HF 610 (LSB 2147YH (7) 89)

HOUSE FILE 610

BY  BROWN-POWERS

A BILL FOR

An Act creating an economic opportunity work group to address workforce shortages and economic stability.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  ECONOMIC OPPORTUNITY WORK GROUP.
   1.  The department of human services, the economic development authority, the department of workforce development, and the department of revenue shall convene an interagency work group to collaboratively develop policy and system solutions to address benefits cliffs and other barriers and disincentives in public benefits programs that exacerbate workforce shortages, limit business growth, and impede economic opportunities and financial security for low-income families in the state.
   2.  The work group shall obtain input from affected consumers to determine the priorities and challenges of low-income families, and from public and private stakeholders including but not limited to those with an interest or expertise in business, workforce development, human services, education, housing, community services, and other disciplines, as appropriate.
   3.  The work group shall holistically review public benefits programs and the benefits cliffs to identify structural flaws, barriers, and disincentives in the public benefits system that make it difficult for workers to achieve self-sufficiency, and shall recommend restructuring and realignment opportunities across programs and agencies to improve employment access and economic stability for low-income families.
   4.  Specifically, with regard to the benefits cliffs, the work group shall do all of the following:
   a.  Consider the report entitled “Moving On Up Helping Families Climb the Economic Ladder by Addressing Benefits Cliffs” published in July 2019 by the National Conference of State Legislatures, and the options recommended in the report relating to mapping benefits cliffs, aligning eligibility levels, making work pay, increasing family economic security through asset development, and fostering culture and system changes in the public and private sectors, as well as state activities that address benefits cliffs, the whole family approach to economic opportunity, and others related to fostering economic opportunity for low-income families.
   b.  Analyze the economic, demographic, policy, and regulatory factors affecting the interplay between wages and public and private benefits that result in total gross resource stagnation for low-income families in order to better align and maximize opportunities relating to factors such as earned income eligibility levels, asset limits, income disregards, tax incentives, access to transitional public program benefits, asset development, and community and social network supports across benefits programs to increase family financial security.
   c.  Determine a self-sufficiency standard for Iowans that provides the income necessary for a family to meet basic needs without public or private assistance as a basis upon which to build work and economic security programs in the state.
   d.  Develop a benefits calculator for policymakers, employers, consumers, and caseworkers to use in understanding options and consequences when balancing income, benefits, and community and social network supports and in mitigating the effects of benefits cliffs.
   e.  Educate workforce development programs, employers, and the community about the barriers low-wage workers confront including the trade-offs between meeting immediate needs and seeking socioeconomic advancement through employment.
   f.  Address the challenges related to the effects of benefits cliffs on labor shortages to identify proactive solutions to simultaneously advance family economic goals and work ambitions while addressing labor shortages in an intentional and targeted manner.
   g.  Evaluate the short-term and long-term fiscal impact on the state budget of benefits cliffs reforms including those achieved through new workers entering the labor market and reduced reliance on the social safety net. 
   5.  The work group shall submit a report of findings, recommendations, and action steps to the governor and the general assembly by November 15, 2021.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates an economic opportunity work group to address workforce shortages and economic stability.
   The bill directs the department of human services, the economic development authority, the department of workforce development, and the department of revenue to convene an interagency work group to collaboratively develop policy and system solutions to address benefits cliffs and other barriers and disincentives in public benefits programs that exacerbate workforce shortages, limit business growth, and impede economic opportunities and financial security for low-income families in the state. The work group shall obtain input from affected consumers to determine the priorities and challenges of low-income families, and from public and private stakeholders. The work group is tasked with holistically reviewing public benefits programs and the benefits cliffs to identify structural flaws, barriers, and disincentives in the public benefits system that make it difficult for workers to achieve self-sufficiency, and shall recommend restructuring and realignment opportunities across programs and agencies to improve employment access and economic stability for low-income families.
   The bill specifies tasks for the work group related to the benefits cliffs, and requires the work group to submit a report of findings, recommendations, and action steps to the governor and the general assembly by November 15, 2021.