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MINUTES OF THE

WORKFORCE SERVICES INTERIM COMMITTEE

November 18, 1998 - 9:00 a.m. Room 414 State Capitol




Members Present:
    Sen. Robert F. Montgomery, Chair    Rep. Steve Barth
    Rep. Orville D. Carnahan, Chair    Rep. Duane Bourdeaux
    Sen. Lorin V. Jones    Rep. Margaret Dayton
    Sen. Robert M. Muhlestein    Rep. Lloyd W. Frandsen
    Sen. Millie M. Peterson    Rep. Brent H. Goodfellow
    Rep. Sheryl L. Allen     Rep. J. Brent Haymond
         Rep. Bryan D. Holladay

Members Absent:     Staff Present:
    Rep. Jeff Alexander    John Q. Cannon,
Sen. Blaze D. Wharton    Research Analyst
     R. Chet Loftis,
        Associate General Counsel
Members Excused:      Barbara A. Teuscher,
Rep. Nora Stephens             Legislative Secretary

Note: Names of others present and copies of information distributed at the meeting are on file in the Office of Legislative Research and General Counsel.

1.     Call to Order and Approval of Minutes of Meeting Held October 21, 1998

    Chair Carnahan called the meeting to order at 9:15 a.m. The committee took no action on
the October 21, 1998 minutes.

2.     Staff Report: Current Workforce Services - Related Legislation

    Mr. Loftis distributed a handout entitled "Highlights of Federal Budget." He said on
October 21, 1998, President Clinton signed into law P.L. 105-77, an omnibus appropriations bill that contains eight of the 13 appropriation measures that Congress failed to resolve earlier in the session totaling $518 billion. Mr. Loftis then explained failed efforts to reduce the Temporary Assistance for Needy Families (TANF) block grant. He then commented on other types of block grants. Mr. Loftis referred to his second handout entitled "Welfare Reform Project." The handout reflects ideas from other states.

3. Annual Report: Families, Agencies, and Communities Together for Children and Youth at Risk (FACT) - Mr. Robert Gross, Executive Director, Department of Workforce Services and FACT Council member, and Ms. Marie Christman, FACT Management Team, addressed committee members. Mr. Gross distributed a handout entitled "FACT: Report to the

Legislative Interim Committee," and reported on activities over the past year. He focused on
Minutes of Workforce Services Interim Committee
November 18, 1998
Page 2

the FACT initiative and discussed its success during FY'98 and FY'99. Mr. Gross talked about collaborative efforts throughout the state and what is being done on the local level. With an equal investment of state dollars, site-based FACT teams served more than 5,500 children and youth.

4. Report: Child Care Task Force (includes presentation of proposed legislation) - Sen. Leonard Blackham and Rep. Sheryl Allen, Chairs of the Child Care Task Force, discussed recommendations for additional funding. Handouts were distributed to the committee. Sen. Blackham referred to several letters being sent to the Appropriation Committees. He then reviewed the Child Care Task Force's recommendations to the Legislature and health care needs for day care providers. Items of discussion included a rating system, uniform municipal zoning for child care providers, quality-based funding, and the availability of health insurance to child care employees and their dependents.

Ms. Victoria Hunsaker, Project Specialist, Office of Child Care, attending the meeting for Ms. Pat Kreher, Department of Workforce Services, explained the cost of accreditation and how much would be deferred. Ms. Hunsaker indicated that the Office of Child Care is looking at scholarships to be made available. She mentioned that the cash incentives do not cover the entire cost of some accreditations.

Rep. Allen focused on a concept, endorsed by the task force to work with the League of Cities and Towns and different child care organizations to encourage uniform municipal provisions for child care provider services. A slide show was presented on legislation proposed by the Legislative Child Care Task Force focusing on the goal, approach, and outcome of each piece of legislation. Discussion and committee action followed.

CHILD LITERACY PROGRAMS -

MOTION: Sen. Peterson moved to approve "Child Literacy Programs" as a committee bill. The motion passed with Rep. Dayton voting against the motion. Sen. Montgomery was absent for the vote.

CHILD CARE PROVIDER CRIMINAL BACKGROUND CHECK AMENDMENTS -

    MOTION: Sen. Peterson moved to approve "Child Care Provider Criminal Background
Check Amendments" as a committee bill. The motion passed unanimously.

CREDIT FOR CONTRIBUTIONS TO CHILD CARE -

    MOTION: Rep. Allen moved to approve "Credit for Contributions to Child Care" as a
committee bill. The motion passed. Sen. Muhlestein and Rep. Dayton voted no.
Minutes of Workforce Services Interim Committee
November 18, 1998
Page 3

    MOTION: Rep. Allen moved to reconsider the committee's action on the "Child Care
Provider Criminal Background Check Amendments." The motion passed unanimously.

    MOTION: Rep. Allen moved on Page 2 Line 38 to change FBI to BCI. Rep. Allen
withdrew the motion.

    MOTION: Rep. Haymond moved to delete lines 37 and 38. The motion failed with Rep.
Haymond voting for the motion.

MOTION: Sen. Peterson moved to pass the legislation out favorably as a committee bill. The motion passed unanimously.

CHILD CARE COMMISSION RESOLUTION -

    MOTION: Rep. Goodfellow moved to approve "Child Care Commission Resolution" as a
committee bill. The motion passed unanimously.

CHILD CARE TASK FORCE REAUTHORIZATION -

    MOTION: Sen. Peterson moved to approve "Child Care Task Force Reauthorization" as a
committee bill. The motion passed with Rep. Dayton voting against the motion.

5.     Proposed Legislation -

a. PUBLIC ASSISTANCE ELIGIBILITY, Sen. Peterson, sponsor of the bill discussed the legislation and requested the committee consider this legislation regarding eligibility for public assistance. Committee discussion and public comment followed.

    MOTION: Sen. Muhlestein moved to amend on page 2, line 36, after the word "needs"
insert "and does not exceed a fair market value of $20,000"

SUBSTITUTE MOTION: Rep. Goodfellow moved to amend on page 2, line 36 after the word "needs" insert and to not exceed equity of the $20,000. The motion failed with Rep. Goodfellow and Sen. Peterson voting in favor.

SUBSTITUTE MOTION: Sen. Peterson moved that on line 36, language be prepared indicating that the market value cannot be more than $20,000 and that the equity cannot be more than $10,000. The motion failed with Sen. Muhlestein, Rep. Goodfellow and Sen. Peterson voting in favor of the motion.

    Chair Montgomery referred committee members back to Sen. Mulstein's original motion

Minutes of Workforce Services Interim Committee
November 18, 1998
Page 4

reflecting a $20,000 market value.

    Ms. Helen Thatcher, Department of Workforce Services, said the issue is that individuals
need a car that runs.

Rep. Carnahan said he does not think it is necessary to put a value on the car and spoke against the motion.

Mr. Loftis read the original motion for clarification. Lines 35-36 would read "passenger vehicle" means a seIf-propelled, two-axle vehicle intended primarily for operation on highways
and used bv an applicant or recipient to meet basic transportation needs and does not exceed a fair market value of $20,000.

SUBSTITUTE MOTION: Sen. Jones moved to replace $20,000 with $12,000. The motion failed with Sen. Jones voting in favor.

MOTION: Chair Montgomery called for a vote on Sen. Muhlestein's original motion. The motion passed with Sen. Muhlestein, Sen. Montgomery, Rep. Haymond, Rep. Allen, and Rep. Holladay voting against the motion.

    MOTION: Sen. Peterson moved to pass the bill out as a committee bill. The motion
passed with Sen. Muhlestein voting in opposition.

b. Department of Workforce Services, 1999 Legislative Issues

    Mr. Mason Bishop, Department of Workforce Services, discussed the Department of
Workforce Services, 1999 legislative issues and proposed legislation.

Changes as a Result of the Federal Workforce Investment Act and other Technical
Revisions - Mr. Bishop referred to 35A-1-206. State Council on Workforce Services -
Appointment -- Membership -- Terms of members -- Compensation and reviewed the changes.

Unemployment Insurance Changes - Mr. Bishop explained the proposed changes made to the Unemployment Insurance Program. He then referred to 35A-1-502. Civil liability for overpayment and explained the proposed changes and said the current unemployment insurance fraud penalties are so substantial that it does not create an incentive for individuals to pay back those penalties.

    Mr. Jim Finch, Director of Unemployment Insurance, Department of Workforce Services,
clarified what the department is asking in regard to insurance. Committee discussion followed.

Minutes of Workforce Services Interim Committee
November 18,1998
Page 5

Chair Montgomery said in accordance with the department's wishes there will be no action taken on the legislation at this time.

Welfare Time Limit - Mr. Mason reported that this bill will make a technical correction to the three-year Family Employment Program and will not have a substantive impact on time limits. He then explained two time-limit extensions. The technical change is to remove the phrase "while on public assistance."

6. Implementation of "Characteristics of Families Receiving Cash Assistance"Report
(Rep. Dayton) - Discussion with Department of Workforce Services -

Rep. Dayton informed the committee of questions she would like to have clarified and turned the remainder of the time over to Mr. Bishop. He distributed a handout entitled "Department of Workforce Services: Statewide Cases Served Report" and explained the Statewide-Case Barriers identified for child care. Mr. Bishop discussed the prevalence. of child care barriers to work for families with children in paid care during the past year.

7.     Report: Business Data Collection (Rep. Frandsen) -

    Rep. Frandsen discussed research data from other states. While mental health services are
being provided, he said a better job could be done by getting the mental health community to focus on a job direction when helping individuals. Committee discussion followed.

MOTION: Rep. Frandsen moved to have staff draft a letter to the Executive Appropriations Committee suggesting that they consider an intent statement directed to the department, and that the issues are given priority once the compliance issue is resolved. The motion passed unanimously. Rep. Allen and Sen. Petersen were absent for the vote.

Sen. Jones asked if there is data on deadbeat dads. Ms. Robin Arnold-Williams indicated that there has been a significant increase in collections from deadbeat dads and that she would provide the data for him.

8. Committee Business - Mr. Bob C. Gross, and Ms. Helen Thatcher, Department of
Workforce Services, discussed an article that appeared in the Salt Lake Tribune.

Sen. Montgomery thanked committee members for their service to the committee.

9. Adjourn - MOTION: Sen. Jones moved to adjourn the meeting at 12:00 p.m. The motion
passed unanimously.
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