need,
and in any reconsideration thereof, with respect to an applicant
or recipient of aid pursuant to ORS 418.035 to 418.172, such
amounts of income and resources may be disregarded as the
department may prescribe by rules and regulations promulgated by
it. The amounts to be disregarded shall be within the limits
required or permitted by federal laws and by federal rules and
orders thereto applicable.
    { - (4)(a) Notwithstanding section 16 (5)(d), chapter 739,
Oregon Laws 1993, an individual who fails to cooperate in such
education, employment or job training programs as may be required
by law shall have aid payments reduced by the amount of $50 for a
period of two months. - }
    { - (b) Continued failure of an adult aid recipient to
cooperate in mandatory education, employment or job training
programs for more than two months as described in paragraph (a)
of this subsection shall result in the removal of the
noncooperating adult from the eligibility determination for the
corresponding recipient family for a period of two months in
addition to the period required under paragraph (a) of this
subsection. - }
    { - (c) Subsequent and continued failure of an individual to
cooperate in mandatory education, employment or job training
programs beyond the period described in paragraph (b) of this
subsection shall result in termination of all aid. - }
    { - (d) The department shall adopt rules defining standards
for cooperation in programs for education, employment or job
training as provided in this subsection. - }
    { - (5) Aid terminated under subsection (4) of this section
shall be restored upon demonstrated cooperation, as defined by
the department, in applicable education, employment or job
training programs. - }
   { +  (4)(a) Following notice and an opportunity for a hearing
in accordance with ORS chapter 183, the department shall reduce
aid payments to any family in which a caretaker relative required
to participate in the job opportunity and basic skills program
refuses, without good cause, to comply with an appropriate case
plan developed pursuant to ORS 418.040, by removing the
noncomplying individual from the benefit determination for the
family for a minimum of one month.
  (b) If the noncomplying caretaker relative continues to refuse,
without good cause, to comply with a case plan developed pursuant
to ORS 418.040 for two months, the department shall terminate all
aid to the family for a minimum of three months.
  (c) The reduction in aid under paragraph (a) or (b) of this
subsection shall continue until the noncomplying individual
complies with an appropriate case plan for two consecutive weeks.
  (d) The penalties in paragraphs (a) and (b) of this subsection
do not apply to families receiving aid pursuant to ORS 418.155 or
section 9 of this 2007 Act.
  (e) The penalties under paragraphs (a) and (b) of this
subsection shall not be imposed upon a family in which the
caretaker relatives required to participate in the job
opportunity and basic skills program are engaged in work
activities for the number of hours required each month to satisfy
federally required participation rates. + }
  SECTION 4. ORS 418.070 is amended to read:
  418.070.   { - For the purposes of ORS 418.035 to 418.185, - }
With respect to any period for which federal funds are made
available to this state   { - in aid of - }  { +  for + } a
state-administered program of
  { - aid - }  { +  assistance + } to any child defined in and
meeting the requirements of this section { + , the Department of
Human Services is authorized to provide assistance. For the
purposes of this section + }:
  (1) 'Aid' includes foster care in behalf of a child described
in subsection   { - (2)(b) - }  { +  (2) + } of this section in
the foster home of any individual or in a licensed nonprofit
private child-caring agency.
  (2) 'Dependent child' includes { +  a child + }:
    { - (a) A needy child meeting the requirements of ORS 418.035
(2)(b)(A) or (B) who has been deprived of parental support or
care by reason of the unemployment of a parent or parents and who
is living with any of the relatives specified in ORS 418.035 (2)
in a place of residence maintained by one or more of such
relatives as the relative's or relatives' own home. - }
    { - (b) a child: - }
    { - (A) - }  { +  (a) + } Who would meet the requirements of
ORS 418.035 (2)
  { - or of paragraph (a) of this subsection - }  except for
removal from the home of a relative specified in ORS 418.035 (2)
as a result of a judicial determination to the effect that
continuation therein would be contrary to the welfare of such
child;
    { - (B) - }  { +  (b) + } Who has been accepted for placement
and care by the Department of Human Services;
    { - (C) - }  { +  (c) + } Who has been placed in a foster
home or licensed nonprofit private child-caring agency as a
result of such determination; and
    { - (D) - }  { +  (d) + } Who received aid in or for the
month in which court proceedings leading to such determination
were initiated, or would have received such aid in or for such
month if application had been made therefor, or in the case of a
child who had been living with a relative specified in ORS
418.035 (2) within six months prior to the month in which such
proceedings were initiated, would have received such aid in or
for such month if in such month the child had been living with
and removed from the home of such a relative and application had
been made therefor.
  (3) 'Foster home' means a foster home   { - which - }
 { + that + } is certified by this state or has been approved, by
the agency of this state responsible for the certification of
foster homes, as meeting the standards established for such
certification.
    { - (4) 'Unemployment of parent' shall be defined by the
department and such definition may take into account definitions
used to establish the availability of federal funds for the
program of temporary assistance for needy families. - }
  SECTION 5. ORS 418.131 is amended to read:
  418.131. (1) A   { - person - }  { +  needy caretaker relative
 + }shall not receive aid  { + under ORS 418.040 or 418.185 + }
for more than a total of
  { - 24 months in any period of 84 consecutive months - }  { +
60 months + }.
    { - (2) For purposes of determining the 24-month limitation
described in subsection (1) of this section, a month in which one
parent of a family receiving aid under ORS 418.035 to 418.125
receives gross earnings in an amount equal to 173 times the
hourly minimum wage as provided in ORS 653.025 but in an amount
that does not exceed the eligibility requirements for aid under
ORS 418.035 to 418.125 shall be counted as two-fifths of a
month. - }
    { - (3) - }  { +  (2) + } The   { - 24-month - }  { +
60-month + } limitation described in subsection (1) of this
section shall not apply to  { - : - }   { + a month in which a
household member:
  (a) Is a victim of domestic violence as defined in ORS 411.117;
  (b) Has a certified learning disability;
  (c) Has a mental health condition or an alcohol or drug abuse
problem that prevents the individual from obtaining or
maintaining employment;
  (d) Has a disability as defined by the Department of Human
Services by rules that are consistent with the definition of
disability in the Americans with Disabilities Act;
  (e) Has a child with a disability that prevents the caretaker
relative from obtaining or maintaining employment for the number
of hours required to satisfy federally required participation
rates;
  (f) Receives aid under ORS 418.185 or section 9 of this 2007
Act unless the aid is funded with grants under Title IV-A of the
Social Security Act;
  (g) Is deprived of needed medical care;
  (h) Is subject to battery or extreme cruelty as defined by the
department by rule; or + }
    { - (a) A month in which a dependent child receiving aid
resides with a person other than the child's natural or adoptive
parent; - }
    { - (b) Up to three months within a two-year period for the
care of any family members who suffer serious health conditions
as defined in ORS 659A.150; or - }
    { - (c) A household with only one parent in which the basis
of eligibility is the incapacity of that parent or, in a
household with two parents, if both parents are incapacitated or
one parent is required in the home to care for the incapacitated
parent. - }
    { - (4) A person whose aid is terminated under subsection (1)
of this section may become eligible to receive aid, as determined
by the Department of Human Services, in excess of 24 months
if: - }
    { - (a) The former recipient is a dependent child in a
two-parent household and the primary wage earner in the household
dies; - }
    { - (b) The former recipient is a dependent child and the
child resides with a person other than the parent, parents or
legal guardian with whom the child lived at the time the child
was receiving aid; or - }
    { - (c) The former recipient is a parent of a dependent child
receiving aid and the department determines that the parent is
making diligent efforts in good faith to obtain permanent
employment. The number of families receiving aid under this
paragraph in any month may not exceed one percent of the total
number of families receiving aid in that month or 400 families,
whichever is greater. - }
    { - (5)(a) The time limitations described in subsection (1)
of this section do not apply to any person who is: - }
    { - (A) Required to participate in the JOBS Program unless
the person has been offered the opportunity to participate in an
education, employment or job training program including teen
parent programs as defined by the department. - }
    { - (B) Participating in an employment and training program
including any employment search activities required by the
program. - }
    { - (C) - }  { +  (i) Was + } enrolled at an educational
institution under section 1, chapter 212, Oregon Laws 2003.
    { - (b) - }  { +  (3) + } The Department  { + of Human
Resources + } shall report to each session of the Legislative
Assembly the number of families whose period of time receiving
aid has exceeded the time
  { - limitations of - }   { + limitation under + } subsection
(1) of this section because of the exceptions provided under
 { - paragraph (a) of this subsection - }  { +  subsection (2) of
this section + }. The report shall include information sufficient
to permit the Legislative Assembly to determine if the exceptions
make a significant contribution to increased self-sufficiency of
persons granted an   { - exemption - }  { + exception + }.
    { - (6)(a) - }  { +  (4)(a) + } The Department of Human
Services shall monitor the average period of time a person
receives aid and shall record such information by family size.
The department shall monitor the wages and benefits received by
an individual who becomes employed while receiving aid, including
medical and child care benefits. The department shall monitor and
record the rate at which persons who cease receiving aid for
employment subsequently apply for and receive aid.
  (b) The department shall report the results of the monitoring
required under paragraph (a) of this subsection to the
Legislative Assembly not later than the 15th day of each
legislative session.
  SECTION 6. ORS 418.155 is amended to read:
  418.155.   { - As used in ORS 418.150 to 418.172, unless the
context or a specially applicable statutory definition requires
otherwise: - }
    { - (1) 'Employment and training program' means a program for
placing as many individuals as is possible in employment. - }
    { - (2) 'JOBS Plus Program and work experience program' and '
on the job training' mean work site programs for those
individuals for whom such training is likely to lead to regular
employment. - }
    { - (3) 'JOBS program' means programs established by the
Department of Human Services, pursuant to the temporary
assistance for needy families program and rules adopted
thereunder. - }
   { +  (1) The Department of Human Services shall provide aid to
families, residing in Oregon, who become ineligible for temporary
assistance to needy families under ORS 418.040 or 418.185 due to
employment or increased hours of work.
  (2) If the caretaker relatives are employed for the number of
hours required each month to satisfy federally required
participation rates, families may continue to receive aid under
this section for 12 consecutive months or until the household's
income exceeds 250 percent of the federal poverty guidelines,
whichever comes first.
  (3) If a caretaker relative ceases to work a sufficient number
of hours to satisfy federally required participation rates, the
family may continue to receive aid under ORS 418.040 or 418.185.
  (4) The department shall by rule establish standards for
payments provided under this section.
  (5) In addition to money payments, the department shall provide
necessary support payments and services to assist the family in
achieving long-term financial stability. + }
  SECTION 7. ORS 418.185 is amended to read:
  418.185.  { + (1) + } Within the limits of funds expressly
appropriated   { - and specifically available - }  for a
temporary assistance for needy families program { +  for
two-parent families + }, such assistance shall be available for
aid to dependent children of unemployed parents.
   { +  (2) As a condition of receiving aid under this section,
parents must comply with an appropriate case plan developed
pursuant to ORS 418.040. + }
  SECTION 8.  { + (1) ORS 418.180 and 418.185 are added to and
made a part of ORS 418.035 to 418.172.
  (2) Section 9 of this 2007 Act is added to and made a part of
ORS 418.035 to 418.172. + }
  SECTION 9.  { + (1) There is created in the Department of Human
Services the temporary assistance to needy families SSI program.
The department shall provide aid under this section to families
who are eligible for temporary assistance to needy families under
ORS 418.040 and who include a caretaker relative who is unable to
maintain substantial gainful activity due to a disability or
combination of disabilities meeting the criteria of section 216
of the Social Security Act.
  (2) The department shall assist families receiving aid under
this section in qualifying for federal Supplemental Security
Income and shall assist with an administrative appeal, if
necessary.
  (3) The department shall adopt rules for determining the amount
of aid granted under this section, which shall be no less than
the combined total of 50 percent of the Supplemental Security
Income payment in effect at that time and the temporary
assistance to needy families grant amount for a family of that
size without an adult receiving aid.
  (4) Participation in the temporary assistance to needy families
SSI program must be voluntary. For recipients of aid under this
section, cooperation with the department to establish eligibility
for Supplemental Security Income shall satisfy the requirement to
participate in the job opportunity and basic skills program under
ORS 418.040.
  (5) The department may by rule establish methods to encourage
participants' full cooperation in the application process for
Supplemental Security Income. Methods may include penalties for
those who refuse, without good cause, to comply with a case plan
developed pursuant to ORS 418.040. + }
  SECTION 10. ORS 411.105 is amended to read:
  411.105. (1) A person seeking public assistance shall file an
application for public assistance with the Department of Human
Services. At the time of application, the applicant shall declare
to the department any circumstance that directly affects the
applicant's eligibility to receive assistance or the amount of
assistance available to the applicant. Upon the receipt of
property or income or upon any other change in circumstances that
directly affects the eligibility of the recipient to receive
assistance or the amount of assistance available to the
recipient, the applicant, recipient or other person in the
assistance household shall immediately notify the department of
the receipt or possession of such property or income, or other
change in circumstances. The department shall recover from the
recipient the amount of assistance improperly disbursed by reason
of failure to comply with the provision of this section.
  (2) The department may recover any cash assistance granted for
general assistance under ORS 411.710 to 411.730  { + or for the
adult portion of the temporary assistance to needy families
granted under ORS 418.035 to 418.172 + } that has been paid to
any recipient when that recipient is presently receiving or
subsequently receives Supplemental Security Income. The amount of
recovery shall be limited to the total amount of Supplemental
Security Income that was received for the same time period that
the general assistance was being paid.
  (3) Nothing in subsection (1) or (2) of this section shall be
construed as to prevent the department from entering into a
compromise agreement for recovery of assistance improperly
disbursed, if the department determines that the administration
and collection costs involved would exceed the amount that can
reasonably be expected to be recovered.
  SECTION 11. ORS 25.245 is amended to read:
  25.245. (1) Notwithstanding any other provision of Oregon law,
a parent who is eligible for and receiving cash payments
  { - under Title IV-A of the Social Security Act - }  { +  under
the temporary assistance to needy families program under ORS
418.035 to 418.172 + }, the general assistance program as
provided in ORS chapter 411 or a general assistance program of
another state or tribe, the Oregon Supplemental Income Program or
the federal Supplemental Security Income Program shall be
rebuttably presumed unable to pay child support and a child
support obligation does not accrue unless the presumption is
rebutted.
  (2) Each month, the Department of Human Services shall identify
those persons receiving cash payments under the programs listed
in subsection (1) of this section that are administered by the
State of Oregon and provide that information to the
administrator. If benefits are received from programs listed in
subsection (1) of this section that are administered by other
states, tribes or federal agencies, the obligor shall provide the
administrator with written documentation of the benefits. The
Department of Human Services shall adopt rules to implement this
subsection.
  (3) The administrator shall refer to the information provided
in subsection (2) of this section prior to establishing any child
support obligation. Within 30 days following identification of
persons under subsection (2) of this section, the entity
responsible for support enforcement services under ORS 25.080
shall provide notice of the presumption to the obligee and
obligor and shall inform all parties to the support order that,
unless a party objects as provided in subsection (4) of this
section, child support shall cease accruing beginning with the
support payment due on or after the date the obligor first begins
receiving the cash payments and continuing through the support
payment due in the last month in which the obligor received the
cash payments.  The entity responsible for support enforcement
services shall serve the notice on the obligee in the manner
provided for the service of summons in a civil action or by
certified mail, return receipt requested, and shall serve the
notice on the obligor by first class mail to the obligor's
last-known address. The notice shall specify the month in which
cash payments are first made and shall contain a statement that
the administrator represents the state and that low cost legal
counsel may be available.
  (4) A party may object to the presumption by sending an
objection to the entity responsible for support enforcement
services under ORS 25.080 within 20 days after the date of
service of the notice. The objection must describe the resources
of the obligor or other evidence that might rebut the presumption
of inability to pay child support. The entity receiving the
objection shall cause the case to be set for a hearing before a
court or an administrative law judge. The court or administrative
law judge may consider only whether the presumption has been
rebutted.
  (5) If no objection is made, or if the court or administrative
law judge finds that the presumption has not been rebutted, the
Department of Justice shall discontinue billing the obligor for
the period of time described in subsection (3) of this section
and no arrearage shall accrue for the period during which the
obligor is not billed. In addition, the entity providing support
enforcement services shall file with the circuit court in which
the support order or judgment has been entered a copy of the
notice described in subsection (3) of this section or, if an
objection is made and the presumption is not rebutted, a copy of
the administrative law judge's order.
  (6)(a) Within 30 days after the date the obligor ceases
receiving cash payments under a program listed in subsection (1)
of this section, the Department of Justice shall provide notice
to all parties to the support order:
  (A) Specifying the last month in which a cash payment was made;
  (B) Stating that the payment of those benefits has terminated
and that by operation of law billing and accrual of support
resumes; and
  (C) Informing the parties of their rights to request a review
and modification of the support order based on a substantial
change in circumstance or pursuant to ORS 25.287 or any other
provision of law.
  (b) The notice shall include a statement that the administrator
represents the state and that low cost legal counsel may be
available.
  (c) The entity providing enforcement services shall file a copy
of the notice required by paragraph (a) of this subsection with
the circuit court in which the support order or judgment has been
entered.
  (7) Receipt by a child support obligor of cash payments under
any of the programs listed in subsection (1) of this section
shall be sufficient cause for a court or administrative law judge
to allow a credit and satisfaction against child support
arrearage for months that the obligor received the cash payments.
  (8) The notice and finding of financial responsibility required
by ORS 416.415 shall include notice of the presumption,
nonaccrual and arrearage credit rights provided for in this
section.
  (9) The presumption, nonaccrual and arrearage credit rights
created by this section shall apply whether or not child support
enforcement services are being provided under Title IV-D of the
Social Security Act.
  (10) Application of the presumption, nonaccrual and arrearage
credit rights created by this section does not constitute a
modification but does not limit the right of any party to seek a
modification of a support order based upon a change of
circumstances or pursuant to ORS 25.287 or any other provision of
law. In determining whether a change in circumstances has
occurred or whether two years have elapsed since entry of a
support order, the court or administrative law judge may not
consider any action taken under this section as entry of a
support order. The presumption stated in subsection (1) of this
section applies in any modification proceeding.
  SECTION 12. ORS 418.042 is amended to read:
  418.042. (1) Aid, as defined in ORS 418.035, may not be granted
to, or on behalf of, any applicant or recipient and for as long
as the applicant or recipient refuses to assign to the state any
rights to support from any other person such applicant may have
personally or in behalf of any other family member for whom the
applicant is applying for or receiving aid, and that have accrued
at any time such assignment is executed. If aid is paid and
received for the support of a child, the rights to child support
that any person may have for the child are deemed to have been
assigned by operation of law to the state. Notice of the
assignment by operation of law shall be given to the applicant at
the time of application for public assistance, and shall be given
to any obligee who may hold some interest in such support rights
by depositing a notice in the United States mail, postage
prepaid, addressed to the last-known address of such person.
Assignment of support rights to the state shall be as set forth
in rules adopted by the Department of Human Services and the
Department of Justice.
  (2) Except as otherwise provided in this subsection, an
applicant or recipient who receives aid as defined in ORS 418.035
shall cooperate with the Department of Human Services and the
Department of Justice in establishing the paternity of the
applicant's or recipient's child born out of wedlock and in
obtaining support or other payments or property due the applicant
or child. An applicant or recipient is not required to cooperate
if there is good cause or some other exception to the cooperation
requirement that takes into account the best interest of the
child. The Department of Human Services shall adopt rules
defining good cause, other exceptions to cooperation and
noncooperation by an applicant or recipient, and setting the
sanction for noncooperation. The sanction may include total
ineligibility of the family for aid, but in no situation may the
sanction be less than a 25 percent reduction of the monthly grant
amount. At the time an applicant applies for aid, the Department
of Human Services shall inform the applicant, in writing, of the
requirement of and exceptions to cooperation and the sanctions
for noncooperation, and shall inform recipients, in writing,
whenever eligibility for aid is redetermined.
   { +  (3) This section shall apply to recipients of aid under
ORS 418.185 and section 9 of this 2007 Act only as long as the
aid is funded with federal grants under Title IV-A of the Social
Security Act. + }
  SECTION 13. ORS 411.010 is amended to read:
  411.010. As used in this chapter and in other statutes
providing for assistance and services to needy persons, unless
the context or a specially applicable statutory definition
requires otherwise:
  (1) 'Department' means the Department of Human Services.
  (2) 'General assistance' means assistance or service of any
character provided to needy persons not otherwise provided for to
the extent of such need and the availability of funds, including
medical, surgical and hospital or other remedial care.
  (3) 'Public assistance' means the following types of
assistance:
  (a) Temporary assistance for needy families granted under ORS
418.035 to   { - 418.125 - }  { +  418.172 + };
  (b) General assistance granted under ORS 411.710 to 411.730;
  (c) Medical assistance;
  (d) Assistance provided by the Oregon Supplemental Income
Program;
  (e) General assistance other than general assistance granted
under ORS 411.710 to 411.730; and
  (f) Any other functions that may be delegated to the Director
of Human Services by or in accordance with federal and state
laws.
  SECTION 14. ORS 411.070 is amended to read:
  411.070. The Department of Human Services shall by rule fix
statewide uniform standards for all public assistance programs
and effect uniform observance thereof throughout the state. In
establishing statewide standards for public assistance, the
department, within the limits of available funds, shall:
  (1) Take into consideration all basic requirements for a
standard of living compatible with decency and health, including
food, shelter, clothing, fuel, public utilities,
telecommunications service, medical care and other essential
items and, upon the basis of investigations of the facts, shall
provide budgetary guides for determining minimum costs of meeting
such requirements.
  (2) Develop standards for making payments and providing support
services   { - for the employment and self-sufficiency skills
programs - }  { +  in the job opportunity and basic skills
program + } described in ORS 418.040.
  SECTION 15. ORS 411.120 is amended to read:
  411.120. The Department of Human Services may, subject to the
allotment system provided for in ORS 291.234 to 291.260, expend
such sums as are required to be expended in this state to provide
public assistance excluding medical assistance. Expenditures for
public assistance include, but are not limited to, expenditures
for the following purposes:
  (1) General assistance to needy persons and their dependents.
  (2) Temporary assistance for needy families granted under ORS
418.035 to   { - 418.125 - }  { +  418.172 + }, including
services to relatives with whom dependent children applying for
or receiving temporary assistance for needy families are living
in order to help such relatives attain the maximum self-support
or self-care consistent with the maintenance of continuing
parental care and protection or in order to maintain and
strengthen family life for such children.
  (3) Assistance provided by the Oregon Supplemental Income
Program.
  (4) General assistance granted under ORS 411.710 to 411.730.
  (5) Carrying out the provisions of law for child welfare
purposes.
  (6) Scholarships or grants for qualified recipients to provide
them education and professional, technical or other helpful
training, payable to a publicly supported career school or
educational institution on behalf of the recipient.
  (7) Other purposes for which the department is authorized to
expend funds, including the administration expenses of the
department.
  (8) Carrying out the provisions of ORS 411.116.
  SECTION 16. ORS 414.025 is amended to read:
  414.025. As used in this chapter, unless the context or a
specially applicable statutory definition requires otherwise:
  (1) 'Category of aid' means assistance provided by the Oregon
Supplemental Income Program, temporary assistance for needy
families granted under ORS 418.035 to   { - 418.125 - }  { +
418.172 + } or federal Supplemental Security Income payments.
  (2) 'Categorically needy' means, insofar as funds are available
for the category, a person who is a resident of this state and
who:
  (a) Is receiving a category of aid.
  (b) Would be eligible for, but is not receiving a category of
aid.
  (c) Is in a medical facility and, if the person left such
facility, would be eligible for a category of aid.
  (d) Is under the age of 21 years and would be a dependent child
under the program for temporary assistance for needy families
except for age and regular attendance in school or in a course of
professional or technical training.
  (e)(A) Is a caretaker relative named in ORS 418.035 (2)(a)(C)
who cares for a dependent child who would be a dependent child
under the program for temporary assistance for needy families
except for age and regular attendance in school or in a course of
professional or technical training; or
  (B) Is the spouse of such caretaker relative and fulfills the
requirements of ORS 418.035 (1).
  (f) Is under the age of 21 years, is in a foster family home or
licensed child-caring agency or institution under a purchase of
care agreement and is one for whom a public agency of this state
is assuming financial responsibility, in whole or in part.
  (g) Is a spouse of an individual receiving a category of aid
and who is living with the recipient of a category of aid, whose
needs and income are taken into account in determining the cash
needs of the recipient of a category of aid, and who is
determined by the Department of Human Services to be essential to
the well-being of the recipient of a category of aid.
  (h) Is a caretaker relative named in ORS 418.035 (2)(a)(C) who
cares for a dependent child receiving temporary assistance for
needy families or is the spouse of such caretaker relative and
fulfills the requirements of ORS 418.035 (1).
  (i) Is under the age of 21 years, is in a youth care center and
is one for whom a public agency of this state is assuming
financial responsibility, in whole or in part.
  (j) Is under the age of 21 years and is in an intermediate care
facility which includes institutions for the mentally retarded;
or is under the age of 22 years and is in a psychiatric hospital.
  (k) Is under the age of 21 years and is in an independent
living situation with all or part of the maintenance cost paid by
the Department of Human Services.
  (L) Is a member of a family that received temporary assistance
for needy families in at least three of the six months
immediately preceding the month in which such family became
ineligible for such assistance because of increased hours of or
increased income from employment. As long as the member of the
family is employed, such families will continue to be eligible
for medical assistance for a period of at least six calendar
months beginning with the month in which such family became
ineligible for assistance because of increased hours of
employment or increased earnings.
  (m) Is an adopted person under 21 years of age for whom a
public agency is assuming financial responsibility in whole or in
part.
  (n) Is an individual or is a member of a group who is required
by federal law to be included in the state's medical assistance
program in order for that program to qualify for federal funds.
  (o) Is an individual or member of a group who, subject to the
rules of the department and within available funds, may
optionally be included in the state's medical assistance program
under federal law and regulations concerning the availability of
federal funds for the expenses of that individual or group.
  (p) Is a pregnant woman who would be eligible for temporary
assistance for needy families including such aid based on the
unemployment of a parent, whether or not the woman is eligible
for cash assistance.
  (q) Would be eligible for temporary assistance for needy
families pursuant to 42 U.S.C. 607 based upon the unemployment of
a parent, whether or not the state provides cash assistance.
  (r) Except as otherwise provided in this section and to the
extent of available funds, is a pregnant woman or child for whom
federal financial participation is available under Title XIX of
the federal Social Security Act.
  (s) Is not otherwise categorically needy and is not eligible
for care under Title XVIII of the federal Social Security Act or
is not a full-time student in a post-secondary education program
as defined by the Department of Human Services by rule, but whose
family income is less than the federal poverty level and whose
family investments and savings equal less than the investments
and savings limit established by the department by rule.
  (3) 'Income' has the meaning given that term in ORS 411.704.
  (4) 'Investments and savings' means cash, securities as defined
in ORS 59.015, negotiable instruments as defined in ORS 73.0104
and such similar investments or savings as the Department of
Human Services may establish by rule that are available to the
applicant or recipient to contribute toward meeting the needs of
the applicant or recipient.
  (5) 'Medical assistance' means so much of the following medical
and remedial care and services as may be prescribed by the
Department of Human Services according to the standards
established pursuant to ORS 414.065, including payments made for
services provided under an insurance or other contractual
arrangement and money paid directly to the recipient for the
purchase of medical care:
  (a) Inpatient hospital services, other than services in an
institution for mental diseases;
  (b) Outpatient hospital services;
  (c) Other laboratory and X-ray services;
  (d) Skilled nursing facility services, other than services in
an institution for mental diseases;
  (e) Physicians' services, whether furnished in the office, the
patient's home, a hospital, a skilled nursing facility or
elsewhere;
  (f) Medical care, or any other type of remedial care recognized
under state law, furnished by licensed practitioners within the
scope of their practice as defined by state law;
  (g) Home health care services;
  (h) Private duty nursing services;
  (i) Clinic services;
  (j) Dental services;
  (k) Physical therapy and related services;
  (L) Prescribed drugs, including those dispensed and
administered as provided under ORS chapter 689;
  (m) Dentures and prosthetic devices; and eyeglasses prescribed
by a physician skilled in diseases of the eye or by an
optometrist, whichever the individual may select;
  (n) Other diagnostic, screening, preventive and rehabilitative
services;
  (o) Inpatient hospital services, skilled nursing facility
services and intermediate care facility services for individuals
65 years of age or over in an institution for mental diseases;
  (p) Any other medical care, and any other type of remedial care
recognized under state law;
  (q) Periodic screening and diagnosis of individuals under the
age of 21 years to ascertain their physical or mental
impairments, and such health care, treatment and other measures
to correct or ameliorate impairments and chronic conditions
discovered thereby;
  (r) Inpatient hospital services for individuals under 22 years
of age in an institution for mental diseases; and
  (s) Hospice services.
  (6) 'Medical assistance' includes any care or services for any
individual who is a patient in a medical institution or any care
or services for any individual who has attained 65 years of age
or is under 22 years of age, and who is a patient in a private or
public institution for mental diseases. 'Medical assistance '
includes 'health services' as defined in ORS 414.705. 'Medical
assistance' does not include care or services for an inmate in a
nonmedical public institution.
  (7) 'Medically needy' means a person who is a resident of this
state and who is considered eligible under federal law for
medically needy assistance.
  (8) 'Resources' has the meaning given that term in ORS 411.704.
For eligibility purposes, 'resources' does not include charitable
contributions raised by a community to assist with medical
expenses.
  SECTION 17. ORS 418.075 is amended to read:
  418.075. Aid  { - , as defined in ORS 418.035, - }  shall not
be granted with respect to, or on behalf of, a dependent child
 { - as defined in ORS 418.070 (2)(a) - }  { +  under ORS
418.185 + } if, and for as long as,   { - the - }   { + an + }
unemployed parent of such child refuses without good cause to
accept employment in which the unemployed parent is able to
engage and which is offered through any employment office defined
in ORS 657.010 or which is otherwise offered by any employer if
such offer is determined by the Department of Human Services
after notification by such employer to be a bona fide offer of
such employment.
  SECTION 18. ORS 418.085 is amended to read:
  418.085. During any period in which aid may be granted with
respect to, or on behalf of, a dependent child   { - as defined
in ORS 418.070 (2)(a) - }  { +  who is deprived of parental
support by reason of the unemployment of a parent + }, the
Department of Human Services and the Director of the Employment
Department shall enter into cooperative arrangements looking
toward employment of the unemployed parent of any such child,
shall provide for the registration and periodic reregistration of
such parent at employment offices established pursuant to ORS
657.705 to 657.725 and shall, with respect to such parent, effect
maximum utilization of the job placement services and other
services and facilities of such offices.
  SECTION 19. ORS 418.095 is amended to read:
  418.095. (1) Community work and training programs, as defined
in ORS 411.855, may be made available to persons whose needs are
included in a grant of public assistance pursuant to ORS 418.035
to 418.172.
 
  (2) Subject to rules and regulations of the Department of Human
Services, the employable applicant or recipient of aid who is a
parent of a dependent child defined in ORS 418.035   { - or
418.070 - }  may be required to participate without compensation
in a community work and training program as a condition to a
grant of aid or other public assistance for the benefit of the
applicant or recipient or those to whom the applicant or
recipient owes a legal duty of support, and for periods of time
limited by the amount of such aid or other assistance, in cash or
in kind, provided through such grant. However, if any of the
provisions of this subsection are found to be not in conformity
with the federal Social Security Act, or with any of the rules,
regulations or requirements promulgated thereunder, such
provisions are inoperative to the extent that they are not so in
conformity.
  SECTION 20. ORS 418.132 is amended to read:
  418.132. (1) A person who is a minor parent of a child and is
receiving or applying for aid as defined in ORS 418.035 shall
reside with the person's parent, parents or legal guardian. The
person may substitute an alternative supervised living
arrangement if the Department of Human Services determines that
it is unsafe or impractical for the person to reside with the
person's parent, parents or legal guardian. Failure of a minor
parent applying for or receiving temporary assistance for needy
families  { + under ORS 418.035 to 418.172 + } to reside with the
person's parent, parents or legal guardian or in an alternative
supervised living arrangement shall result in the termination of
aid.
  (2) The provisions of subsection (1) of this section shall not
apply to an applicant for or recipient of temporary assistance
for needy families when circumstances or conditions exist that
the department by rule establishes are not in the best interest
of the child.
  (3) If a person who is a minor parent receiving aid and who is
not living with the person's parent, parents or legal guardian
subsequently returns to reside with the parent, parents or
guardian and is determined ineligible to receive aid by reason of
the parent's or guardian's income, the minor parent shall be
eligible to receive such services, including medical care, as the
department determines are necessary to allow the minor parent to
attain a high school diploma or the equivalent, or to participate
in   { - programs to develop employment or self-sufficiency
skills - }  { +  the job opportunity and basic skills program
described  + }  { - as described by the department - }  in ORS
418.040.
  SECTION 21. ORS 418.160 is amended to read:
  418.160. The Department of Human Services shall have the
responsibility and authority to provide such services as are
necessary to maintain the intent of and compliance with federal
requirements for the programs   { - defined in - }
 { + under + } ORS  { + 418.040 and + } 418.155.
  SECTION 22. ORS 418.163 is amended to read:
  418.163. The Department of Human Services shall have the
responsibility and authority to provide such services and engage
in such cooperative and coordinated efforts with the Employment
Department and other appropriate agencies as are necessary to
maintain the intent of and compliance with federal requirements
for the programs   { - defined in ORS 418.155 - }  { +  under ORS
418.040 and 418.185 + }.
  SECTION 23. Section 1, chapter 212, Oregon Laws 2003, is
amended to provide:
   { +  Sec. 1. + } (1) Subject to the limitation in section
2 { + , chapter 212, Oregon Laws 2003 + }   { - of this 2003
Act - } , a parent who applies for or receives temporary
assistance for needy families under ORS 418.035 to
 { - 418.125 - }  { +  418.172 and + } who meets the criteria
described in subsection (2) of this section may enroll in and
attend a two-year or four-year program at an educational
institution as an allowable work activity for purposes of ORS
418.035 to   { - 418.125 - }  { + 418.172 + }.
  (2) To enroll in and attend an educational institution as an
allowable work activity, a parent must:
  (a) Be accepted for full-time attendance into or be enrolled
full-time at an educational institution;
  (b) Demonstrate that completion of the educational program is
likely to result in employment that provides the wages and
benefits necessary for the parent to support the parent's family
without temporary assistance for needy families; and
  (c) Make satisfactory academic progress, as defined by the
educational institution, toward a degree or certificate.
  (3) A parent who is enrolled at an educational institution
under this section shall receive temporary assistance for needy
families under ORS 418.035 to  { + 418.172 and is + }
 { - 418.125 as well as be - }  eligible for all other support
services under the temporary assistance for needy families
program. Assistance under this section does not include tuition
and fees associated with enrollment at an educational
institution.
  (4) The Department of Human Services shall inform all parents
applying for or participating in the temporary assistance for
needy families program of the option to enroll in an educational
institution and the requirements under subsection (2) of this
section.
  (5) The department shall adopt rules to implement and
administer this section.
  (6) As used in this section, 'educational institution' has the
meaning given that term in ORS 348.105.
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