Amends TCA Section 71-1-105; Section 71-3-104; Section 71-3-105; Section 71-3-120; Title 71, Chapter 5, Part 12 and Section 71-5-314.

As part of its responsibility to administer or supervise public welfare activities, present law generally requires the department of human services to investigate fraud, abuse, theft, misappropriation, or misuse of property, funds, or services by any person or entity, and employee misconduct, in any program administered by the department. This bill generally makes it a Class B misdemeanor for a person to knowingly make public records and information obtained pursuant to any such investigation. The prohibition will not apply to records and information upon closure of the investigation and final adjudication of any administrative appeal of an action taken based upon the results of the investigation or the conclusion of all court proceedings in a criminal prosecution related to the investigation, whichever occurs later. The prohibition also will not prevent the department from sharing information or records with the district attorney general or law enforcement personnel for the purpose of cooperating with a law enforcement investigation; provided, that such information or records remain confidential except to the extent that a court orders otherwise, the information or records are used as evidence in a criminal prosecution, or the Tennessee rules of criminal procedure require disclosure. Under present law, it is a criminal offense for a person to knowingly misuse or fraudulently obtain TANF benefits or food stamps. If the value of the benefits involved is less than $100, the offense is a Class A misdemeanor. If the value of the benefits involved is $100 or more, the offense is a Class E felony, which may be punished by a sentence of imprisonment and a fine of $1,000 to $5,000. For felony offenses, this bill increases the authorized fine amount to $2,500 to $10,000 when the offense is committed by means of a willfully false impersonation, assumption of a false identity, or presentation of a false identification. Present law requires the commissioner of human services to appoint a group of citizens in each county to a families first council, whose duty is to assist persons in their county to move from public assistance to self-sufficiency. This bill replaces the families first councils with a requirement that the commissioner convene families first community advisory meetings in each of the three grand divisions at least twice annually. The commissioner will set the number of attendees at the advisory meetings and the department of human services will be required to publish on its website the agenda and meeting minutes for each advisory meeting. Present law establishes eligibility requirements for TANF benefits, including: having a dependent child or pregnant person in the household; meeting income standards; engaging in work activities, unless exempted; compliance with a personal responsibility plan; being otherwise eligible under federal or state laws. This bill requires the department of human services to create a two-year pilot program establishing an optional alternative temporary assistance pathway offering enhanced educational support services or enhanced cash assistance for families with individuals who are actively pursuing a degree, professional certification, or other educational advancement. The eligibility requirements under present law will apply to the pilot program, as well as any requirements established by the department by rule under this bill. This bill authorizes a family to elect that all enhanced temporary assistance for which the family qualifies under the pilot program be provided as enhanced support services, rather than enhanced cash assistance. Present law generally sets the maximum standard grant for the TANF program at: (1) For an assistance group size of one person, 22 percent of the fiscal year 2018-2019 standard of need for an assistance group size of one (1) person; and (2) For each additional member added to an assistance group, an additional two percent is added to 22 percent, and the maximum standard grant for each respective assistance group size is the resulting percentage of the fiscal year 2018-2019 standard of need for that assistance group size. Under present law, the maximum grants for the TANF program, expressed as a percentage of the standard of need, may be raised if approved as a line item in the annual appropriations act. Present law prohibits approval of an increase in the maximum grants for the TANF program by rules. This bill authorizes approval of the maximum grants for the TANF program, expressed as a percentage of the standard of need, by a line item in the annual appropriations act or by rule of the department. This bill sets the maximum standard grant for the TANF program for all assistance group sizes at no less than 25 percent of the standard of need for the applicable assistance group size. This bill authorizes the commissioner of human services to promulgate rules to effectuate this bill's provisions. ON APRIL 15, 2021, THE HOUSE ADOPTED AMENDMENTS #1, #2, AND #3 AND PASSED HOUSE BILL 142, AS AMENDED. AMENDMENT #1 adds that this bill's prohibition against disclosure of certain investigatory records of the department human services will not prevent the department from sharing information or records with the comptroller for the purpose of audit. This amendment adds a requirement that the department conduct a study or engage with a research partner to study the impact and effectiveness of the increase in the maximum standard grant and lifetime maximum benefit timeframe authorized under this bill. This amendment adds a requirement that the annual cost of any program or expenditure authorized under this bill must not cause the department to exceed the amount of the annual federal temporary assistance for needy families block grant award available for use on administrative costs. Advisory Board This amendment replaces this bill's requirement that the commissioner of human resources convene families first community advisory meetings. This amendment instead creates a families first community advisory board to: (1) Advise the department on the approval and retention of a research partner or partners to assist in the research and evaluation of the Tennessee opportunity pilot program, which this amendment creates; (2) Review and advise the department on the selection of the Tennessee opportunity pilot program recipients of planning grants and implementation grants; (3) Submit a final report to the general assembly no later than December 31, 2025; and (4) Make additional recommendations regarding families first and two-generation programs. The advisory board will be composed of no more than 21 members as follows: (1) The commissioner of human services, who shall serve as chair and convener; (2) The commissioner of labor and workforce development, or the commissioner's designee; (3) The commissioner of economic and community development, or the commissioner's designee; (4) The commissioner of education, or the commissioner's designee; (5) The commissioner of health, or the commissioner's designee; (6) Two senators appointed by the speaker of the senate; (7) Two representatives appointed by the speaker of the house of representatives; (8) Three representatives of Tennessee businesses, two of whom are to be appointed by the speaker of the senate and one of whom is to be appointed by the speaker of the house of representatives; (9) Three representatives of Tennessee nonprofits with expertise about services that support economic advancement for low income Tennesseans, one of whom is to be appointed by the speaker of the senate and two of whom are to be appointed by the speaker of the house of representatives; and (10) No more than six members appointed by the commissioner of human services, all of whom must be a representative of local government, a faith-based organization, a Workforce Innovation and Opportunity Act partner, or a current or former recipient of families first or two-generation program assistance. The full text of this amendment specifies various organizational, administrative, and procedural requirements for the advisory board. Community Grants This bill requires the department of human services to accept grant applications from applicants distributed proportionally across the three grand divisions to the extent possible, for programs to provide services to families and individuals eligible for the TANF program and in furtherance of the four purposes of the TANF program. This bill requires the department to award community grants in amounts not to exceed $50 million, subject to appropriations, using funds from the department's existing surplus reserve of TANF funds. Opportunity Pilot Program Grants In fiscal year 2022, this bill requires the department to dedicate $182 million, subject to appropriations, from the department's existing surplus reserve of TANF funds to support the planning, implementation, and evaluation of three-year Tennessee opportunity pilot programs in six communities and one pilot program to be administered by the department with the goal of demonstrating the efficacy of well-implemented two-generation approaches to improving education, health, and economic outcomes for children and the adults in those children's lives. By July 1, 2021, this bill requires the department to dedicate up to $5 million, subject to appropriations, from the $182 million for Tennessee opportunity pilot planning grants. The department may award up to 50 planning grants. The following entities may apply for a planning grant: (1) A political subdivision of Tennessee; (2) A nonprofit corporation; (3) A development district, created pursuant to the Development District Act of 1965; and (4) A human resource agency, created pursuant to the Human Resource Agency Act of 1973. The planning grants must be awarded no earlier than October 1, 2021, in amounts up to $500,000, subject to appropriations, to applicants that demonstrate commitment and capacity to create a compelling two-generation plan for increasing economic advancement and family well-being in the community. The full text of this amendment specifies various items that must be included in an application. The department will select the planning grant recipient communities and ensure that the recipient communities represent a mix of urban, rural, and suburban populations in this state. By May 1, 2022, this amendment requires the department to award a three-year implementation grant up to $25 million, subject to appropriations, to each of six implementation grantees selected from the planning grant recipients. This amendment required the department to select the implementation grantees and ensure that there are two implementation grantees from each grand division and that there is a mix of urban, rural, and suburban populations in this state. No earlier than October 1, 2021, this amendment requires the department to select and fund a research partner or partners that will support the research and evaluation of the Tennessee opportunity pilot programs. If the federal government deems planning grants to be administrative costs, this amendment requires the department to utilize its remaining fiscal capacity for administrative costs to provide the grants. The remainder of funds dedicated for planning grants must be reallocated across the six pilot program grantees. The department may seek advisement from the advisory board on the reallocation. Unexpended and Reserve Funds of TANF Program This bill requires the department to, at the beginning of federal fiscal year 2022, ensure that a rainy-day fund in an amount not to exceed the TANF annual federal award of the existing reserve of federal TANF funds remain unobligated in order to address unforeseen future economic needs, including those resulting from an emergency that has been declared in the state or an economic downturn having statewide impact. If the amendment to the existing TennCare II waiver authorizing the bureau of TennCare to create reasonable work and community engagement requirements for able-bodied working-age adult enrollees without dependent children under six years of age is approved by the federal centers for medicare and medicaid services, this amendment authorizes the department to set aside $54 million, subject to appropriations, in TANF funds to address such expenditure. This bill requires that, in the 12-month period following the end of each federal fiscal year, the department must spend or obligate 100 percent of unobligated TANF funds that are not allocated to the department's administrative overhead costs; that are not part of the reserve required by this amendment; that are not dedicated to the Tennessee opportunity pilot program; that are not used for the department's cash assistance program; and that are not used on a program or service deemed necessary by the department. The full text of this amendment describes the process for expenditure or obligation of such funds. AMENDMENT #2 gives the families first community advisory board the authority to approve the department's retention of a research partner or partners and the selection of grant recipients; provided, that advisory board members who are members of the general assembly will be prohibited from voting on any matter involving the review and approval of recipients of monetary awards or grants. This amendment replaces "gender" with "sex" as a characteristic of diversity for which the respective speakers are required to strive when making appointments to the advisory board. AMENDMENT #3 specifies that operational records of a state agency, including the department, which are not investigative records or not otherwise protected under state or federal law or other legal authority, must remain open for inspection by members of the public. ON MAY 3, 2021, THE SENATE SUBSTITUTED HOUSE BILL 142 FOR SENATE BILL 751, AND RESET HOUSE BILL 142.