In this subtitle the following words have the meanings indicated. “Community service” means a structured program with embedded activities in which individuals perform unpaid work: for the direct benefit of the community; and under the guidance and support of a public or nonprofit organization. “FIP” means the Family Investment Program. “Nonprofit organization” means a religious, charitable, or volunteer organization that is exempt from taxation under § 501(c) of the Internal Revenue Code. “Recipient” means each individual in a FIP case. “Temporary cash assistance” means the cash assistance component of the FIP that is funded wholly or partly through Title IV, Part A, of the Social Security Act. “Third party payee” means: an individual that the Department approves; a nonprofit organization; a for–profit organization; or a governmental unit, including a local department. “Transitional assistance” means assistance provided to a recipient whose temporary cash assistance has been terminated for noncompliance with FIP requirements. “Work activity” means: job search activity; subsidized employment in either the public or private sector; work experience; on–the–job training; community service; training directly related to employment; or education directly related to employment. “Work experience” means unpaid work activity, performed in return for temporary cash assistance, that provides an individual with an opportunity to acquire the general skills, knowledge, and work habits necessary to obtain employment.

There is a Family Investment Program in the Department. The primary purpose of this subtitle is to support family efforts to achieve and maintain self-sufficiency through services and financial aid geared to individual family needs.

The Secretary shall: implement a FIP that meets the requirements of this subtitle and federal law; supervise the administration by local departments of the FIP under this subtitle; cooperate with the federal government in matters of mutual concern pertaining to federal funding for the FIP; and adopt regulations to carry out this subtitle.

In this section the following words have the meanings indicated. “Children of current or former recipients” means minors who: are at least 14 years old; and reside with current or former recipients of benefits. “Former recipient” means an individual who received benefits under FIP in the past 5 years. “Foster youth” means an individual who: is an adult in out–of–home care under the responsibility of the State; or is an adult under the age of 25 years; and was in out–of–home care under the responsibility of the State on the individual’s 18th birthday. “Obligor” has the meaning stated in § 10–101 of the Family Law Article. The Secretary of Budget and Management, with the assistance of the Secretary, shall develop and implement a plan for hiring current and former recipients, children of current or former recipients, foster youth, and obligors by the principal departments within the Executive Branch of State government. For each principal department, the plan shall include: the units that most easily could hire current and former recipients, children of current or former recipients, foster youth, and obligors; the positions most suitable for current and former recipients, children of current or former recipients, foster youth, and obligors; a proposal for recruiting current and former recipients, children of current or former recipients, foster youth, and obligors; job retention strategies; and a target number of current and former recipients, children of current or former recipients, foster youth, and obligors to be recruited. In consultation with the Secretary, the Secretary of Budget and Management shall report, subject to § 2–1257 of the State Government Article, to the Senate Finance Committee and the House Appropriations Committee of the General Assembly: on or before January 1, 2010, on the development of the hiring plan for current and former recipients, children of current or former recipients, foster youth, and obligors; and on or before November 1 of each year, on the number of recipients, children of current or former recipients, foster youth, and obligors hired and retained by the principal departments within the Executive Branch of State government. Working with appropriate local government officials, the Secretary and each local director shall develop and implement a local government hiring plan under which local governments may hire current and former recipients, children of current or former recipients, foster youth, and obligors. For each jurisdiction, the local government hiring plan shall include: a list of the units that most easily could hire current and former recipients, children of current or former recipients, foster youth, and obligors; a list of the employment positions most suitable for current and former recipients, children of current or former recipients, foster youth, and obligors; proposals to recruit current and former recipients, children of current or former recipients, foster youth, and obligors; employment retention strategies; and a target number of current and former recipients, children of current or former recipients, foster youth, and obligors to be recruited. Each local director shall: develop and submit the local government hiring plan in accordance with a schedule and format that the Secretary determines; implement in a timely manner the proposals and strategies in the local government hiring plan; achieve the target numbers in the local government hiring plan; and develop and submit reports to the Secretary in accordance with a schedule and format that the Secretary determines. On or before November 1 of each year and in consultation with the Maryland Association of Counties, the Secretary shall report, subject to § 2–1257 of the State Government Article, to the Senate Finance Committee and the House Appropriations Committee of the General Assembly, on: the development of the local government hiring plan; and the number of current and former recipients, children of current or former recipients, foster youth, and obligors hired and retained by local governments. The Secretary shall: establish a process through which a person may recommend a vocational, workforce training, or job placement program for inclusion in the database developed and maintained under § 15–160 of the Health – General Article; and if appropriate, forward a recommendation made under item (1) of this subsection to the Maryland Department of Health for inclusion in the database.

In providing assistance under this subtitle, the Department may contract with: charitable organizations; private organizations; religious organizations; and institutions of higher education. If the Department contracts with a State, local, or nongovernmental contractor, the contractor shall provide individuals with disabilities access and equal opportunity to participate in the benefits of the services, programs, and activities provided by the contractor in accordance with the federal Americans with Disabilities Act, including reasonable accommodations necessary to participate in FIP. For any contract with a nongovernmental entity in place as of October 1, 2024, the Department annually shall review each contract to measure: overall program impact, including the number of recipients enrolled in education or training programs that increase the recipient’s skill level; interim progress toward employment for current recipients of temporary cash assistance, including the number of recipients earning an education credential or a skill–based certificate; employment outcomes for families who left temporary cash assistance due to earnings, including the number of employment outcomes with wages that: equal the State minimum wage; meet or exceed 150% of the State minimum wage; and meet or exceed 200% of the State minimum wage; and the number of the recipients served experiencing homelessness or housing insecurity while participating in work activities. Within 45 days after completion of the Department’s review under subsection (c) of this section, the Department shall: in accordance with § 2–1257 of the State Government Article, submit the review to the Senate Budget and Taxation Committee and the House Appropriations Committee; and publish the review on the Department’s website.

Except as provided in subsection (b) of this section, a religious organization may participate in the FIP on the same basis as any other nongovernmental entity. An individual may not be required to accept assistance from a religious organization if acceptance would violate the individual’s bona fide religious beliefs and practices. An organization funded under the FIP may not discriminate on the basis of religion, religious belief, or refusal to participate in a religious practice with respect to any individual’s receipt of service under the FIP. The Department shall provide all recipients with clear and timely notice of their rights under § 104(e) of the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

In this subsection the following words have the meanings indicated. “Target work rate” means the rate established for the State by the U.S. Department of Health and Human Services based on the State’s caseload reduction credit under the federal Temporary Assistance for Needy Families program, 42 U.S.C. 22–601 et seq. “Work participation rate” means the federal work participation rate established by the U.S. Department of Health and Human Services under the federal Temporary Assistance for Needy Families program, 42 U.S.C. 22–601 et seq. A family may be eligible for assistance under this subtitle only if the family includes: a minor child who resides with a custodial parent or other adult caretaker who is a relative of the child; or a pregnant individual. Assistance shall be provided to an applicant or recipient under this subtitle only if the applicant or recipient: resides in the State at the time of application for assistance; if applicable: has applied for child support services with the appropriate local child support enforcement office at the time of application for assistance; and complies with the requirements of the local child support enforcement office; participates in work activity under this subtitle; and meets all other FIP requirements that the Secretary establishes by regulation. Subject to paragraph (5) of this subsection, the Department shall allow an applicant or a recipient to meet the work activity requirement for a maximum of 24 months by engaging in: a minimum of 20 hours per week of vocational education that leads to an associate degree, a diploma, or a certificate; or an average of at least 20 hours per week of education directly related to employment, which may include: an adult basic education program; an English as a second language program; or a GED program. If the work participation rate does not exceed the target work rate by 10% in any month, the Department, after providing at least 30 days prior notice to the Senate Finance Committee and the House Appropriations Committee, may suspend the application of paragraph (4) of this subsection to new applicants until the work participation rate exceeds the target work rate by 10% for 3 consecutive months. The Department may require a work–eligible individual to participate in work activity for a maximum of: 30 hours per week for an individual with a child at least 6 years old; 20 hours per week for a single parent or caretaker relative with a child under the age of 6 years; a combined average of 35 hours per week for a family with two work–eligible parents who do not receive federally funded child care assistance; or a combined average of 55 hours per week for a family with two work–eligible parents who receive federally funded child care assistance, provided that an adult in the family does not have a disability or is not caring for a child with a disability. A work–eligible individual may choose to participate in work activity for more than the required weekly hours under paragraph (6) of this subsection, up to a maximum of 40 hours per week, provided that working the additional hours does not violate the federal Fair Labor Standards Act. The Department may not reduce the temporary cash assistance of an individual, as provided in § 5–312(e)(1)(i) of this subtitle, if the individual is meeting the Department’s minimum work activity participation requirement and participating in work activity for less than 40 hours per week. The Department shall accept verification of an individual’s work activity participation through multiple methods, including electronic submission. An individual may not be required to meet the work activity requirement under subsection (a)(3)(iii) of this section if the individual is exempt under criteria the Secretary establishes. The criteria shall include exemptions for: subject to paragraph (3) of this subsection, adults who are required to care for a child who is a recipient under the age of 1 year; subject to paragraph (4) of this subsection, adults and children who are recipients and who are severely disabled; and adults who have not received assistance for at least 6 months. An exemption based on an adult’s requirement to care for a child who is a recipient under the age of 1 year may not be restricted to a maximum number of months in the adult’s lifetime. An individual’s exemption because of severe disability is limited to 12 months unless: the individual applies for Supplemental Security Income; and the application is approved, pending, or on appeal. Assistance for an individual who qualifies for an exemption under this subsection but who voluntarily participates in a work activity may not be reduced or terminated as a result of the participation in the work activity. Assistance for an individual may not be reduced or terminated for noncompliance with the work activity requirement if the individual has good cause under the criteria established by the Secretary. The criteria shall provide that any of the following are sufficient to show good cause: temporary illness or incapacity; court–required appearances or temporary incarceration; domestic violence; a family crisis that threatens normal family functioning, including: experiencing homelessness whereby a family: lacks a fixed, regular, and adequate nighttime residence, or shares the housing of other persons due to the loss of housing, economic hardship, or a similar reason; lives in a motel, hotel, trailer park, or camping ground due to a lack of alternative accommodations; lives in an emergency shelter or transitional housing; resides in a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings; or lives in a car park, public space, vacant or abandoned building, substandard housing, bus station, train station, or similar setting; a housing crisis, including eviction, foreclosure, or other loss of housing; or receiving a utility disconnection notice or having a utility disconnected; a breakdown in transportation arrangements; a breakdown in child care arrangements or lack of child care for a child or children who are 12 years old or younger; for a single parent caring for a child younger than 6 years old who is unable to obtain child care: the unavailability of appropriate child care within a reasonable distance from the parent’s home or work site; the unavailability or unsuitability of informal child care by a relative or others; or the unavailability or unsuitability of appropriate and affordable child care arrangements; a lack of supportive services identified and agreed on by an individual and a local department; or the failure of a local department to offer or provide a reasonable accommodation to an individual with a disability. In this subsection, “good cause” means that circumstances exist in which cooperation with child support may be against the best interest of the child. The FIP shall determine that an individual has good cause for noncooperation with child support if circumstances exist in which cooperation by the individual with child support may be against the best interest of the child. The FIP may not deny an application or reduce or terminate assistance if an individual has good cause for noncooperation with child support under criteria established by the Secretary. The criteria established by the Secretary shall provide that an individual has good cause for noncooperation if the individual states that: cooperation risks physical or emotional harm to or retaliation against the child or the relative with whom the child resides; the child for whom support is sought was conceived as a result of incest or rape; proceedings for the adoption of the child are pending or under consideration; or cooperation risks discouraging a noncustodial parent of the child from maintaining a relationship with the child or providing emotional or other support. The FIP is responsible for granting good cause to an individual for noncooperation with child support. In the process of granting good cause, a FIP worker at a local department may not contact the noncustodial parent from whom support would be sought. An individual who claims good cause under this subtitle is not required to produce written evidence. The Department may not require third–party verification to prove good cause. An individual may provide an oral or written statement to prove good cause. If an individual provides an oral statement to prove good cause, a FIP worker at a local department shall document the oral statement. If an individual needs assistance, a FIP worker at a local department shall assist the individual in preparing a written statement or documenting an oral statement on a standardized form created by the Department. The FIP may not require a written statement to be notarized or be in any other format that imposes a cost on the individual. During the application and certification process for assistance, the FIP shall: notify all individuals on the availability of child support pass–through and disregard; notify all individuals of the right of the individual to claim good cause to not cooperate with child support, the criteria for good cause, and the time frame and process for requesting good cause; notify all individuals that a FIP worker can provide the individual with assistance in requesting good cause; at a minimum, provide the notice required under this paragraph: in writing on the application for assistance; orally during a phone interview or an in–person interview; and in all written FIP notices about child support compliance or noncompliance; provide an individual with assistance in requesting good cause; and provide an individual with an opportunity to claim good cause. The FIP may not deny an application or terminate assistance if the Child Support Administration determines that an individual has adequate reason for noncooperation with child support. Circumstances beyond the control of an individual that are adequate reasons for noncooperation with child support include: delivery of mail from the Child Support Administration to an incorrect address; natural disaster or civil disorder; critical illness; a family crisis requiring an individual’s full attention; and travel by an individual away from home, both in the period during which the Department mailed notices and during which the Department scheduled appointments. The Child Support Administration shall determine that there is adequate reason for an individual’s noncooperation with child support using the criteria under paragraph (2) of this subsection. An individual may request and receive a determination that there is good cause or adequate reason for noncooperation with child support at any time during the application and certification period. The Department shall inform an individual who does not provide the requested information related to child support that the individual may attest to the lack of information. The Department shall offer assistance with preparing the attestation under this subsection. The Department shall consider an individual who attests to the lack of information to be in cooperation with child support. Subject to the State budget, a legal immigrant is entitled to assistance under this subtitle if the immigrant: meets FIP eligibility requirements under this subtitle and any other requirements imposed by the State; and arrived in the United States before August 22, 1996; or arrived in the United States on or after August 22, 1996 and is not eligible for federally funded cash assistance.

The purpose of work experience is to improve the employability of individuals who cannot find unsubsidized full–time employment. The Department may refer an individual to work experience for work activity if: private sector employment is not available; the maximum work experience placement for the individual does not exceed 90 days in a 3–year period; the Department offers the individual at least three work activity options that include: subject to subsection (c) of this section, only one work experience option; and at least one option that is work activity or a program funded by the federal Workforce Innovation and Opportunity Act; the individual chooses the work experience for work activity; the Department informs the individual that the individual may subsequently change to different work activity; and the work experience provides skills that match the individual’s personal, career, and family goals to support economic mobility. If the Department offers work experience as work activity, the Department may not offer community service as work activity. If at any time the requirements of subsection (b) of this section are not met, an individual placed in work experience may request a transfer to different work activity.

The purpose of community service is to improve the employability of individuals who cannot find unsubsidized full–time employment. Community service shall: be limited to projects that service a useful community purpose in fields including health, social service, environmental protection, education, urban and rural development, welfare, recreation, public facilities, public safety, and child care; and be supervised on an ongoing basis at least once each day in which the individual is scheduled to participate in the community service. The Department may refer an individual to community service for work activity if: private sector employment is not available; the maximum community service placement for the individual does not exceed 90 days in a 3–year period; the Department offers to the individual at least three work activity options that shall include: subject to subsection (d) of this section, only one community service option; and at least one work activity option or a program funded by the federal Workforce Innovation and Opportunity Act; the individual chooses the community service for work activity; the Department informs the individual that the individual may subsequently change to different work activity; the community service provides skills that match the individual’s personal, career, and family goals to support economic mobility; and when making appropriate community service assignments, the Department has considered the individual’s prior training, experience, and skills. If the Department offers community service as work activity, the Department may not offer work experience as work activity. If at any time the requirements of subsection (c) of this section are not met, an individual placed in community service may request a transfer to different work activity.

Except for an applicant or recipient who is a single child, the FIP shall include: an assessment of each applicant or recipient that considers: the reasons for applying for or continuing to rely on assistance; an evaluation of appropriate work activities based on educational level, literacy, health, mental or physical impairments, housing stability, child care needs, transportation needs, history of domestic or family violence, job skills and readiness, and interests; personal and family resources available to facilitate independence; and whether the applicant or recipient qualifies for an exemption or has good cause not to participate in a work activity; and welfare avoidance grants that: meet immediate needs so that an applicant or recipient can avoid temporary cash assistance; may be granted as the Department considers appropriate; may not cover the same type of immediate need met by a previous welfare avoidance grant unless the Department determines that the current immediate need is a new and verified emergency; do not exceed an amount of 3 months of temporary cash assistance, unless the Department determines there is a compelling need for an amount not exceeding 12 months; and may not duplicate periods of temporary cash assistance. Except for a recipient who is a single child, the FIP for a recipient shall include: an agreement between the Department and the recipient that: requires the recipient to cooperate with the child support enforcement agency to obtain support from a noncustodial parent; requires the recipient to comply with reasonable requests for cooperation by case management workers in seeking and using programs and community and family resources that may be available to the recipient; specifies the work activities in which the recipient will participate; specifies the supportive services that the local department will assist in providing and that are necessary for the recipient to meet the recipient’s obligations under the FIP; and specifies the reasonable accommodations that a local department will provide to a recipient with a disability that are necessary for the recipient to meet the recipient’s obligations under the FIP; supportive services activities, including child care, to the extent resources allow; referral, as appropriate, to family planning counseling and services that: are not offered or conducted in a manner that: is coercive; violates the recipient’s confidentiality; or violates the recipient’s bona fide religious beliefs and practices; and give preference to eligible teen parents; and temporary cash assistance, as a last resort. Except for an applicant who is a single child, the FIP for an applicant shall include a child care voucher: to the extent resources allow, if the applicant is required to participate in a work activity as a condition of eligibility; or if providing child care eliminates the applicant’s need for cash assistance under the FIP. For an applicant or recipient who is a single child, the FIP shall include: referral to appropriate services; and temporary cash assistance for the recipient, as a last resort. To the extent resources allow, the FIP shall serve noncustodial parents who need employment services to pay child support obligations.

For a recipient that is an assistance unit that includes adults and children or minor parents and children, the amount of assistance shall be designated as follows: 75% for the child or children in the assistance unit; and 25% for the adult member or members, or minor parent or parents of the assistance unit. For a recipient that is an assistance unit that includes only adults or a recipient who is a pregnant individual, 100% of the amount of assistance shall be designated for the adult member or members or the pregnant individual. For applicants to the FIP, the amount of assistance shall be computed by counting no more than 4 weeks of earned income in any month and disregarding 20% of that earned income. Through fiscal year 2027, the first $100 of child support collected in a month for one child and the first $200 of child support collected in a month for two or more children shall pass through to the family and shall be disregarded in computing the amount of assistance. For fiscal year 2028, the greater of $100 of any child support collected in a month for one child and $200 of child support collected in a month for two or more children or 25% of any child support collected in a month shall pass through to the family and shall be disregarded in computing the amount of assistance. For fiscal year 2029, the greater of $100 of any child support collected in a month for one child and $200 of child support collected in a month for two or more children or 50% of any child support collected in a month shall pass through to the family and shall be disregarded in computing the amount of assistance. For fiscal year 2030, the greater of $100 of any child support collected in a month for one child and $200 of child support collected in a month for two or more children or 75% of any child support collected in a month shall pass through to the family and shall be disregarded in computing the amount of assistance. For fiscal year 2031 and each fiscal year thereafter, any child support collected in a month shall pass through to the family and shall be disregarded in computing the amount of assistance. For eligible recipients who obtain unsubsidized employment, the amount of assistance shall be computed by counting no more than 4 weeks of earned income in any month and disregarding 40% of that earned income. A recipient who has established eligibility may not lose eligibility solely because one or more wage earners in the family unit works more than 100 hours per month. Two–parent families shall be exempt from any requirement that the principal wage earner must have worked for a specified time before applying to the FIP. A child who is living with the child’s parent and a stepparent in a household in which the household income exceeds the State eligibility standard for assistance may receive assistance if: the requirements of § 5–308 of this subtitle are met; and the parent and the child would be eligible for assistance, based on the income of the parent and that parent’s children. The amount of assistance to be paid under paragraph (1) of this subsection shall be computed with regard to the income of the stepparent if the total income of the stepparent equals or exceeds 50% of the official poverty level, adjusted for family size, established under the federal Community Services Block Grant Act. A dependent child over the age of 17 years is eligible for inclusion in the FIP grant if: the child is a full–time student in secondary school or the equivalent; and the education program is expected to be completed in the calendar year that the child attains the age of 19 years.

All assistance granted under this subtitle is subject to periodic recertification. At any time, the Department may cancel, suspend, or revoke assistance if: the recipient’s circumstances have altered sufficiently to warrant cancellation, suspension, or revocation; or the recipient has failed to comply with FIP requirements.

This section is not intended to create an incentive for individuals to seek temporary cash assistance benefits instead of employment. A local department shall provide temporary cash assistance to an applicant or recipient only if: the applicant or recipient meets the requirements for participation in the FIP set forth in § 5–308 of this subtitle; the applicant or recipient assigns to the State all right, title, and interest in support, for the period that the family receives temporary cash assistance, from any other person that the applicant or recipient has on behalf of any intended or potential recipient for whom the applicant or recipient is applying for or receiving assistance; and in the case of an applicant or recipient who is a minor parent, the applicant or recipient lives: with a parent, legal guardian, custodian, or other adult relative who will be the payee of the minor parent; in an adult–supervised group living arrangement that provides a protective payee and: there is no available parent, legal guardian, custodian, or other adult relative with whom the minor parent can live; the minor parent or child would be subject to physical or emotional harm, sexual abuse, or neglect in the home of any available adult relative; or a social service worker finds that living with any available adult relative would not be in the best interest of the minor parent or child; or independently, if a social service worker confirms that the physical safety or emotional health of the minor parent or child would otherwise be in jeopardy. A recipient who meets the requirements of the FIP is entitled to temporary cash assistance benefits. In determining the eligibility for and the amount of temporary cash assistance to be provided to an applicant or recipient who is a legal immigrant, the income and resources of the applicant or recipient shall include, for the period of time established by federal law, the income and resources of any sponsor who executed an affidavit of support in accordance with 8 U.S.C. § 1183a on behalf of the legal immigrant. The local department shall impose a 30% reduction of the portion of a recipient’s grant amount designated for the adult member or members, minor parent or parents, or pregnant individual if an adult member, minor parent, or pregnant individual is found to be in noncompliance, without good cause, with FIP work activity requirements. The portion of the grant amount designated for the child or children of the assistance unit may not be reduced or terminated based on noncompliance by an adult member’s or minor parent’s noncompliance with FIP work activity requirements. The local department shall impose a 25% reduction of the entire grant amount if an adult member or minor parent is found to be in noncompliance without adequate reason or good cause with child support requirements. If a recipient is found to be in noncompliance with FIP requirements, the local department shall provide a 30–day conciliation period for each instance of noncompliance. During the 30–day conciliation period, the case manager shall advise the recipient of the noncompliance, and help the recipient to comply by: investigating the reasons for noncompliance, including by personally contacting the family of the recipient; evaluating and preparing a written determination of whether the recipient qualifies for an exemption or good cause under § 5–308(b), (c), (d), or (e) of this subtitle; sending the recipient a letter offering a conciliation conference; and assisting the recipient in identifying and resolving any barriers to compliance. The Secretary may not reduce or terminate temporary cash assistance to a family until 30 days after the day on which the first written notice of noncompliance was sent to the recipient. For noncompliance with a FIP requirement, the full amount of temporary cash assistance shall resume on compliance with the FIP requirement. If temporary cash assistance is reduced or terminated under this subsection, a recipient shall retain eligibility for medical assistance and food stamps, as long as the recipient meets the medical assistance and food stamp program requirements. After termination of temporary cash assistance under this section, a recipient may receive transitional assistance. If a caseworker determines that transitional assistance is appropriate, the FIP benefit that would have been paid to the recipient shall be paid instead to a third party payee on behalf of the recipient for a period of up to 3 months. The caseworker of a recipient, in conjunction with the recipient and subject to the approval of the Secretary, shall select a third party payee described in paragraph (2) of this subsection. The third party payee shall provide transitional assistance to the recipient in one or more of the following forms: counseling; housing; child care; household supplies and equipment; direct assistance other than a cash payment; and any other noncash assistance that may be necessary to assist the recipient to make the transition from welfare. A local department may pay an administrative fee to a third party payee to cover the administrative costs of the third party payee for providing the services described in paragraph (4) of this subsection. The funds provided through transitional assistance may not be used to further sectarian religious instruction. The Secretary shall adopt regulations specifying the selection criteria for third party payees under this subsection. A recipient who has received transitional assistance may reapply for the FIP benefit and the benefit shall be furnished with reasonable promptness to all eligible individuals.

Except as provided in subsection (b) of this section and in regulations that the Secretary adopts, a local department may not pay temporary cash assistance to: a family that includes an adult who has received more than 60 cumulative months of temporary cash assistance funded wholly or partly by federal funds; or a family that includes an adult who: has received more than 24 cumulative months of temporary cash assistance funded wholly or partly by federal funds; and is not participating in a work activity. The Secretary shall adopt regulations that establish: standards and procedures under which a local department may exempt a family from the limitation under subsection (a)(1) of this section because of hardship; and a separate State program that: is funded entirely from State general funds that may be counted toward any federal maintenance of effort requirement; pays temporary cash assistance to a family that is exempted under item (1) of this subsection but cannot receive federal funds because of federal limitations; and is subject to all FIP requirements under this subtitle. The provisions of this section are subject to federal law and regulation.

In this section, “addictions specialist” means an addictions specialist who is located on-site at a local department. An addictions specialist shall assess the need of any adult or minor parent applicant or recipient for substance abuse treatment: at the initial application for temporary cash assistance; or when considered appropriate by the FIP case manager of the local department. The addictions specialist shall screen the applicant or recipient to expose potential barriers that the applicant or recipient may have in obtaining employment such as a substance abuse problem. The addictions specialist shall inform each adult or minor parent applicant or recipient of the requirements of FIP regarding substance abuse treatment. If the applicant or recipient does not complete the screening required under paragraph (2) of this subsection, the addictions specialist shall notify the FIP case manager. If the screening performed by the addictions specialist reveals that an applicant or recipient has a substance abuse problem, the addictions specialist shall: conduct, or refer for, an assessment of the applicant’s or recipient’s substance abuse problem and, if appropriate, determine placement for treatment and related support services; refer the applicant or recipient for appropriate substance abuse treatment and related support services; obtain the signature of the applicant or recipient on a form consenting to the release of confidential substance abuse treatment information; forward the consent form to the appropriate substance abuse treatment provider; and obtain any necessary treatment information from the substance abuse treatment provider. The substance abuse treatment provider shall notify the addictions specialist of the ongoing treatment status of the applicant or recipient. The addictions specialist shall notify the FIP case manager if an applicant or recipient: fails to complete the assessment required under paragraph (1)(i) of this subsection; fails to sign the consent form required under paragraph (1)(iii) of this subsection; is referred for appropriate substance abuse treatment; is awaiting the availability of appropriate treatment; fails to enroll or maintain enrollment with an available substance treatment provider or to complete the treatment protocol; is enrolled in a treatment program; or successfully completes treatment. The addictions specialist shall also notify the FIP case manager regarding the ongoing treatment status of the applicant or recipient. An adult or minor parent applicant or recipient who complies with the substance abuse treatment requirements of the FIP: shall receive a full temporary cash assistance benefit as long as the applicant or recipient meets the other temporary cash assistance eligibility requirements; and may be exempt from the work activity requirements for a period of time determined by the FIP case manager in consultation with the addictions specialist. An adult or minor parent applicant or recipient is not in compliance with FIP requirements if the FIP case manager receives notice from the addictions specialist that the applicant or recipient: fails to complete the screening or assessment required under subsections (b)(2) and (c)(1)(i) of this section; fails to sign the consent form required under subsection (c)(1)(iii) of this section; or is referred for appropriate and available substance abuse treatment by the addictions specialist but fails to enroll or to maintain active enrollment in the treatment program or complete the treatment protocol. After the FIP case manager receives a notice under subsection (e) of this section, the local department shall: send a denial notice to the adult or minor parent applicant that: states: that the applicant has not met FIP requirements; the specific reason why the applicant is not eligible for FIP; and that if the applicant fails to fulfill the requirements on or before the 30th work day after the application for temporary cash assistance was filed, the application is denied; and notifies the applicant of the applicant’s right to appeal and the procedures for filing an appeal; and separately determine eligibility for medical assistance and food stamps. After the FIP case manager receives a notice under subsection (e) of this section, the local department shall send a notice to the adult or minor parent recipient that: identifies the recipient who is not in compliance with FIP requirements; states the specific reason why that recipient is not in compliance with FIP requirements; and states that 30 days after the date of the notice: the temporary cash assistance benefits will be reduced by that increment in cash benefits attributable to the noncompliant recipient; and the remainder of the cash benefits for the child or children in the FIP case will be paid to a third party payee or a compliant adult recipient; and notifies the recipient of the recipient’s right to appeal and the procedures for filing an appeal. The local department shall reduce the temporary cash assistance benefits of an adult or minor parent recipient and pay the remainder of the cash benefits to a third party payee or a compliant adult recipient as described in subsection (g) of this section, if: the recipient fails to complete a substance use disorder screening or assessment by an addictions specialist, as required under subsections (b)(2) and (c)(1)(i) of this section; or the required screening and assessment or the results of any follow–up diagnostic testing or treatment reveal that the recipient has a substance use disorder and the recipient refuses to enroll or maintain enrollment in available and appropriate substance use disorder treatment. The local department shall continue to make temporary cash assistance benefits payments to a third party payee or a compliant adult recipient until the local department receives notice from the addictions specialist that the recipient is actively enrolled, as defined by the Department, in the appropriate substance use disorder treatment indicated by the addictions specialist. The local department may not deny an adult or minor parent applicant’s temporary cash assistance benefit or reduce an adult or minor parent recipient’s temporary cash assistance benefit as described under subsections (f) and (g) of this section, if the applicant or recipient: receives the screening and assessment required under subsections (b)(2) and (c)(1)(i) of this section, and the screening and assessment or the results of any follow-up diagnostic testing or treatment reveal that the applicant or recipient is a substance abuser; and agrees to participate in appropriate substance abuse treatment, as determined by the addictions specialist, but the appropriate substance abuse treatment is not available. The denial or reduction of temporary cash assistance under this section does not affect an adult or minor parent applicant or recipient’s eligibility for medical assistance and food stamps, as long as the applicant or recipient meets the medical assistance and food stamp program requirements.

Subsections (b) and (c) of this section are not intended to create an incentive for individuals to seek temporary cash assistance benefits instead of employment. In determining a family’s eligibility for the FIP, the local department shall exclude Supplemental Security Income (SSI) benefits provided to an adult or child family member. Except as limited by federal requirements, the level of temporary cash assistance, as determined by a local department, shall: be determined with due regard to the available resources, necessary expenditures, and specific conditions of a family; and be sufficient, when added to all other income and support available to the child, to provide a child with a reasonable subsistence compatible with decency and health. A recipient who obtains employment remains eligible for medical assistance for up to 12 months after the date of employment.

Except as provided in paragraph (2) of this subsection, the Governor shall provide sufficient funds in the budget to: ensure that the value of temporary cash assistance, combined with federal food stamps, is equal to at least: for fiscal year 2021, 61% of the State minimum living level; and for fiscal year 2022 and each fiscal year thereafter, 61.25% of the State minimum living level; and maintain the FIP at the level of the fiscal year 1997 appropriation. The funds provided under this subsection may be less than the amount required under paragraph (1) of this subsection if the Governor reports to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the reasons for the reduced funding for temporary cash assistance and food stamps. This subsection does not limit the flexibility of local departments regarding the provision of services. If the Secretary determines during the fiscal year that the funds available for the FIP are insufficient to make payments in accordance with the amount of assistance otherwise established by law, the Secretary shall: provide for a uniform method of adjusting individual payments; and submit emergency regulations, in accordance with Title 10, Subtitle 1 of the State Government Article, to implement the adjustment. Effective July 1 of each year, the Department shall make available for reallocation within its budget any savings the Department anticipates from funds appropriated for the FIP during the current fiscal year as a result of: caseload reductions; or other reductions in the total amount of temporary cash assistance paid to recipients compared to the total amount of temporary cash assistance appropriated. Except as provided in subsection (e)(1) of this section, savings made available for reallocation may be used for: child care; work activities; welfare avoidance grants; drug treatment for targeted recipients; transportation; emergency funds for applicants and recipients; administration to the extent that additional administrative costs are required to effectively implement the FIP; or any other direct service to applicants or recipients that the Secretary and the local department consider appropriate to further the purposes of this subtitle. Savings shall be made available for reallocation as follows: 10% of the savings to the operating costs for one or more of the following: demonstration projects established under § 5-317 of this subtitle; second chance homes not subject to the restrictions of § 12 of Chapter 351 of the Acts of the General Assembly of 1996; or demonstration projects to empirically evaluate strategies to reduce the incidence of nonmarital births in the State; 45% of the savings to local departments, in accordance with the savings achieved by each local department, for the purposes authorized under subsection (d) of this section; and 45% of the savings for the purposes authorized under subsection (d) of this section. Notwithstanding § 7-302 of the State Finance and Procurement Article, any savings allocated under this subsection that remain unexpended at the end of a fiscal year may be carried over into the next fiscal year.

The Secretary shall establish demonstration projects through grants to: nonprofit organizations; local education agencies; local management boards; local health departments; religious organizations; and institutions of higher education. The entities listed in paragraph (1) of this subsection shall jointly develop proposals for demonstration projects under this section with local departments. At least one of the demonstration projects under this section shall be located in a county other than the two counties with the largest numbers of FIP recipients. The Secretary shall award grants for demonstration projects under this section through a competitive bid process that includes: the issuance of a request for proposals; and the establishment of an evaluation panel to review competing proposals and to make a recommendation to the Secretary concerning which proposals have the greatest programmatic and financial merit. Not more than 50% of the funds allocated for demonstration projects under this section may be allocated to a single demonstration project. The funds allocated for demonstration projects under this section are incentive funds over and above any transfer of FIP benefits to a third party payee. Funds allocable to demonstration projects under paragraph (2) of this subsection shall, if feasible, be used for demonstration projects in the counties that generated the savings reallocated to demonstration projects under § 5-316(e) of this subtitle. When awarding grants under paragraph (1) of this subsection, the Secretary shall give priority in funding for at least 20% of the funds allocated to demonstration projects under this section to regional proposals from two or more counties in the State. Funds allocated to demonstration projects under this section may not be used in the furtherance of sectarian religious instruction or worship. In the request for proposals issued under subsection (b)(1)(i) of this section, the Secretary shall include requirements that: applicants specify what goods or services, or both, they will provide to participants; and each demonstration project: complement the local department FIP Plan; and address specific, unmet local needs and barriers that prevent families from meeting the requirements of this subtitle. In addition to the demonstration projects funded under subsection (b) of this section, the Secretary shall encourage and facilitate demonstration projects that are supported through: the voluntary transfer of temporary cash assistance and food stamp benefits to the demonstration project; the transfer of administrative costs from the local department; and any nonstate funds available to the project.

In this section the following words have the meanings indicated. “Children of current or former recipients” has the meaning stated in § 5–304 of this subtitle. “Former recipient” has the meaning stated in § 5–304 of this subtitle. “Foster youth” has the meaning stated in § 5–304 of this subtitle. “Obligor” has the meaning stated in § 10–101 of the Family Law Article. In cooperation with the local directors, the Secretary shall establish a job skills enhancement program to provide newly employed current and former recipients, children of current or former recipients, foster youth, and obligors with training to: enhance existing job–related skills; gain additional or alternative job skills; or learn interpersonal, communication, and other related skills. The job skills enhancement program shall be established in at least three counties, one of which shall be located in Western Maryland, Southern Maryland, or the Eastern Shore. The job skills enhancement program shall: target unskilled and semiskilled former and current recipients, children of current or former recipients, foster youth, and obligors who are newly employed in entry–level positions that have limited potential for advancement beyond entry–level; or target job training for former and current recipients, children of current or former recipients, foster youth, and obligors for employment in energy and environmental industries and construction, including: the energy–efficient building, construction, and retrofits industries; the renewable electric power industry; the energy efficient and advanced drive train vehicle industry; the biofuels industry; the deconstruction and materials use industries; the energy assessment industry serving the residential, commercial, or industrial sector; the manufacturing industry that produces sustainable products using environmentally sustainable processes and materials; the brownfields remediation industry; the state of the art septic upgrades and sewage treatment industry; environmental restoration, including stream restoration, reforestation, invasive removal, and acid mine drainage; state of the art storm water installation and retrofits; agriculture conservation practices; the green roof industry and green roof maintenance industry; and sustainable landscaping. Participation in the job skills enhancement program shall be voluntary. Individuals participating in the job skills enhancement program shall sign a training agreement with the local department. To be eligible to participate in the job skills enhancement program, an individual shall: have been a recipient during the 36 months before beginning participation in the job skills enhancement program; or be a former recipient, a child of a current or former recipient, a foster youth, or obligor; have been employed in entry–level employment for at least 6 months before beginning participation in the job skills enhancement program; provide employer validation or other documentation of employment status; have limited job skills; and have limited opportunity for advancement in the individual’s current employment. The local department shall contract for training services to be provided under the job skills enhancement program, as provided in § 5–306 of this subtitle. The local department may work with businesses to train and place current and former recipients, children of current or former recipients, foster youth, and obligors in positions that meet the requirements of paragraph (2) of this subsection. Participating businesses shall: provide employment with benefits paid to employees; provide employment that has a defined career path; demonstrate the active involvement and financial commitment of the business; and provide a match with cash or in–kind contributions on at least a one–to–one basis. At the discretion of the Secretary and in consultation with the local director, the job skills enhancement program shall be administered by the local department or through the State workforce development area system under the federal Workforce Innovation and Opportunity Act. The Administrator of the program under paragraph (1) of this subsection shall: manage each participant’s training plan; maintain a database of appropriate training vendors; and compile necessary fiscal reports on the job skills enhancement program. In addition to any other funds available to fund the job skills enhancement program, the Secretary shall attempt to access funds available to the State under the American Recovery and Reinvestment Act and any other funds designed to reduce energy use and global warming emissions that would be available for job training in the industries listed under subsection (c)(2) of this section.

In this section, “demonstration site” means a site that the Secretary selects in consultation with the local director. The Secretary may establish a FIP demonstration site in not more than six jurisdictions. Notwithstanding any other law, the local director shall appoint a director of the FIP established in a demonstration site who shall report directly to the local director. Notwithstanding any other law, the Secretary has sole authority to approve demonstration site plans that will govern FIP functions in a demonstration site, including the authority to approve demonstration site plans that will: assist families that have an employable parent toward a lasting exit from temporary cash assistance; ensure that individuals and families receive appropriate benefits; reduce errors in the administration of FIP; place temporary cash assistance recipients in employment in which their earnings will likely increase; and improve the types of employment and employment retention rates of existing and former recipients. The local director shall: develop a demonstration site plan for submittal to the Secretary for approval that will detail its: programmatic structure, including any programmatic changes; organizational structure, including any organizational changes; pay incentive structure and criteria for the award of pay incentives; measurable performance criteria and how these relate to the incentive structure; and target performance criteria; implement the plan as approved; and report to the Department on the progress achieved in the demonstration site. The proper operation of the demonstration site and the achievement of the target performance criteria shall be an element of the local director’s performance evaluation. The Secretary shall establish a performance incentive program to provide pay incentives for employees in a demonstration site. The Secretary’s powers under this section shall be construed liberally.

In cooperation with local directors, the Secretary shall establish a mentoring program for former recipients. The mentoring program may include FIP caseworkers in local departments who volunteer to be mentors. The Department may contract with other entities under § 5-306 of this subtitle to acquire mentors for former recipients. Mentoring may include: providing assistance to resolve workplace problems; providing workplace adjustment assistance; job coaching; providing assistance to develop life skills; counseling and tutoring; and any other activities that will help former recipients through the first months that they no longer receive temporary cash assistance. To be eligible to participate in the mentoring program, an individual shall: have been a recipient in the previous 6 months; have been employed; and have a demonstrated need and desire for assistance in acquiring and maintaining the skills necessary for a lasting exit from temporary cash assistance. Program participation may not exceed 6 months. The Secretary may arrange to provide pay or other types of incentives to employees who volunteer to mentor former recipients. The Secretary’s powers under this section shall be construed liberally.

Any assistance granted under this subtitle is subject to future amendment or repeal of this subtitle. A recipient is not entitled to compensation if the recipient’s assistance is affected by amendment or repeal of this subtitle.

On or before October 1 each year, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, the following information: for the preceding year: the number of recipients who engaged in vocational education or education directly related to employment; the number of recipients who completed vocational education or education directly related to employment; the number of recipients who obtained or maintained employment for 6 months, 12 months, 18 months, and 24 months after completing vocational education or education directly related to employment; and the average earnings of recipients who obtained or maintained employment for 6 months, 12 months, 18 months, and 24 months after completing vocational education or education directly related to employment; and for the preceding fiscal year, the following information on work experience and community service work activity placements: information on the work sites and the public, private, and nonprofit organizations that have engaged temporary cash assistance recipients in work experience and community service, including: a list, organized by county, of all work sites in the State, including units of State, federal, and local government that have engaged temporary cash assistance recipients in work experience; for each work site: the total number of work experience placements for the year; the position, job duties, number of hours, and market salary rate for the job being performed by the temporary cash assistance recipients engaged in work experience; and the number of temporary cash assistance recipients engaged in work experience who were hired by the work site for unsubsidized employment; and a list, organized by county, of all public and nonprofit organizations in the State that have engaged temporary cash assistance recipients in community service; information, organized by the number, jurisdiction, race, ethnicity, age, and gender of individuals who participated in work experience and community service; and information on the employment outcomes of individuals who participated in work experience, including the number of individuals in work experience who were provided direct entry into a full–time job with a wage that: equals or exceeds the State minimum wage; equals or exceeds 150% of the State minimum wage; and equals or exceeds 200% of the State minimum wage. The information in the report required under subsection (a)(1) of this section shall be broken down by the types of vocational education or education programs in which the recipients engaged, including: associate degree programs; vocational education programs that do not lead to an associate degree; postsecondary education programs that are not included in item (1) or (2) of this subsection; adult basic education programs; English as a second language programs; and GED programs.

The Department shall hire an outside consultant to conduct a review of FIP to assess the extent to which FIP is: implementing policies equitably; and employing best practices to achieve the best outcomes possible for children and their parents, including by considering that many FIP recipients are experiencing or have experienced significant trauma. The consultant hired under this section shall demonstrate knowledge of the federal Temporary Assistance to Needy Families programs. At a minimum, the review conducted under this section should include an assessment of the following: program design, including core beliefs, goals, objectives, service delivery model, regulations, program rules, and performance measures; contract design and execution, including: payment structure; incentives; and service delivery approach and performance with a focus on placement in high–quality jobs with wages that meet or exceed 150% of the State minimum wage; program outcomes that, to the extent practicable, are disaggregated by race and ethnicity; an examination of how the State’s use of unpaid work experience compares to other states and alternative program options; documentation of innovative and evidence–based practices being implemented in other states; and all assessment tools used by the Department under § 5–309(a)(1) of this subtitle with a focus on recommending changes needed for the assessment to be conducted in a manner that is: trauma–informed; antiracist; and individualized, empowering, and client–centered. To receive meaningful input on FIP in accordance with the review conducted under this section, including recommendations on methods to strengthen FIP, the Department shall consult: stakeholders, including current and former recipients; community–based organizations; and other interested parties. The review conducted under this section shall: include a summary of: the strengths and weaknesses of FIP; recommendations for improving FIP; and any necessary legislative or administrative changes to make the improvements; and on or before October 1, 2024, in accordance with § 2–1257 of the State Government Article, be submitted to the General Assembly; and be published on the Department’s website. Until the Department has fully implemented, to the extent practicable, the recommendations of the final review submitted under subsection (e) of this section, beginning in calendar year 2024 and each year thereafter, the Department shall report, in accordance with § 2–1257 of the State Government Article, to the Senate Finance Committee and the House Appropriations Committee on the plans and progress for implementing the recommendations made in the review.