H.F. 610 Section 1. ECONOMIC OPPORTUNITY WORK GROUP. 1 1. The department of human services, the economic 2 development authority, the department of workforce development, 3 and the department of revenue shall convene an interagency work 4 group to collaboratively develop policy and system solutions to 5 address benefits cliffs and other barriers and disincentives in 6 public benefits programs that exacerbate workforce shortages, 7 limit business growth, and impede economic opportunities and 8 financial security for low-income families in the state. 9 2. The work group shall obtain input from affected consumers 10 to determine the priorities and challenges of low-income 11 families, and from public and private stakeholders including 12 but not limited to those with an interest or expertise in 13 business, workforce development, human services, education, 14 housing, community services, and other disciplines, as 15 appropriate. 16 3. The work group shall holistically review public benefits 17 programs and the benefits cliffs to identify structural flaws, 18 barriers, and disincentives in the public benefits system that 19 make it difficult for workers to achieve self-sufficiency, and 20 shall recommend restructuring and realignment opportunities 21 across programs and agencies to improve employment access and 22 economic stability for low-income families. 23 4. Specifically, with regard to the benefits cliffs, the 24 work group shall do all of the following: 25 a. Consider the report entitled “Moving On Up Helping 26 Families Climb the Economic Ladder by Addressing Benefits 27 Cliffs” published in July 2019 by the National Conference of 28 State Legislatures, and the options recommended in the report 29 relating to mapping benefits cliffs, aligning eligibility 30 levels, making work pay, increasing family economic security 31 through asset development, and fostering culture and system 32 changes in the public and private sectors, as well as state 33 activities that address benefits cliffs, the whole family 34 approach to economic opportunity, and others related to 35 -1- LSB 2147YH (7) 89 pf/rh 1/ 3

H.F. 610 fostering economic opportunity for low-income families. 1 b. Analyze the economic, demographic, policy, and 2 regulatory factors affecting the interplay between wages and 3 public and private benefits that result in total gross resource 4 stagnation for low-income families in order to better align 5 and maximize opportunities relating to factors such as earned 6 income eligibility levels, asset limits, income disregards, tax 7 incentives, access to transitional public program benefits, 8 asset development, and community and social network supports 9 across benefits programs to increase family financial security. 10 c. Determine a self-sufficiency standard for Iowans that 11 provides the income necessary for a family to meet basic needs 12 without public or private assistance as a basis upon which to 13 build work and economic security programs in the state. 14 d. Develop a benefits calculator for policymakers, 15 employers, consumers, and caseworkers to use in understanding 16 options and consequences when balancing income, benefits, and 17 community and social network supports and in mitigating the 18 effects of benefits cliffs. 19 e. Educate workforce development programs, employers, and 20 the community about the barriers low-wage workers confront 21 including the trade-offs between meeting immediate needs and 22 seeking socioeconomic advancement through employment. 23 f. Address the challenges related to the effects of benefits 24 cliffs on labor shortages to identify proactive solutions to 25 simultaneously advance family economic goals and work ambitions 26 while addressing labor shortages in an intentional and targeted 27 manner. 28 g. Evaluate the short-term and long-term fiscal impact on 29 the state budget of benefits cliffs reforms including those 30 achieved through new workers entering the labor market and 31 reduced reliance on the social safety net. 32 5. The work group shall submit a report of findings, 33 recommendations, and action steps to the governor and the 34 general assembly by November 15, 2021. 35 -2- LSB 2147YH (7) 89 pf/rh 2/ 3

H.F. 610 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill creates an economic opportunity work group to 4 address workforce shortages and economic stability. 5 The bill directs the department of human services, the 6 economic development authority, the department of workforce 7 development, and the department of revenue to convene an 8 interagency work group to collaboratively develop policy 9 and system solutions to address benefits cliffs and other 10 barriers and disincentives in public benefits programs that 11 exacerbate workforce shortages, limit business growth, and 12 impede economic opportunities and financial security for 13 low-income families in the state. The work group shall obtain 14 input from affected consumers to determine the priorities and 15 challenges of low-income families, and from public and private 16 stakeholders. The work group is tasked with holistically 17 reviewing public benefits programs and the benefits cliffs to 18 identify structural flaws, barriers, and disincentives in the 19 public benefits system that make it difficult for workers to 20 achieve self-sufficiency, and shall recommend restructuring 21 and realignment opportunities across programs and agencies to 22 improve employment access and economic stability for low-income 23 families. 24 The bill specifies tasks for the work group related to the 25 benefits cliffs, and requires the work group to submit a report 26 of findings, recommendations, and action steps to the governor 27 and the general assembly by November 15, 2021. 28 -3- LSB 2147YH (7) 89 pf/rh 3/ 3