LCO 1 of 5 General Assembly Substitute Bill No. 7104 January Session, 2025 AN ACT CONCERNING PROGRAMS TO MITIGATE THE BENEFITS CLIFF. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (d) of section 17b-112 of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective July 1, 2 2025): 3 (d) (1) Under said program, no family shall be eligible that has total 4 gross earnings exceeding the federal poverty level, however, in the 5 calculation of the benefit amount for eligible families and previously 6 eligible families that become ineligible temporarily because of receipt of 7 workers' compensation benefits by a family member who subsequently 8 returns to work immediately after the period of receipt of such benefits, 9 earned income shall be disregarded up to the federal poverty level. On 10 and after October 1, 2023, the commissioner shall not deny a family 11 assistance under said program on the basis of such family's assets unless 12 such assets exceed six thousand dollars. Except when determining 13 eligibility for a six-month extension of benefits pursuant to subsection 14 (c) of this section, the commissioner shall disregard the first fifty dollars 15 per month of income attributable to current child support that a family 16 receives in determining eligibility and benefit levels for temporary 17 family assistance. Any current child support in excess of fifty dollars per 18 month collected by the department on behalf of an eligible child shall be 19 Substitute Bill No. 7104 LCO 2 of 5 considered in determining eligibility but shall not be considered when 20 calculating benefits and shall be taken as reimbursement for assistance 21 paid under this section, except that when the current child support 22 collected exceeds the family's monthly award of temporary family 23 assistance benefits plus fifty dollars, the current child support shall be 24 paid to the family and shall be considered when calculating benefits. 25 (2) Notwithstanding the provisions of subdivision (1) of this 26 subsection, on and after January 1, 2024, in the first month in which a 27 family's total gross earnings exceed one hundred per cent of the federal 28 poverty level and for a period not to exceed six consecutive months, the 29 department shall disregard, for purposes of eligibility, a family's total 30 gross earnings in an amount not to exceed two hundred thirty per cent 31 of the federal poverty level. If a family's total gross earnings are an 32 amount between one hundred seventy-one per cent and two hundred 33 thirty per cent of the federal poverty level, the department shall reduce 34 the household's benefit by twenty per cent for the months in which 35 earnings are between one hundred seventy-one per cent and two 36 hundred thirty per cent of the federal poverty level. 37 (3) Notwithstanding the provisions of subdivision (1) of this 38 subsection, the commissioner shall disregard any financial assistance 39 received by a family member to the extent the commissioner determines 40 that such financial assistance was provided to the family member as part 41 of such family member's participation in a pilot program that has 42 developed a plan to study and evaluate the impact and potential 43 benefits of direct cash transfers. Such disregard shall be applied for the 44 length of time the family member participates in such program or 45 twenty-four cumulative months, subject to reauthorization by the 46 commissioner for a period of time not to exceed sixty cumulative 47 months. Any pilot program subject to the provisions of this subdivision 48 shall have received approval from the Department of Social Services to 49 conduct such pilot program based on the department's ability to receive 50 required waivers authorizing such income disregards in applicable 51 federal and state benefits programs. The department shall request 52 waivers authorizing such income disregards from all federal, state and 53 Substitute Bill No. 7104 LCO 3 of 5 local agencies as necessary. The department shall maintain a listing of 54 approved pilot programs for use by the public and department staff 55 when determining continuing eligibility of participants in existing 56 benefits programs. Before approving a pilot program, the department 57 shall review such program for long-term sustainability and ability to 58 meet the pilot program's programmatic and fiscal goals. The 59 department shall require an approved pilot program to (A) inform 60 potential participants, in writing in advance of participation in the pilot 61 program, of the potential impact of their participation on their current 62 and future eligibility for federal and state benefits, and (B) include 63 contact information in such written document to allow such participants 64 to obtain additional information or guidance on the impact of pilot 65 program participation on their eligibility for such benefits. 66 (4) Notwithstanding the provisions of subdivision (1) of this 67 subsection, the commissioner shall disregard from an income eligibility 68 determination any stipend received by a family member as part of such 69 family member's participation in a job training program approved by 70 the commissioner, including, but not limited to, payments from 71 programs offered by or through the Office of Workforce Strategy 72 established pursuant to section 4-124w, the Bureau of Rehabilitation 73 Services within the Department of Aging and Disability Services or a 74 private not-for-profit organization that is exempt from taxation under 75 Section 501(c)(3) of the Internal Revenue Code of 1986, or any 76 subsequent corresponding internal revenue code of the United States, 77 as amended from time to time. Such disregard shall be applied for the 78 length of time the family member participates in such program, not to 79 exceed thirty-six cumulative months. 80 Sec. 2. (Effective from passage) (a) For purposes of this section, "benefits 81 cliff" means the loss or decrease of public assistance program benefits 82 when a beneficiary's income exceeds eligibility thresholds. The 83 Commissioners of Social Services and Early Childhood, in consultation 84 with the Department of Housing, the Labor Department, the Office of 85 Workforce Strategy, established pursuant to section 4-124w of the 86 general statutes, and the two-generational initiative, established 87 Substitute Bill No. 7104 LCO 4 of 5 pursuant to section 17b-112l of the general statutes, shall, within 88 available appropriations, establish a pilot program to implement the 89 recommendations of the report concerning benefits cliffs that was 90 submitted to the General Assembly in accordance with the provisions 91 of special act 24-8. 92 (b) In developing the pilot program, the commissioners shall convene 93 and solicit input from professionals with expertise in the fields of 94 universal basic income, including, but not limited to, (1) professionals 95 from other jurisdictions who have worked on the implementation of 96 similar pilot programs, and (2) professionals who have expertise in 97 economics, housing, child welfare, labor, workforce development, social 98 services administration or legal representation issues concerning low-99 income recipients of state and federal public benefits. 100 (c) The Commissioners of Social Services and Early Childhood may 101 seek any waiver from federal law deemed necessary to implement such 102 pilot program and may pursue funding for such pilot program from any 103 governmental or nongovernmental source. 104 (d) Not later than December 1, 2025, and annually thereafter until the 105 pilot program is completed, the Commissioners of Social Services and 106 Early Childhood shall file a report, in accordance with the provisions of 107 section 11-4a of the general statutes, with the joint standing committees 108 of the General Assembly having cognizance of matters relating to 109 appropriations and the budgets of state agencies, education, housing, 110 human services and labor on the development of any pilot program 111 authorized pursuant to this section. 112 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2025 17b-112(d) Sec. 2 from passage New section Statement of Legislative Commissioners: In Section 1(d)(3), "up to sixty cumulative months" was changed to "for a period of time not to exceed sixty cumulative months" for clarity, in Substitute Bill No. 7104 LCO 5 of 5 Section 2(a), "produced in accordance with special act 24-8" was changed to "submitted to the General Assembly in accordance with the provisions of special act 24-8" for accuracy and in Section (2)(b), "pilots" was changed to "pilot programs" and subdivision designators and "professionals who" were inserted, for clarity. HS Joint Favorable Subst.