i

NORTH CAROLINA’S TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

STATE PLAN

P.L. 104-193

THE WORK FIRST PROGRAM

NORTH CAROLINA DEPARTMENT OF HEALTH AND HUMAN SERVICES DIVISION OF SOCIAL SERVICES

Effective October 1, 2019 – September 30, 2022

ii TABLE OF CONTENTS Introduction .................................................................................................................. 4 State Welfare Legislation ............................................................................................. 7 Statewide Social Services Reform and Work First Goals ......................................... 7 Program Administration .............................................................................................. 8 Work First Eligibility Criteria (Standard Counties Unless Otherwise Noted) ........ 11 Non-Financial Eligibility Rules .................................................................................. 11 Financial Rules ........................................................................................................... 17 Application Process ................................................................................................... 18 Eligibility Reviews ...................................................................................................... 20 Child-Only Cases........................................................................................................ 20 Benefit Diversion (County Option) ............................................................................ 21 Medicaid and Food and Nutrition Services (MA/FNS)…………………...……….…..22 Work First Benefits Payment Policies………………..…………………………….……22 Electronic Funds Transfer (EFT)…………..……………………………………….……. 23 Electronic Benefit Transfer (EBT) Monitoring ......................................................... 24 Sanctions. ............................................................................................................... …24 Personal Responsibilities and Work Requirements..……………………….….....…..25 Mutual Responsibility Agreement (MRA)/Outcome Plan…………………….…….…26 Employment Assistance for Work Eligible Individuals……………………………….27 Work Responsibilities ................................................................................................ 27 Work Verification Requirements ............................................................................... 28 Child Care Definitions ................................................................................................ 29 Head Start/Early Education ....................................................................................... 30 Emergency Assistance (All Counties) ..................................................................... .30 Appeals Process ........................................................................................................ 31 Work First Services .................................................................................................... 31 Eldercare Training ...................................................................................................... 33 Homelessness ............................................................................................................ 33 Voter Registration ...................................................................................................... 34 Workforce Innovation and Opportunity Act (WIOA) ................................................ 36 Substance Use and Mental Health Initiative ............................................................ 36 Fraud and Abuse ........................................................................................................ 38 Out-of-Wedlock Births ............................................................................................... 39 Statutory Rape ............................................................................................................ 39

iii Formation and Maintenance of Two-Parent Families .............................................. 40 American Indian Tribal Plan ...................................................................................... 40 Individual Development Accounts (IDA) .................................................................. 41 Confidentiality ............................................................................................................ 41 Family Violence Option .............................................................................................. 41 Local Demonstrations or Pilot Programs ................................................................. 42 TANF Eligible Families ............................................................................................... 42 Gender Equality .......................................................................................................... 45 Use of Funds .............................................................................................................. 45 Maintenance of Effort ................................................................................................. 46 Implementation ........................................................................................................... 47 Americans With Disabilities Act Requirements (All Counties) .............................. 47 Title VI Requirements (All Counties) ........................................................................ 50 Certifications Required of the Governor .................................................................. 51 Appendix A, Electronic Funds Transfer ................................................................... 52 • Procedures and Strategies ........................................................................ 52 • Policies and Fees ……………………………………………………………….53 • Ensuring Adequate Access …………………………………………………...54 • Misuse …………………………………………………………………………….54 • Monitoring ………………………………………………………………………..54 Appendix B, Work Over Welfare in Cabarrus County ............................................. 56 Appendix C, Electing County Protocols ................................................................... 57 Appendix D, Summary of Public Comments Received……………………………….65

North Carolina

4 WORK FIRST STATE PLAN TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)

INTRODUCTION

Vision and Mission The NC Department of Health and Human Services (NC DHHS) works to advance the health, safety, and well-being of all North Carolinians in collaboration with a wide array of partners and stakeholders. Much of this work involves managing the delivery of services to North Carolina’s most vulnerable populations, including children, seniors, people with disabilities, and low-income individuals and families. DHHS touches the lives of millions of North Carolinians and our goals reflect the wide range of programs administered and service populations.

Goals NC DHHS believes health is affected by many factors beyond the medical care provided within the four walls of a hospital or clinic. While access to high-quality medical care is critical, research shows up to 80 percent of a person’s health is determined by social and environmental factors and the behaviors that emerge as a result. A substantial body of research has established that having an unmet resource need — including experiencing food insecurity, housing instability, unmet transportation needs and interpersonal violence or toxic stress — can significantly and negatively impact health and well-being. It can also increase healthcare utilization and costs. To that end, NC DHHS has innovative programs to help connect people to needed resources to improve their health and well-being.

Departmental Goals for 2019-2021 are to: 1. Advance the health and well-being of North Carolinians utilizing the programmatic tools of the Department. 2. Build an innovative, coordinated, and whole-person centered system that addresses both medical and non-medical drivers of health. 3. Turn the tide on North Carolina’s opioid crisis. 4. Ensure all North Carolina children get a healthy start and develop to their full potential in safe and nurturing families, schools and communities. 5. Achieve operational excellence.

These goals support our key work to: • Buy health for people through our Medicaid program, including working with underserved communities to improve access to quality health care and reduce health disparities. • Safeguard public health by protecting communities from communicable and chronic diseases, epidemics, and contaminated food/water. • Protect the safety, security and well-being of children and vulnerable adults. • Support individuals with disabilities and older adults in leading healthy and fulfilling lives. • Promote family economic independence and self-sufficiency. • Ensure high standards in the many health care facilities we operate or regulate.

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5 North Carolina’s TANF Program North Carolina’s Temporary Assistance for Needy Families (TANF) program, called Work First (WF), is one of the many programs that connects families to resources to support wellness and economic self-sufficiency. The program is based on the premise that parents have a responsibility to support themselves and their children.

The Work First program promotes a strengths-based, family-centered practice approach and shares in the mission of the NC DHHS, in collaboration with its partners, to protect the health and safety of all North Carolinians and provide essential human services. NC DHHS is responsible for establishing, supervising and monitoring the Work First Program. At present, all services and benefits are delivered by county department of social services in North Carolina’s 100 counties.

Work First provides parents with short-term training and other services to help them become employed and move toward self-sufficiency. Other families, in which grandparents and relatives are caring for their relative children and legal guardians can receive services and support that prevent children from unnecessarily entering the foster care system. Of all TANF caseloads, grandparent and relative cases represent the highest caseloads in North Carolina.

Ultimately, North Carolina’s goal is to help all families move to self-sufficiency. Many families can successfully leave the Work First program. Others, because of a hardship or disability, may have a harder time becoming self-sufficient. With those families, the role of the Work First program is to ensure that families receive all available benefits and services, such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Vocational Rehabilitation.

North Carolina’s success at helping families move from Work First to work thus far has led to a broadened focus for the Work First program. No longer is the focus just on helping those families who receive Work First Cash Assistance obtain employment. North Carolina has added the flexibility and program structure for counties to provide former Work First families with job retention and child and family enrichment services designed to help ensure families experience long-term success. Further, since child support is critical to ensuring families’ success, North Carolina allows counties to provide work-related services to non-custodial parents of Work First children.

In North Carolina, Work First emphasizes three goals for its Work First programs and has identified the following strategies:

Goal 1: Diversion Support families in their efforts to maintain self-sufficiency through unexpected emergencies by providing short-term assistance and resources. Strategy 1: Connect qualifying families with Benefit Diversion, Emergency Assistance, and/or Work First Services for Low-Income Families below or at 200% of the Federal Poverty Level

Strategy 2: Provide Employment Services for Non-Custodial Parents and other supportive services, if applicable.

Strategy 3: Align resources and referral processes for unexpected emergencies (i.e. food, housing and other needs) with NCCARE360.

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6 Goal 2: Achieving Sustainable Employment Families receiving cash assistance and Work First Family Services will obtain sustaining employment Strategy 1 Make work a mandatory program requirement with certain exceptions.

Strategy 2 Limit how long a family can receive Work First cash assistance. Once the participants move into the work components of the program, they can continue to receive benefits for up to 24 months. In most cases, families who have reached the 24-month limit cannot receive Work First Cash Assistance for three years. Federal law sets a 60- month cumulative lifetime limit for receiving these benefits.

Strategy 3 Require all adults who are included in the assistance payment to sign a Mutual Responsibility Agreement (MRA)/Outcome Plan. Goal 3: Retaining Stable Employment Families who exit Work First will remain self-sufficient. Strategy 1 Provide families with tools to save money and help to make sure they really are better off working than on Work First.

Strategy 2 Increase in resource limits to ease the burden on low-income families pursuant to the change from Aid to Families with Dependent Children (AFDC) to Work First.

Strategy 3 Raise income eligibility limits for families who receive subsidized child care to help families stay employed in2014 by state legislature.

Strategy 4 Counties to continue providing services, such as transportation, child care, financial counseling, short-term training, and child and family enrichment services to families whose income is at or below 200% of the federal poverty level.

Strategy 5 Families leaving Work First cash assistance for work may receive a Job Bonus payment for up to three months.

Ensuring optimal health and well-being of all North Carolinians is of the utmost concern. Toward that end, North Carolina has taken advantage of the opportunity offered by the TANF Block Grant to enhance our efforts in this area.

The NC TANF program provided services to approximately 91,537 cases with 166,089 participants during the previous state plan years. Adult recipients that remain on the caseload have multiple barriers that include but are not limited to medical and mental health issues, learning disabilities, lack of skills and work experience.

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7 State Fiscal Year Caseload Size # of Participants FFY 2015 28,784 57,565 FFY 2016 30,881 59,2017 FFY 2017 27,636 52,784 FFY 2018 24,999 46,572

Due to the changes in the work requirements associated with the program, low Work First benefit amounts, and increase in the job market in NC, the Work First program has and continues to experience a continuous decline in individuals applying for assistance.

In accordance with federal law, TANF funds, as well as Maintenance of Efforts (MOE) funds must meet one of four purposes. The four purposes under TANF are:

1. Assist needy families so that children may be cared for in their own homes or in the homes of relatives; 2. Reduce dependence of needy parents by promoting job preparation, work, and/or marriage; 3. Prevent or reduce the incidence of out-of-wedlock pregnancies; and 4. Encourage the formation and maintenance of two-parent families.

STATE WELFARE LEGISLATION

North Carolina General Statute 108A-27 provides for TANF program development by local county governments. The law refers to counties as Standard or Electing. Standard Counties operate the state’s Work First program based on the policies written in the Work First Manual, while Electing counties have additional flexibility in program design that allows the county to determine the county’s eligibility criteria and payment options. All counties have maximum flexibility in designing their employment programs to meet local needs. However, state law provides that Electing Counties, when combined, can contain no more than 15.5% of the state’s Work First cases. The state’s and each Electing County’s eligibility criteria are described later in this document. Throughout this plan, all references to “Electing counties” refer to those counties that have been approved as Electing.

STATEWIDE SOCIAL SERVICES REFORM AND WORK FIRST GOALS

Rylan’s Law (Session Law 2017-41) is state legislation enacted in July 2017 which governs a legislatively required, statewide reformation of North Carolina’s social services programs. Recent studies indicated more accountability and oversight are needed for County Departments of Social Services to produce better performance and outcomes. By March 1, 2020, Rylan’s Law requires the establishment of regional offices that provide closer, more direct, regional supervision and support to County Departments of Social Services. Each County Department of Social Services will be part of a region of counties, and state-level DSS staff will monitor and support these regions. Regionalization means that the State will provide regional supervision and support to the counties, which will continue to locally administer social services. This approach does not supplant, abridge, or in any other way change the traditional role of the counties in

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8 administering social services.

Among other important changes, Rylan’s Law requires all 100 county departments of social services to enter into an annual performance agreement with DHHS for all social services programs, excluding Medicaid. The agreement contains performance requirements and administrative responsibilities that were developed in consultation with county departments of social services. Ultimately, a data dashboard will be available to the public, so counties and citizens can easily access program data and performance.

Included in the performance metrics are goals for the Work First program. The goals and performance measures established below will reinforce efforts to improve the work participation performance for North Carolina’s Work First program. There are four performance measures for North Carolina’s Work First program by which county departments of social services/agencies will be measured for compliance, pursuant to Rylan’s Law:

1. Meeting Federal Work Participation Rates for All Families. Counties must ensure that at least 50% of all Work Eligible Individuals, as defined by federal rule, complete the required number of hours of federally countable work activities.

2. Meeting Federal Work Participation Rates for Two-Parent Families. Counties must ensure that at least 90% of all two-parent families with Work Eligible Individuals, as defined by federal rule, complete the required number of hours of federally countable work activities.

3. Work First Applications Counties will process 95% Work First applications within 45 days of receipt.

4. Work First Recertifications Counties will process 95% Work First recertifications no later than the last day of the current recertification period.

Rylan’s Law provides North Carolina with a blueprint for collectively transforming North Carolina’s social services system and speaks to the systemic changes that are needed to improve outcomes for families and children served by social services programs statewide. This reorganization includes our shifting from the current central state- supervised locally administered system structure to a model of regional supervision which provides better support, technical assistance, and compliance monitoring of social services programs and services.

PROGRAM ADMINISTRATION

All services and benefits provided under the Work First program are delivered locally by county departments of social services/agencies in each of North Carolina’s 100 counties. While electing counties have the option to offer alternative delivery options through community services providers, the county department of social services remains ultimately responsible for service delivery.

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9 The state office is responsible for monitoring for program compliance with state and federal laws and policies. The TANF State Plan has been reviewed and informed by stakeholders from a variety of state agencies and community partners to ensure compliance with State and Federal law and the goals of the Work First program. Agencies and state partners include: The Attorney General’s Office, Department of Health and Human Services (Division of Vocational Rehabilitation, Division of Child Development and Early Education, Division of Mental Health/Developmental Disabilities and Substance Use Services, North Carolina Families Accessing Services Through Technology (NC FAST), Child Support Enforcement, Child Welfare, Fiscal Compliance Monitors, Office of Economic Opportunity, and Performance Management, and Workforce Innovation and Opportunity Act (WIOA) funded agencies..

Electing counties developed a county Work First block grant plan, including descriptions of strategies to achieve the measurable statewide outcome goals and performance measures as described in this plan. Electing county plans must involve a broad range of public, private, and nonprofit groups. Triennially, each Electing County must submit to the Department of Health and Human Services a local block grant plan that describes its proposal for the following:

• Work First Employment Services Program, • Eligibility criteria for Work First cash assistance and other Work First Services, • Emergency Assistance Program, • Benefit Diversion Program (Optional), • Provision of Work First Services to low-income families, • Provision of Work First Services to former Work First recipients (Optional), and • Provision of Work First Services to non-custodial parents of Work First children (Optional).

Electing Counties shall give the public an opportunity to review and comment on their local block grant plans before submitting to the department. The county board of commissioners must appoint a committee of individuals to identify the needs of the population to be served and to review and assist in developing the county block grant plan in response to the needs. Membership of the committee must include but is not limited to: representatives of the county board of social services, the board of the Local Management Entity/Managed Care Organization (LME-MCO) for Mental Health, Developmental Disabilities and Substance Abuse Services, the local public health board, the local school systems, the business community, the board of county commissioners and community-based organizations that are representative of the population to be served. In addition, faith-based organizations, service recipients, and other non-profits with experience in serving the population should be included. The department provides to all counties a model for use in developing an electing county plan.

The electing county block grant plan should include public and private resources that will help families move to self-sufficiency and should describe how services, such as child care, transportation, housing, and skills training will be used. The plan must include the county’s priorities for serving families who need child care, based on the needs of the community and the availability of services and funding. Following review by the county social services board and other parties, the county commissioners must approve the county block grant plan before it is submitted to the department.

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10 Standard Work First counties must have the current information and/or detailed policy criteria on the below items placed on file at the county department/agency of Social Services by the beginning of each State Fiscal Year (SFY) for Work First program compliance:

A Memorandum of Agreement (MOA), contract, or protocol for collaboration with the below agencies: • Division of Workforce Solutions – NCWorks Career Centers • Domestic Violence Agency • Local Management Entity – Manage Care Organization • Vocational Rehabilitation

Local policy for the following services (guidelines specified, payment limits, etc.) • Benefit Diversion Survey for current SFY • Emergency Assistance • Exemption from the work requirement for single parents of children under age one • Services for low-income families at or below 200% or 150% of the Federal Poverty Level • Services for non-custodial parents (service optional) • Transportation

Electing Counties and Standard Counties have the same level of flexibility in designing their employment services programs to meet the federal participation rates and statewide Work First goals while addressing local circumstances. However, Electing Counties also have the opportunity to establish their own eligibility criteria and benefit levels.

In November 2017, seven (7) counties notified the Department of their desire to be designated as Electing Counties. The Department of Health and Human Services, Division of Social Services, recommends that the following counties be designated as Electing Counties for the next three-year cycle: Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and Wilson.

The Department has the responsibility to ensure that the Work First program in all counties complies with Federal and State law and the Work First goals. Under State Law, Electing Counties’ caseloads combined cannot exceed 15.5% of the Work First caseload on September 1 of each year.

Representatives from the following agencies of state government reviewed all the Electing County plans: Attorney General’s Office, Child Support Services, Child Welfare Services, Division of Social Services, Fiscal Compliance Monitors, Local Business Liaison Representatives, Office of Economic Opportunity, DHHS Operational Support Team, NC FAST Representatives, and Performance Management.

The caseloads of the counties requesting Electing status, in aggregate, are well below the 15.5% minimum, it was not necessary to rank the plans. The plans for Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and Wilson will comply with applicable laws, rules, and regulations. All counties will be recommended to the General Assembly to be approved as an Electing County.

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11 State law (NCGS 108A-27(e)) requires a county that desires to be re-designated shall submit a request in writing to the Department at least six months prior to the effective date of the next State Plan. Funding for all counties is specified in the State law. For Electing Counties, block grants are based on the percentage of each county’s total AFDC and JOBS expenditures to statewide actual expenditures in 1995-96. For Work First cash assistance, the resulting percentage is applied to the total budgeted funds for Work First cash assistance for each year. Electing Counties’ eligibility criteria and processes are described In Appendix A. Many Electing Counties chose to follow some of the Standard County rules. When and if Electing County rules change to be the same as those of Standard Counties, no State Plan amendment will be submitted. If changes other than to conform to Standard County rules are made, an amended State Plan will be submitted. The responsibilities of the recipient and the county are outlined in a Mutual Responsibility Agreement (MRA)/Outcome Plan. The MRA/Outcome plan describes steps the family will take to become self-sufficient and the supportive services the county will provide.

Standard counties maintain required protocols and policies for services on file at the local county department of social services/agencies for State Fiscal Year (SFY) monitoring. All counties (Standard and Electing) are monitored to ensure compliance with program requirements.

North Carolina Department of Health and Human Services, Division of Social Services has a Memorandum of Agreement (MOA) with the North Carolina Department of Commerce, Division of Workforce Solutions (DWS), Division of Mental Health, Developmental Disabilities and Substance Abuse Services (DMH/DD/SAS), and the Division of Vocational Rehabilitation Services (DVRS). These agreements outline the services that will be provided by each agency to ensure that the needs of Work First participants are met.

The Division requires the local county departments of social services/agencies to collaborate and coordinate services with the local NCWorks Career Centers, the Division of Vocational Rehabilitation, area mental health providers, the Department of Public Instruction and the Head Start State Collaboration Office to provide services to assist Work First participants in obtaining employment and moving towards self-sufficiency. The Department encourages counties to partner with local resources and community agencies to assist Work First participants.

WORK FIRST ELIGIBILITY CRITERIA (UNLESS OTHERWISE NOTED)

Receipt of Work First is based on both non-financial and financial criteria. Electing Counties will follow Standard Counties Work First Policy, except as indicated in the county specific plan.

NON-FINANCIAL ELIGIBILITY RULES

In addition to signing the MRA/Outcome Plan and work requirements, families must meet certain eligibility rules to receive Work First cash assistance. The basic eligibility rules are described below.

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12 1. Children must be age 17 or younger at application. Children may receive through the month that they turn 18. Children age 18 if in high school and expected to graduate by the month of their 19th birthday, can receive through the month they graduate from high school. Emancipated minor parents are considered adults and treated as such for Work First.

2. Children and adults who receive Social Security Income (SSI) are not included as recipients in the Work First cash assistance case. If a parent is applying for Work First cash assistance, they only have one child, and that child receives SSI or adoption assistance, the parent may receive assistance with a payment for one person.

3. Parents, including biological, adoptive, or stepparents, must be included with their child(ren) in the Work First cash assistance case. All siblings, stepsiblings and half siblings living together must also be included in the case. If both biological parents and adoptive parents are living in the same residence with a child, the adoptive parents must apply and be included, but the biological parents may not.

4. If the child’s parent and an individual who has legal custody or guardianship reside in the home with the child, only the individual who has day-to-day care of the child may apply for and receive Work First cash assistance for that child. The child’s parent is included in the case, and child support must be pursued. The parent’s income must be counted in this case. The parent must sign an MRA/Outcome Plan and is expected to complete the work participation requirements unless the parent meets one of the exemptions from the definition of Work Eligible Individuals.

5. Children for whom Foster Care and/or Adoption Assistance payments are being made are not included as recipients.

6. Certain relatives, or a person with legal custody or legal guardianship, may apply for assistance for a child but may not be included in the payment. These cases are child-only cases. The following relatives qualify to apply for a child:

• a blood or half-blood relative or adoptive relative limited to: brother, sister, grandparent, great-grandparent, great-great-grandparent, uncle or aunt, great-uncle or aunt, great-great-uncle or aunt, nephew, niece, first cousin, and spouses of anyone listed above even after the marriage has been terminated by death or divorce; and • the kinship rule does not include the spouses of step-relatives. In addition, a step-brother or step-sister may also apply for a child but cannot be included in the payment.

7. An adult or child cannot receive TANF Assistance in more than one case in North Carolina or any other state for the same month.

8. An individual can be the payee for one Work First cash assistance case at a time.

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13 9. Undocumented immigrants are not eligible to receive Work First. North Carolina elects to provide assistance to cover all optional non-citizen populations allowable under federal law.

10. A family cap on assistance is in effect. This means a family’s Work First cash assistance payment will not increase when a child is born ten (10) months after a month in which a parent received Work First cash assistance. There are some exceptions to the family cap rule, as follows:

• A child who is the firstborn (including all children of a multiple birth) of a minor who is a dependent child. • A child who is conceived as a result of verifiable rape, sexual assault, or incest. • A child for whom parental custody has been legally transferred to someone other than the parent. • A child no longer able to live with their parent due to the parent’s death, the parent’s incapacity or disability, or the parent’s incarceration or institutionalization if expected to last at least three months. • A child who is the only child in the family unit.

11. Minor parents (under age 18), unless emancipated, must meet special requirements:

• They must stay in school to complete their high school education, or its equivalent. When a minor parent has not completed high school or has not received a GED, or is suspended or expelled from school, the minor parent must participate in an appropriate educational, training, or other work activity. • They must live with a parent or in another adult-supervised setting approved by the county director or the director’s designee. Payments will be made to an adult as a substitute payee, and not to the minor parent.

12. There is a five-year, lifetime limit on receipt of federal TANF assistance. Unless a hardship exemption is granted, a family is not eligible for Work First cash assistance if it contains an adult who has received Work First cash assistance in North Carolina and/or TANF assistance from another state for 60 cumulative months. The five-year lifetime time limit began in North Carolina on January 1, 1997.

A family may request a hardship exemption if the 60-month time limit has been exhausted. The county social services governing board, or its designee, will determine if an exemption will be granted based on guidelines established by the department. The board or its designee must determine that:

• Both the family and the agency have made good faith efforts to resolve the problems causing the hardship during the 60 months of receipt of Work First cash assistance. • Whether the participant is experiencing hardship as defined in the Work First Manual. Such hardships include, but are not limited to, situations where a family member has been battered or subjected to extreme cruelty, where the

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14 family is dealing with a severe illness of children or parents, or where there is a combination of factors that together constitute a hardship. • Whether the hardship condition is severe enough to prevent the parent from working on a regular basis.

Adults included in cases that have been granted hardship exemptions are expected to have an MRA Plan of Action/Outcome Plan in place that addresses each identified hardship criterion. Families are expected to work toward resolution of the problems as appropriate. Counties are expected to continue to provide necessary services to enable the family to work towards resolution of these issues. Exemptions can be granted for one to six months. At the end of the exemption period, the family may request another exemption.

Good cause considerations include, but are not limited to:

• Disability of the caretaker; • Disability of a child or other family member requiring the caretaker to remain at home and provide care; • Family crisis or change including, but not limited to, death of a spouse, parent, or child; • Lack of necessary child care; and • Other unique circumstances that prevented the participant from getting or keeping a job as determined by the Board or its designee.

13. There is a state 60-month lifetime limit of assistance in North Carolina, to custodial parents who receive Work First Family Assistance for their children. Parents who receive Supplemental Security Income (SSI) are excluded from this policy.

14. In addition to the five-year federal lifetime limit, families who are active in North Carolina’s Work First Employment Services are limited to 24 cumulative months of cash assistance, unless an extension as described below is granted. Families may re-apply for Work First after being off assistance for 36 months. All counties are required to review all Work First cases no later than three months prior to the end of the 24-month time limit.

The review is to:

• Ensure that time limits have been tracked correctly; • Ensure the family is informed about other services; • Provide an extension if the family qualifies; and • Review the family status and assist them in identifying resources and support they need to maintain employment and family stability.

Up to 20% of Work First recipients may be enrolled, at least part-time, in a post- secondary education program. Recipients who are enrolled at least part time and who maintain a 2.5 grade point average (or its equivalent) shall have their two-year time limit suspended for up to three years.

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15 Families may request an extension of the 24-month time limit at the end of the 24-month period or anytime following termination, including any time within the 36-month period of ineligibility. An extension may be requested verbally or in writing.

The county Board of Social Services, or their designee, will consider and decide on whether an extension will be granted. The board or its designee must determine:

• If the Work First participant substantially complied with the MRA/Outcome Plan, including considerations for any good cause exceptions. • If the Work First participant, through no fault of his own, is unable to obtain or maintain employment that provides a basic level of subsistence. To determine this, the Board or its designee will compare the family’s net monthly income to the maximum Work First payment for the family size. If the net monthly income is equal to the maximum Work First payment or greater, the family cannot receive an extension. • If the participant is experiencing extenuating circumstances.

If an extension is granted, the Board or its designee must determine the length of the extension. Each extension must be a minimum of 1 month to a maximum of 6 months with no limit on the number of extensions (within the 60-month lifetime limit).

Good cause considerations include, but are not limited to:

• Disability of the caretaker; • Disability of a child or other family member requiring the caretaker to remain at home and provide care; • Family crisis or change including, but not limited to: death of a spouse, parent or child; • Lack of necessary child care; and • Other unique circumstances determined by the Board or its designee that prevented the participant from getting or keeping a job.

15. All Work First applicants (i.e., every member of a case) must have a social security number or apply for a social security number if they do not have one. Unless an individual has a social security, number or applies for one, that individual is not eligible for Work First.

16. Individuals who are temporarily absent from the home for fewer than 90 consecutive days may continue to be eligible for Work First. Individuals who are absent from the home for more than 90 consecutive days but fewer than 12 months may continue to be eligible for Work First, if they have good cause for the absence. Good cause includes absences for medical treatment, substance use treatment, and health care. For children, good cause also includes absences for educational requirements.

17. An adult must report to the caseworker when a child is expected to be absent from the home for 90 consecutive days or longer. The adult must report the child’s absence within five days of knowing the absence would exceed 90 consecutive days. Failure to report the absence within five days makes the adult ineligible for three months beginning the month after failing to make the report.

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18. An individual who is convicted of misrepresenting their residence to receive Work First, Medicaid, SSI, or Food and Nutrition Services (FNS) in more than one state or more than one location in North Carolina is ineligible for Work First cash assistance for ten years beginning on the date of conviction.

19. Incarcerated or institutionalized individuals are not eligible for Work First cash assistance.

20. A family must apply for Work First cash assistance in the county of their residence. However, if the recipient moves to another county, the Work First case will transfer to the new county of residence.

21. Work First cash assistance payment received solely because the timely notice (10- day notice) requirement prevents appropriate action to reduce or stop benefits is not considered an overpayment and does not have to be repaid.

22. Individuals who have been convicted of a Class H or I controlled substance felony in North Carolina may receive Work First cash assistance, or other services under the following conditions:

• The individual may be eligible six months after release from custody; or • Six months after the date of conviction if the individual was never committed to custody; • And if there is no additional controlled substance felony offense during that time; • And the individual completes or continues appropriate substance use treatment as determined by the Local Management Entity. Individuals receiving Work First under these conditions are required to undergo substance use treatment as a condition of eligibility.

23. Families must legally reside in the state to receive assistance. Families that have moved to North Carolina after receiving cash assistance in another state will not be treated differently from current residents.

24. Work First cash assistance overpayments are recovered from the family, as allowed under state law or rule. This includes fraud, intentional program violations, and inadvertent errors by the family.

25. For Work First cash assistance cases, all changes are required to be reported by the family to the county within 10 calendar days of the date the change becomes known. This includes changes in income. All changes must be processed by the county within 30 calendar days of the report.

26. The certification period for Work First Services for families with income at or below 200 percent of the federal poverty level may be for a period of up to twelve months. Once certified, a family’s eligibility does not need to be reviewed until the certification period ends.

27. All applicants and recipients for Work First must provide verification of citizenship, qualified immigrant status, and identity.

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28. Any family that includes an adult who has quit a job without good cause, or has been fired from a job with cause, is ineligible for Work First payments the month of the job quit or firing and the two months immediately following.

29. The following applicants/recipients are subject to the substance use screening and testing requirement: single parents (biological, adoptive and step); both parents (biological, adoptive and step) of a two parent household; emancipated teen parent, as defined by Work First Manual Section 109, Age Rule for Children; any parent being added to an existing Work First case; parents who have been disqualified due to an Intentional Program Violation (IPV); parents who are ineligible due to fleeing felon and/or parole/probation violator status; parents with a Class H or I controlled substance felony conviction in North Carolina; and custodial parents who receive Work First Family Assistance for their children.

The substance use screening and testing requirement does not apply to: child only cases with a non-parent caretaker as the case head; dependent children; or Supplemental Security Income (SSI) recipients.

FINANCIAL RULES

1. Resources that can be readily converted to cash will be counted toward a $3,000 limit. “Readily converted” means the asset can be converted to cash within 5 business days.

2. All vehicles are excluded.

3. To calculate the payment, all income of Work First recipients is counted, except the earnings of children, and the income of SSI recipients, Foster Care Assistance, Adoption Assistance, and the Earned Income Tax Credit, unless other law or regulation excludes an income type.

4. Countable income of all family members included in the case is counted. Income of parents who live in the household and are excluded from the case is counted as if they are included in the case. The exception is that no income of SSI recipients is counted.

5. For unearned income, the actual amount received is the amount counted in calculation of the payment.

6. For earned income, percentages are subtracted from the total monthly gross income as follows: 27.5% of gross earned income is excluded.

7. Job bonus is awarded to parents with new earnings for a maximum of or up to 3 months. • The job bonus is offered to participants whose earned income terminates them from Work First cash assistance. • The job bonus applies to new earned income that begins after the application is approved for Work First. The job bonus is applied for employment that is expected to be permanent and income terminates a participant from Work First cash assistance.

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18 • The job bonus can be applied once in a lifetime for each Work First family who becomes employed.

8. The Work First monthly payment is 50% of the difference between the total countable income and the need standard.

The need standard is based on the number of eligible family members:

Number on Work First 1 2 3 4 5 6 7 8 Need Standard $362 $472 $544 $594 $648 $698 $746 $772 Number on Work First 9 10 11 12 13 14 Each additional Need Standard $812 $860 $896 $946 $992 $1,042 Add $50

• A family remains eligible if the result of the payment calculation is twenty- five dollars ($25.00) or more. Payments, including prorated payments for the month of application or termination, will not be made for less than twenty-five dollars. • For the month of application, Work First payments are prorated from the date of application with the date of application being day one. Otherwise, payments are made for the full month.

9. Proceeds from non-recurring lump sum payments are counted as a resource beginning the month after the month of receipt for ongoing cases. For pending applications, the non-recurring lump sum payment is counted as income in the month of receipt and as a resource beginning the month after the month of receipt.

10. When an adult Work First recipient or applicant is potentially eligible for other government benefits, such as Unemployment Insurance Benefits, the adult is required to apply for those benefits. If the adult fails to apply by the deadline established by the county or the adult refuses to apply, the family is not eligible for Work First.

11. Certain families, as defined in the Work First Manual, may be required to report income, participation hours, and other information to their county department of social services/agencies. Failure to submit a timely report results in termination of Work First assistance. The reporting process will be defined in the Work First Manual.

APPLICATION PROCESS

County departments of social services/agencies are responsible for developing a benefit package as quickly as possible to help families move toward self-sufficiency. As appropriate, counties should offer families other services to enable them to remain off Work First cash assistance. Such services include Diversion Assistance (Benefit Diversion or Emergency Assistance), child support services, child care, and job placement services. Diversion Assistance must be based on a family’s specific crisis or episode of need and may not be used for ongoing or recurrent needs.

The time limit for processing applications for Work First cash assistance is 45 days. It is

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19 expected that most applications will be processed well within this time limit. In general, it is the applicant’s responsibility to provide all the information, including verifications, needed to determine eligibility. Applicants may request assistance in obtaining information. The agency’s obligation to assist the applicant is described in the Work First Policy Manual.

Applications may be denied within the 45-day processing period for any of the following reasons:

• The applicant fails to provide information needed to determine eligibility; • The applicant refuses or fails to apply for unemployment benefits, when monetarily eligible, or refuses or fails to apply for other benefits, such as Social Security or veteran’s benefits, for which he/she may be eligible; • The agency is unable to locate the applicant; • The applicant refuses or fails to apply for a required family member; • The applicant refuses or fails to sign an MRA/Outcome Plan (either Core Requirements or Plan of Action/Outcome Plan, if required); • The applicant fails, without good cause, to keep an appointment and has not contacted the agency concerning his/her application; and • Ineligibility has been verified including situations in which the applicant’s statement results in ineligibility.

For any action or verification of information required of applicants, county departments will not deny an application without giving the applicant a written request for the action or verification, specifying a deadline that allows at least 10 calendar days in which to meet the requirement. The county must provide appropriate accommodations to assist applicants with limited language proficiency or disability in obtaining needed documentation.

Counties will not deny applications for the above reasons if good cause exists. Good cause is defined as:

• A significant family crisis or change including, but not limited to, the death of a spouse, parent, or child; • Illness of the caretaker or child, including participation in substance abuse treatment or attendance at a medical appointment; • Civil leave, including jury duty, or a required court appearance; • Lack of child care for parent and/or a minor parent in school, training, or other work activity; or • Any other reason determined by the county director or his or her designee.

An application for Work First cash assistance is valid for a 45-day period. If the application is denied before the 45th day, eligibility for Work First cash assistance can be established at any time within the 45-day period without requiring a new interview, assessment or Documentation Workbook. This is dependent on the county worker having all information and documentation required to make the eligibility determination with the 45-day period.

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20 ELIGIBILITY REVIEWS

Frequent contact with Work First families is critical in ensuring their success at moving to employment. Counties are strongly encouraged to review a family’s progress on the terms of the MRA Plan of Action/Outcome Plan at least every three months. Families that do not participate in or allow the county to complete the periodic review will lose their Work First payment for at least one month. The family may re-apply for Work First, but eligibility can begin no earlier than the first of the month following the month of ineligibility. A face-to-face interview must be conducted, and eligibility re-determined at a minimum of every 12 months.

The Work First worker must provide or arrange for appropriate accommodations for families with limited English proficiency or with disabilities to ensure reviews are conducted as scheduled.

CHILD-ONLY CASES

In alignment with North Carolina’s 2019-2024 Child and Family Services Plan (CFSP), strategic priorities include ensuring safety, permanency and well-being needs are met for all children involved with child welfare services. This includes providing support to meet the diverse needs of relatives and kin who are caring for children in the child welfare system. Namely, by 2024, NC’s CFSP aims to decrease the number of days it takes a child to exit foster care and increase the rate of permanent exits (reunification, adoption, guardianship, custody).1This goal reflects certain requirements identified in Rylan’s Law, as well as the Family First Prevention Services Act which has an increased focused on family-based placements and supports for kinship caregivers. County departments of social services/agencies are encouraged to provide family enrichment services to child- only cases and to conduct home visits. Children in child-only cases are likely to be “known” to the child welfare system. Often the child resides with a relative or kin rather than in the foster care system.

In terms of eligibility, child-only cases must be reviewed within six (6) months after the application has been approved and at least every 12 months thereafter. All reviews require a face-to-face interview. Counties must evaluate and determine whether additional contact is needed for individual families. In child-only cases there are several provisions that makes a family non-compliant. Some of these provisions include but are not limited to:

1) Child support non-cooperation, 2) Sanctions for failure to meet MRA provisions (child only); • Failure to have children who receive assistance appropriately immunized and required Health Checks and; • Failure to ensure children who receive assistance stay in school. • Failure to report changes in situation within ten days of knowing of the change; such as income and family composition, that affects the payment;

1 Also aligns with North Carolina’s Early Childhood Action Plan (ECAP) which outlines a cohesive vision, sets benchmarks for impact by the year 2025, and establishes shared stakeholder accountability to achieve statewide goals for young children from birth through age 8. Visit here for more information: https://www.ncdhhs.gov/about/department-initiatives/early-childhood/early-childhood-action-plan

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21 • Failure to keep all scheduled appointments with the Work First case worker • Failure to obtain immunizations and regular medical exams for children receiving WFFA; • Failure to report information, • Failure to comply with the Minor Parent Rules, which requires the Minor Parent to be enrolled in and regularly attend school and live with their parent, legal guardian, or other appropriate adult; 3) Failure to complete review or complete timely without good cause reasons

If the caretaker fails to provide appropriate care for the child, the caseworker must evaluate the living arrangement. The purpose of the evaluation is to help determine if there are additional services needed by the caretaker to ensure compliance in the future. The goal is to keep the child in a safe and stable environment.

BENEFIT DIVERSION

Benefit Diversion is a cash payment alternative to traditional Work First cash assistance. Work First offers some families Benefit Diversion in lieu of Work First cash assistance. It is an optional service that counties may offer; the cadre of services that may be provided include:

• A one-time payment of up to a maximum of three months of Work First cash assistance benefits; • Medicaid for the months in the Benefit Diversion period; and • Referrals to child support, child care assistance, and other community and agency resources.

Benefit Diversion is defined as nonrecurring short-term benefits that must meet the following criteria to be excluded as assistance:

• 1. Designed to deal with a specific crisis or episode of need; • 2. Not intended to meet recurrent or ongoing needs; and • 3. Will not extend beyond 3 months.

Benefit Diversion policy allows for:

• Families that receive Benefit Diversion do not have to repay the benefit amount received. • Benefit Diversion can be received only once in a 12-month period and is not subject to Work First time limits. • Recipients of Benefit Diversion are not required to participate in the Work First employment program. • Eligible families are not considered Work First recipients and are not considered in calculating the State’s participation rate. • Families who have exhausted any Work First time limits are eligible for Benefit Diversion, provided all other eligibility criteria are met.

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22 To be eligible for Benefit Diversion, families must meet the following eligibility requirements that apply to Work First:

1. Who may apply and be included in the family unit; 2. Income guidelines; 3. Resource limit; 4. Minor parent rules; 5. State/county residence; 6. Age rule for children; 7. Rule to have or apply for a Social Security Number; 8. Citizenship/immigrant status; 9. Identity requirements; and 10. Kinship/living with rule.

No other Work First eligibility requirements apply to Benefit Diversion cases.

MEDICAID AND FOOD AND NUTRITION SERVICES

County departments of social services provide information to Work First applicants/recipients information concerning other social service programs like Medicaid and Food and Nutrition Services, Low-Income Heating and Energy Assistance Program, and other public assistance programs.

Work First eligibility criteria may affect a household’s Food and Nutrition Services benefit allotment. Work First applicants/participants are informed they can apply for Medicaid and/or be referred for Medicaid as appropriate.

WORK FIRST BENEFITS PAYMENT POLICIES

All families with a parent included in the assistance payment are subject to the “Work First Benefits” payment process. A caretaker child-only case will receive their assistance payment at the beginning of the month.

Payments to families in Work First Benefits work eligible status are paid after performance. Assistance payments are received only after providing documentation showing they have complied with the requirements of their MRA/Outcome Plan including the Core Requirements and Plan of Action Requirements or show good cause for not complying.

When beneficiaries do not comply with their MRA/Outcome Plan during a month, their Work First cash assistance benefits will not be released for that month and they will not count in the Work Participation Rate. In addition, the month with no Work First Benefits will not count against the participant’s 24-or 60- month time limits. If the parent has good cause for failing to meet their required hours of work activities or for not complying with other MRA/Outcome Plan requirements, their Work First cash assistance benefits will be released. Good cause is defined as:

• A significant family crisis or change; • Illness of the caretaker or child, including participation in substance abuse treatment or medical appointment;

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23 • Civil leave, including jury duty, or a required court appearance.

If a participant fails to meet their required hours of work activities or other MRA requirements, without good cause, the MRA/Outcome Plan serves as notification that their Work First case will be terminated. The child support payment for the following month (if they have one) will be sent directly to the recipient. The family will have to reapply for Work First following termination for failure to meet their required hours of work activities or other MRA requirements.

ELECTRONIC FUNDS TRANSFER (EFT)

All Work First cash assistance payments are issued by electronic funds transfer (EFT). The two methods of issuance are direct deposit to a financial institution or electronic benefit transfer (EBT) card.

Direct deposit allows for the monthly Work First cash assistance payment to be electronically deposited to a personal savings or checking account of the case head. There may be fees associated with direct deposit that are imposed by the financial institution. These fees are the responsibility of the recipient. The financial institution cannot impose charges for an account that it does not impose on its other customers for that same type of account. EBT is an electronic system that allows recipients to access their benefits with a plastic card, similar to a bank card. Work First households will receive the initial EBT card at no cost. If the family receives Food and Nutrition Services (FNS) benefits, the Work First payment may be issued on the same card. The first cash withdrawal transaction at an Automated Teller Machine (ATM) is free. There is a $0.85 fee for each additional cash withdrawal. There are not any fees for point-of-sale (POS) transactions. Work First households that request a replacement EBT card shall be assessed a $2.50 fee. The fee shall be deducted from the account of the Work First household. The fee shall be refunded if the EBT card:

a) was lost in the mail or damaged by the vendor prior to receipt by the Work First household, b) is being replaced due to a name change on card, c) was lost due to a natural disaster such as a fire, flood, tornado or hurricane d) was damaged by a retailer or vendor. Fees associated with the use of the EBT card will be deducted from the balance of the card based on the available benefits in the account. If the recipient is receiving FNS benefits and Work First, the $2.50 card replacement fee will be deducted from the FNS allotment first. If there are not sufficient funds in the FNS EBT account or the recipient does not receive FNS, the replacement card fee will be deducted from the program account with funds available to cover the fee. If there are not sufficient funds in any single account, the EBT system will issue the card and deduct the funds at the next benefit issuance. Federal law prohibits Work First recipients from using EBT cards “in any liquor store, any casino or gambling establishment, or retail establishment which provides adult-oriented

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24 entertainment in which performers disrobe or perform in an unclothed state for establishment.” Recipients’ Work First cash assistance payments may be terminated if used at restricted locations. ELECTRONIC BENEFIT TRANSFER (EBT) MONITORING

The Division implemented compliance measures to monitor usage and impose penalties when it is determined there is EBT misuse.

Monitoring includes reviewing selected cases to ensure that purchases/transactions were not made at any restricted locations: casinos, gambling casinos or gaming establishments, or any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment.

The Division submits an annual EBT Monitoring Report to the Administration for Children and Families (ACF) providing data captured from EBT monitoring.

SANCTIONS

Work First participants may be sanctioned for non-compliance with program requirements. There are four types of sanctions that are imposed when participants fail to comply with program requirements:

1. Non-cooperation with Child Support Services

When a parent or other adult caretaker fails, without good cause, to cooperate with Child Support Services, the entire family will be ineligible for a Work First cash assistance payment for one month or until compliance, whichever is later.

2. Substance Use Treatment

An applicant/recipient that fails to comply with substance use treatment recommendations is ineligible for Work First cash assistance. If the applicant/recipient is Work Eligible, they will continue to be Work Eligible and subject to Work First time clocks. The remaining household members can receive Work First cash assistance if otherwise eligible. The ineligible applicant/recipient’s income and resources are included when calculating the amount of the Work First cash assistance payment. However, the eligible household member’s cash payment amount will be recalculated, excluding the ineligible member from the payment amount.

The ineligible applicant/recipient remains ineligible for Work First cash assistance until he/she complies with treatment.

3. MRA/Outcome Plan Non-compliance

Failure to comply, without good cause, with the terms and conditions of the MRA/Outcome Plan will result in the entire family being ineligible for a Work First cash assistance payment for one month or until compliance, whichever is longer. The family remains eligible for Work First Services.

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4. Intentional Program Violation (IPV)

Individuals found to have committed an intentional program violation are disqualified from Work First cash assistance for 12 months for the first offense, 24 months for the second offense, and permanently for the third. The individual continues to be included in the family and continues to be considered a Work First recipient for purposes of the work requirement and time limits. The family’s payment is recalculated with the individual excluded from the needs.

Families in sanction status will be apprised of available community resources, including assistance through the county department of social services.

All agency staff are trained in indicators of child abuse and neglect and are expected to make reports as appropriate.

A family may avoid an MRA/Outcome Plan sanction if good cause for non-compliance exists. Good cause is defined as:

• A significant family crisis or change; • Illness of the caretaker or child, including participation in substance abuse treatment or medical appointment, • Civil leave, including jury duty, or a required court appearance.

PERSONAL RESPONSIBILITIES AND WORK REQUIREMENTS

The Work First program is based on the premise that all parents have a responsibility to support themselves and their children. Under Work First, the Core Mutual Responsibility Agreement (MRA)/Outcome Plan outlines in detail the obligations of parents, relative caretakers, or legal guardians in return for family assistance. All counties require families to sign the Core Mutual Responsibility Agreement.

For this section, there is a distinction between the requirements for families that include a “work eligible individual” and those families that do not. Drug felons, fleeing felons, and Supplemental Security Income (SSI) representative/protective payees are not excluded from the definition of work eligible individuals. The following individuals are exempt from the work requirement:

1. Adults receiving Work First cash assistance for a child only. (The adult is not included in the case.) 2. A non-recipient relative, other than a parent, living with a child receiving assistance. 3. A non-qualified immigrant who is ineligible for Work First cash assistance or Work First Benefits due to immigration status. (Immigration status requires third party verification.) 4. A recipient of Supplemental Security Income (SSI.) 5. Single custodial parents with a child under 12 months of age. 6. Individuals with “child” family status (youth up to age 18 and not an emancipated minor payee or age 18, if in high school and expected to graduate from high school by the month of their 19th birthday). Emancipation occurs when a

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26 dependent child marries, becomes a member of the U. S. Armed Forces, or is declared emancipated by a court. An emancipated minor parent is treated as an adult applicant to qualify for and receive Work First cash assistance for themselves and their child. 7. A parent providing care for a disabled family member living in the home. Medical documentation to support the need for the parent to remain in the home is required from the Health Care Professional responsible for the medical care of the disabled family member.

MUTUAL RESPONSIBILITY AGREEMENT (MRA)/ OUTCOME PLAN

The first part of the MRA/Core Requirements applies to all families and describes the parent’s or caretaker’s responsibilities. A family is not eligible for WFFA Work First cash assistance unless the parent(s) or caretaker(s) signs the Core MRA. All Agreements must include provisions that the person:

• Contact their Work First worker if a change occurs in their situation within ten (10) days of knowing of the change; • Keep all scheduled appointments with their Work First worker; • Cooperate with Child Support Services for all children who receive assistance; • Ensure that children who receive assistance get their immunizations and have regular checkups; and • Ensure that school-aged children and minor parents who receive assistance live at home and attend school according to school attendance policy. • Will not access the cash assistance on EBT card or use cash assistance in any liquor store, gambling or gaming establishment or any establishment that provides adult oriented entertainment. • Acknowledge if they do not meet the requirements listed on the Core MRA Requirements, their Work First payment will stop.

A notice of appeal rights is sent to participants who fail to comply with the MRA requirements.

The second part of the MRA, The Plan of Action /Outcome Plan, is the Work Eligible parent’s plan to meet the work requirements. This part:

1. Establishes employment goals for the parent(s); 2. Describes a plan for participating in work or work-related activities and the hours required in each activity; and 3. Describes the case management and supportive services that will be provided to help the family successfully meet the requirements of the MRA and move towards self-sufficiency. Supportive services may include reasonable accommodations for individuals with disabilities and language assistance for LEP populations.

All MRA Plan of Actions/Outcome Plans must include provisions that the person:

• Contact their Work First worker immediately if a change occurs that prevents them from completing the activities described on the MRA Plan of Action /Outcome Plan;

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27 • Accept and keep any reasonable job offered. The participant will not quit a job, refuse an offer of employment or fail to follow up on job referrals without good cause; • Submit verification of all activities completed each month by the fifth (5th) work day of the following month; and • Acknowledge that failure to meet the requirements listed on the MRA Plan of Action/Outcome Plan will result in termination of benefits.

A family whose parent refuses to sign the MRA Plan of Action/Outcome Plan without good cause, is ineligible for Work First cash assistance. The WF payment is not issued for the month of non-compliance, the case terminates, and the family may re-apply at any time but may not be approved until the month following the missed payment.

EMPLOYMENT ASSISTANCE FOR WORK ELIGIBLE INDIVIDUALS

The NC Department of Commerce, Division of Workforce Solutions (DWS) is the presumptive, primary deliverer of job placement services for the Work First program and a critical partner with the Department of Health and Human Services. DWS operates over 80 local agencies across the state called NCWorks Career Centers.

Registration for work with the NCWorks Career Center is a prerequisite to participation in the Job Search component of Work First. All work eligible participants who are assessed as ready to engage in job search will be required to register for work with NCWorks Career Center. This requirement will be included on their MRA Plan of Action/Outcome Plan. Failure to register for work with the NCWorks Career Center will result in termination of Work First benefits.

Counties also may contract with the local NCWorks Career Centers for additional services such as job search, job placement, and referrals to community services. Modifications and/or accommodations may be necessary to assist individuals with registration and access to employment services.

WORK RESPONSIBILITIES

Work Eligible individuals are assessed for employability at application for Work First cash assistance and again within three months of receiving assistance. Single parents of children less than 12 months of age are excluded from the participation rate calculation; if they do not complete enough countable hours to be deemed engaged in work. This exclusion is for a cumulative total period of 12 months (lifetime exemption). In all counties, single parents with children under age six who demonstrate that necessary child care is not available are not sanctioned. (See Child Care Section for required definitions.)

MRA Plans of Action/Outcome Plans are individualized based on an employability assessment. The MRA Plan of Action/Outcome Plan must be completed within 5 days of the Work First application date. Often, a Plan of Action will reflect fewer hours per week of activities than required to meet the Work Participation Rate. This may be due to a shortage of appropriate activities, a shortage of necessary support services, or other personal limitations of the participant. County Work First staff are responsible for balancing these limitations against the expectation of full-time participation and the

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28 requirement to meet the participation rates. All work eligible individuals are expected to strive and make progress toward full time participation. County Work First plans require frequent review because some plans may be short-term. The MRA Plan of Action/Outcome Plan may be updated or re-negotiated as often as appropriate.

The Administration for Children and Families (ACF) was instructed by the Deficit Reduction Act of 2005 to provide states with specific definitions of federally countable work activities. In February 2008, the Final Rules were issued with the following work activities:

1. Unsubsidized employment 2. Subsidized employment 3. Job Search 4. Job Readiness 5. On-the-Job Training 6. Work Experience 7. Community Service 8. Vocational Educational Training 9. GED/HS Completion for Teen Heads of Households 10. Job Skills Training 11. Education Directly Related to Employment 12. Satisfactory attendance at secondary school or in a course of study leading to a GED

Optional items and information specific to North Carolina are discussed below.

1. Custom Work Activities - Additional work activities that do not meet the federal definitions are also supported. A worker and the family will use the results of the employability assessment to create the most likely and timely path to self- sufficiency.

2. Post-Secondary Education - Up to 20% of Work First recipients may be enrolled, at least part-time, in a post-secondary education program. In Standard Counties, recipients who are enrolled at least part time and who maintain a 2.5 grade point average (or its equivalent) shall have their two-year time limit suspended for up to three years.

WORK VERIFICATION REQUIREMENTS

In compliance with the Deficit Reduction Act of 2005 and the subsequent Final Rule, the state of North Carolina’s Work Verification Plan was submitted and approved by ACF in September 2008 which includes the following:

1. Describes the services or programs the state includes under each work activity. (Services and programs must conform to the Federal definition of these activities.) 2. Describes how the State determines the number of countable hours of participation for each activity.

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29 3. Describes how the state verifies the actual hours of participation for each activity, including the procedures for obtaining and maintaining documentation of hours of participation. 4. Describes the methods of daily supervision for each unpaid work activity.

All county departments of social services/agencies must adhere to the requirements as outlined in the State’s Work Verification Plan.

CHILD CARE DEFINITIONS

County departments of social services/agencies use the following guidelines to evaluate whether adequate child care is available for single parents with a child under age 6. At each occurrence of non-compliance with the work requirement for a single parent caring for a child under age 6, the county department of social services/agencies will document in the case record the reason for the parent’s non-compliance. If the parent states that he/she is unable to participate because needed child care is not available, the county department of social services/agencies will evaluate each of the following criteria and document their findings in the case record. If the county finds that the parent’s claim is valid, the sanction or loss of Work First benefits for non-compliance is not applied.

Appropriate Child Care

• Care in a regulated child care center or family child care home that has a license, or • Care in a license exempt child care arrangement that meets the requirements of North Carolina’s Subsidized Child Care Program. • Child care options must have hours of operation which coincide with the work schedules of parents and meet any special needs of the individual children.

Reasonable Distance

• In evaluating “reasonable distance,” counties consider the total time it takes for parents to travel one-way from home to the child care provider, then to work or work-related activity. Because of the differences in North Carolina’s geography and highway/road systems, county departments of social services/agencies have maximum discretion to decide what is “reasonable” for individual families based on their resources (i.e. whether they have a vehicle in working order or families’ resources available for transporting the family) and local transportation considerations. • As a guideline, counties should consider that it might not be reasonable to require families receiving Work First to travel more than 80 minutes one-way to work and child care. Eighty minutes is approximately four times the average one-way commute time in North Carolina (not including stops at child care arrangements), based on data from the U.S. Census Bureau.

This does not preclude an exemption from the sanction or a loss of Work First benefits based on a shorter commute if the county considers the commute an obstacle to children’s healthy development or the family’s self-sufficiency goals.

Unsuitability of License Exempt Child Care

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The unsuitability of a non-licensed child care arrangement is determined on a case-by- case basis. A license exempt child care provider may be considered “unsuitable” for a particular family if one of the following exists:

• The license exempt child care arrangement does not meet the requirements of North Carolina’s Subsidized Child Care Program to receive subsidy payment. • A parent does not want their child(ren) cared for by the non-licensed child care provider.

Affordable Child Care Arrangement

When a child care subsidy is available to the family, the child care is considered affordable. If the child care provider charges parents the difference in the subsidy payment rate and the private paying rate and the parent cannot afford to pay the difference, that care does not meet the definition of affordable.

HEAD START/EARLY EDUCATION

The DHHS/NC Division of Social Services continues to strengthen its’ partnership with the NC Head Start-State Office. The goal of this collaboration is to:

a) increase the number of referrals of families participating in the Work First program to Head Start or Early Head Start programs for enrollment; b) increase the number of referrals that Head Start or Early Head Start programs make to local department of social services agencies of families potentially eligible to receive Work First or other services; c) develop an effective system of communication and information-sharing between Head Start and local department of social services/agencies; and d) provide joint training opportunities for Head Start staff and Work First staff that have similar job functions.

EMERGENCY ASSISTANCE (ALL COUNTIES)

Counties must use their Work First block grant funds to provide emergency assistance to families. Counties must define the eligibility criteria, including who is eligible and the types of emergencies that will be covered. This assistance is designed to assist with families’ sporadic emergency needs, such as a utility cut-off or an eviction notice. Emergency assistance is not designed specifically to help families move to self- sufficiency, although, use of this assistance could help a family’s progress.

Counties will comply with federal requirements. Emergency assistance does not trigger the 24 or 60-month time limit, nor will families receiving emergency assistance be required to participate in the Work First program. In addition, families who have exhausted their 24 or 60-month time limit are eligible for Emergency Assistance, provided all other eligibility criteria are met. These families are not included in calculating the State’s participation rates.

At a minimum, counties must define and describe in their Emergency Assistance plans the following guidelines:

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• The family must have a child who lives with a parent, relative caregiver, or non- relative caregiver as defined in Work First policy, and who meets the age requirements for Work First. • Total income must be at or below 200% of the federal poverty level. • Family members must meet the same citizenship requirements and resource limits as for Work First. • Countable income is the same as for Work First.

APPEALS PROCESS

For Standard Counties, the North Carolina Department of Health and Human Services has set uniform policies for determining eligibility, providing benefits, and ensuring fair and equitable treatment. Applicants or recipients who wish to contest a decision adversely affecting their receipt of Work First cash assistance, or workers contending a breach of the non-displacement in work activity provision of federal law, may appeal in accordance with N.C.G.S. Sec. 108A-79 (N.C.G.S. 108A-79). Families are informed of their right to appeal and are provided with copies of Work First policy upon request. Electing Counties, as required by State law, have established a local appeals process that substantially complies with the appeals process outlined in N.C.G.S. Sec.108A-79 (N.C.G.S. 108A-79). For Electing Counties, all appeals for Work First are heard locally, not by the State Division of Social Services. Applicants and recipients with disabilities and language interpretation/translation needs are provided with reasonable accommodations and services to assist them in participating in the appeals process if requested.

WORK FIRST SERVICES

It is important that families receive the services needed to assist them in moving toward self-sufficiency. All counties have maximum flexibility in deciding how they utilize their block grant funds to provide services to enable families to become and remain self- sufficient. The flexibility available to county departments of social services/agencies make it impossible to outline all the services that may be provided. Families may be provided services that are not specifically prohibited by federal law or regulation. To the extent that Work First services are available, they may be provided to Work First recipients at any time to support the scheduled activities of the MRA/Outcome Plan. In addition, support and family enrichment services may be provided for families whose income does not exceed 200% of the federal poverty level. Work-related services may also be provided to non-custodial parents of Work First recipient children. The Electing County’s Work First Plan describes how they will provide services.

Serving Non-Custodial Parents (Optional in All Counties)

Child support should be a primary income source for most Work First families and a way for former Work First families to remain off Work First. To enhance non-custodial parents’ ability to pay child support, North Carolina allows counties to provide work- related services for non-custodial parents of minor children who are Work First recipients. The non-custodial parent’s family income must be at or below 200% of the federal poverty level. The non-custodial parent is not considered a member of the custodial parent’s or caretaker’s family. In addition to the ability to provide work-related

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32 services, Work First staff are encouraged to work with their local Child Support Services Office and judicial system to have child support orders modified to require the non- custodial parent’s participation in employment activities, including registering for work in NCWorks online (http://www.ncworks.gov ).

Serving Low Income Families

All counties are to provide in their county plan a variety of services for families with income at or below 200% of the federal poverty level that have a child who meets the same requirements as Work First cash assistance or Work First services.

Counties describe in their county plans how they will provide such services and what types of services they will provide. Services may be varied, including but not limited to, transportation, child care, job retention bonuses, case management, follow-up services, mentoring programs, after-school learning programs, parenting programs, literacy programs, and post-employment skills training. Families who have exhausted their 24 or 60-month time limit are eligible for these services, provided all other eligibility criteria are met.

Child Care Services

Counties may provide subsidized child care services by their Work First Block Grant funds. To qualify, families must be eligible for Work First cash assistance or for Work First Services as described in this plan. The child care services provided must comply with subsidized child care policies administered by the Division of Child Development and Early Education (DCDEE). All parents receiving child care subsidies have access to provider ratings and referral information to assist them with evaluating their child care arrangement.

All parents who have countable income are required to pay a rate of 10% of their monthly income for the cost of child care in accordance with the fee schedules administered by DCDEE.

Transportation Services

Counties are encouraged to develop local partnerships with other human services agencies, transit systems, businesses, workforce development agencies, faith-based community, civic organizations, etc., to develop and expand alternative transportation resources to meet the community’s transportation needs. Issues such as communication, coordination, mutual trust and respect, policies, marketing, funding resources and cost sharing are all part of the discussion process.

Some counties have developed car ownership programs through partnerships with other organizations. Vehicles donated from private citizens, businesses, and/or local governments are given to select Work First families. There are many variations of car ownership programs operating in North Carolina. Most programs require that the Work First recipient pay at least a portion of the costs associated with liability insurance, repairs, taxes, and license and/or title fees. Some counties use Work First Block Grant Funds to purchase vehicles, make down payments, and assist with regular car payments or car repairs for Work First families.

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33 ELDERCARE TRAINING

North Carolina is committed to strengthening support for an increasingly diverse aging population, along with their families and natural support systems. Workforce development and training, community education and engagement strategies will ensure such opportunities exist.

North Carolina ranks ninth nationwide in population of adults age 60 and older, and by 2025 one in five NC residents will be older than 65. Given the steady increase in the number of older adults in North Carolina, the Work First program will continue to provide assistance to work eligible individuals to train for, seek and maintain employment in the eldercare workforce. Work First Employment Services job skills training, work experience and employment retention services include training and employment for certified nursing assistants (CNAs), home health aides, and other occupations related to eldercare. In addition, case management services provide employment retention services for positions that include CNAs, home health aides and other occupations related to eldercare. Assistance may include tuition, payment of course fees, books, instructional materials, special equipment (i.e., lab coats, stethoscopes, etc.) and supportive services such as child care and transportation services.

Consistent with North Carolina’s 2019-2023 State Plan on Aging, the Division of Social Services will collaborate with the Division on Aging and Adult Services (DAAS) on eldercare issues and training needs. Local agencies are required to remain informed of local economic trends and provide employment services, including job skills training and job development, based on these trends.

HOMELESSNESS

Counties may use TANF and county funds to serve homeless families and families at risk of experiencing homelessness. These families must be TANF eligible or TANF recipients. The services provided may include but are not limited to: payments to cover basic needs, supportive services, and employment services. Counties may partner with local resources to coordinate and streamline services to prevent homelessness and promote self-sufficiency.

To better connect people with resources such as housing, and other basic needs, the Department recently launched NCCARE360, which is the first statewide coordinated care network to electronically connect those with identified needs to community resources and allow for a feedback loop on the outcome of that connection. The Department recognized that people face a fragmented system of health and human services that can be hard to navigate. Providers often operate in siloes, are disconnected and have no meaningful way of coordinating services for local residents. NCCARE360 is collaborative solution to this problem by providing a coordinated, community-oriented, person-centered approach to delivering care in North Carolina through a robust statewide resource directory that will include a call center with dedicated navigators, a data team verifying resources and text and chat capabilities. Other features include:

• A shared technology platform that enables health care and human service providers to send and receive secure electronic referrals, seamlessly communicate in real-time, securely share client information and track outcomes.

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34 • A community engagement team working with community-based organizations, social service agencies, health systems, independent providers and more to create a statewide coordinated care network.

During its first quarter implementation (January -March 2019) NCCARE360 has demonstrated its ability to quickly connect people with resources, even across county lines, and is rolling out across the state to all 100 counties in the upcoming months. NCCARE360 will be an important tool to ensure that all North Carolinians – including TANF recipients – benefit from this innovate referral service to quickly connect people with meeting housing and other basic needs.

VOTER REGISTRATION

The purpose of the National Voter Registration Act (NVRA) is to make more opportunities available for people to vote. The NVRA requires individuals, who are U.S. citizens and at least 16 years of age, be offered the opportunity to register to vote or update a voter registration record at application, recertification or when reporting a change to their address.

The local county departments of social services/agencies must ensure voter registration forms are available to individuals during their visits. The voter registration questions are in the Work First Application Workbook (DSS-8228), Intelligent Evidence Gathering (IEG) and the one-page application in North Carolina’s Families Accessing Services through Technology (NC FAST).

These individuals must be given a voter registration application form during their visit or mailed a form if the contact was by telephone or email. If the individual asks for assistance in completing the voter registration form, the caseworker or another designated agency staff must help. Staff are required to provide the same level of assistance in completion of voter registration forms as offered in the completion of other agency/program forms. The agency must coordinate with their local Board of Elections office to ensure the agency maintains sufficient North Carolina voter registration materials to comply with the NVRA.

Agency staff do not determine eligibility of any individual’s right to register to vote. The county Board of Elections office makes that determination. Inform the individual that the Board of Elections processes voters registration applications. Applicant and recipient questions concerning voter registration must be directed to the local Board of Elections office.

Each applicant or recipient must be informed that registering to vote or declining to register to vote will not affect their eligibility for services or benefits. No information relating to a declination to register vote may be used for purposes other than voter registration.

All completed voter registration applications must be submitted to the NC State Board of Elections no later than five business days after accepting the voter registration application. There must be interagency coordination to ensure the appropriate information is submitted to the NC State Board of Elections. This information includes the number of voter registration forms submitted and the number of remote transactions,

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35 the method of communication (telephone, email or U.S. mail) and the transit method (U.S. mail or email). WORKFORCE INNOVATION AND OPPORTUNITY ACT (WIOA) North Carolina’s TANF/Work First program is a required and active partner with WIOA. Collaborative meetings are held quarterly to develop and implement best practices. • State and County TANF/Work First representatives participate in the planning of the Workforce Innovation and Opportunity Act (WIOA) “unified plan” to identify career pathways for TANF/Work First participants. Career pathways includes a combination of education, training, credentials and career counseling that align with skill needs of state/ local industries. • Support services needed by TANF/Work First participants to participate in career pathways through WIOA and/or the NC Community College System are included.

• TANF/Work First participants are considered a “priority of service” for WIOA. State and County TANF/Work First representatives work collaboratively with WIOA and NCWorks Career Centers to develop and implement “priority of services” policies, referral procedures and disposition tracking. • County TANF/Work First programs partner with local NCWorks Career Centers to provide TANF/Work First participants with an array of services and labor market information offered through one-stop career services centers. State and county TANF/Work First representatives assist WIOA, Vocational Rehabilitation Services and NCWorks Career Centers in planning work-based training strategies for TANF/Work First participants with barriers to employment (including on the job training, subsidized employment and work experience programs). • State and county TANF/Work First representatives partner with state and local workforce development boards to engage employers and stakeholders to develop workforce strategies to ensure that TANF/Work First participants have access to emerging job opportunities with local businesses and industries. • Increase cross-program (TANF/Work First & WIOA) knowledge and training among staff members. • Coordination of services of TANF/Work First with Workforce Development partners through a formalized appraisal/referral process. • Coordinate co-location of Work First staff in the NCWorks Career Centers to more directly connect Work First recipients to employment activities. WIOA includes six core programs: Adult, Dislocated Worker, and Youth Formula Grants under Title I; Adult Education State Grants under Title II; Wagner-Peyser Employment Services under Title III; and Vocational Rehabilitation State Grants under Title IV.

Priority of Service Requirements

WIOA includes enhanced “priority of service” requirements to ensure recipients of public assistance and other hard-to-serve populations may access critical employment and training services through the NCWorks system. TANF programs should work with workforce development boards and NCWorks Career Centers’ staff to develop and

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36 implement new priority of service policies; ensure that TANF recipients are prioritized under such policies; and are offered services to meet their needs.

Work-Based Training

WIOA strengthens the workforce system’s focus on work-based learning strategies for adults and youth with barriers to employment, with on-the-job training, subsidized employment, and work experience. Some TANF agencies have recent experience with such programs for disadvantaged workers and can assist WIOA agencies in implementing them. State and local planning efforts should identify areas where WIOA and TANF resources can be aligned to support and expand these efforts.

Employer Engagement

Local workforce boards must engage employers to ensure that workforce investment activities meet the needs of businesses. Importantly, WIOA emphasizes the creation and use of industry or sector partnerships, which bring together stakeholders connected to local industries to develop short and long-term workforce strategies in those industries. TANF programs should be included in local sector partnerships to engage employers and ensure that TANF participants can access emerging job opportunities. TANF programs connect to the NCWorks Business Services Representatives (BSR) to coordinate contact and activities with businesses to streamline services.

SUBSTANCE USE AND MENTAL HEALTH INITIATIVE

In response to growing demands for additional resources to meet the needs of individuals affected by substance use and mental health diagnoses, North Carolina has implemented a Behavioral Health Strategic Plan (BHSP), and an Opioid Action Plan. The BHSP2 identifies two focus areas for strengthening the behavioral health system:

• Ensuring timely access to high-quality services, and • Integrating behavioral health, I/DD, and physical health for children and adults.

The Opioid Action Plan focuses on three key areas to reduce the impact of the opioid epidemic:

Prevention • Cutting supply of inappropriate prescriptions and illicit opioids • Supporting youth through targeted programs to reduce youth misuse of the drugs • Improving maternal and prenatal care for women battling substance abuse

Reducing Harm

2 More information about NC’s Behavioral Health Strategic Plan can be found here: https://files.nc.gov/ncdhhs/documents/files/SL%202016- 94%2C%20Sect.%2012F.10%20and%20SL%202017- 57%20Sect.%2011F.6%20Strategic%20Plan%20for%20Improvement%20of%20Behavioral%20Health%20S ervices%20.pdf?4SjY_N4YP3KadXXEuEOhGa0xQzXdBJwd

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37 • Training systems and pharmacists to connect people to harm reduction services • Making the naloxone kits more widely available to the most burdened • Communities

Connecting to Care • Expanding access to treatment and recovery support • Addressing the needs of justice-involved populations

Since launching the plan in 2017, opioid dispensing has decreased by 24%; buprenorphine (a drug used to treat opioid addiction) has increased by 15 %; and uninsured and Medicaid beneficiaries who have received opioid use disorder treatment has increased by 20%. Strategies were revised in 2019 to address non- medical drivers of health, eliminate stigma associated with opioid use and treatment, and further increase access to treatment and recovery supports. North Carolina continues its commitment to ongoing efforts to reduce access to opioids and increase services available to treat this disease3.

North Carolina law (N.C.G.S. Sec. 108A-29.1) requires, if there is reasonable suspicion, substance use screening and drug testing (urine toxicology) for the illegal use of controlled substances for each Work First program adult applicant or recipient is a condition of eligibility to receive assistance. Adult applicants or recipients will complete a verbal substance use questionnaire designed to determine if an adult applicant or recipient is at risk for alcohol and/or substance use disorders. When the results indicate illicit substance use, this meets criteria of ‘reasonable suspicion’ and a drug test is required within a period of time as specified by the Department.

In order to establish eligibility to apply for Work First all applicants must have a background check completed by Work First to determine if there is a criminal conviction relating to an illegal controlled substance within the past three years. If there is, this is the second criteria that meets ‘reasonable suspicion’ and requires a toxicology test. The results of drug tests will remain confidential and will not be released to law enforcement. If an adult refuses to be screened initially for substance use, the adult is ineligible for Work First Cash Assistance. If otherwise eligible, the remaining household members can receive cash assistance.

When an applicant or recipient is determined to be at risk for an alcohol use disorder, they are referred to a Qualified Professional in Substance Abuse (QPSA) for a substance use disorder assessment and referred to substance used disorder treatment if indicated. Additionally, individuals who are engaged in or have completed substance use disorder treatment, are referred to the QPSA to have participation or completion confirmed, in part to support establishing eligibility for application or continued receipt of Work First program benefits. Individuals who are required to get drug testing to establish eligibility for Work First also have the opportunity to meet with a QPSA to gain information on substance use and substance use disorder treatment. A voluntary mental health screening is offered to all adult Work First applicants and recipients as part of the

3 More information about the NC Opioid Action Plan can be found here: https://www.ncdhhs.gov/about/department-initiatives/opioid-epidemic/north-carolinas-opioid-action- plan

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38 interview process. If the screening indicates the adult is at risk for mental health issues, the applicant/recipient may be referred to a Qualified Professional in Substance Abuse (QPSA) for further assessment.

If appropriate, a substance use or mental health referral is made through the Local Management Entity-Managed Care Organization (LME-MCO) to identify a provider for treatment, and then a treatment plan is developed. The QPSA serves as the care coordinator to track the adult’s engagement in treatment. The QPSA and the Work First caseworker jointly develop a plan for the family to ensure success. If the adult fails to comply with the treatment plan without good cause; the adult is ineligible for Work First. The QPSA will assist the Work First worker in determining good cause. The family’s payment is recalculated with the adult excluded from the needs unit, and the payment is made to a protective payee.

Participants in treatment programs are expected to combine treatment with other appropriate work activities. The Opioid Action Plan increases the number of community- based recovery resources which include support groups, recovery centers and peer recovery coaches. The plan also reduces barriers to employment for those with criminal histories related to drug offenses via the use of therapeutic (mental health, recovery and veteran) courts. One strategy includes expanding employment support services for people with substance use disorders and increasing workplace policies and employment assistance programs that support people with substance use disorders. To reduce barriers to employment for those with criminal histories, another strategy includes supporting counties in adopting pre-arrest diversion programs and divert low-level offenders to community-based programs and services. For those with criminal histories, information will be provided on education options, career paths, and licensures that are available to people with different classes of convictions.

The Work First Program will seek new opportunities to align with efforts increasing access to behavioral health and substance use disorder treatment and resources. The Work First program will continue to collaborate with community, state, and federal partners in developing and providing trainings for county TANF/Work First staff to readily assist families with substance use resources and information.

FRAUD AND ABUSE

The Department of Health and Human Services enforces standards and procedures to detect and prevent fraud and abuse by recipients and employees of the program. An administrative hearing process enables county departments of social services/agencies to identify cases of intentional program violations. All Standard Counties follow the hearing policy stated in Work First Policy. Electing County’s Hearing policies are outlined in their county plan if different than policy in the Work First Manual. Individuals found to have committed an intentional program violation are disqualified from Work First for 12 months for the first offense, 24 months for the second offense, and permanently for the third offense. The offender is not included when determining the benefit amount for the family, but the offender continues to be subject to time limits and work requirements. The overpayment is recovered by repayment or payment reduction.

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39 OUT-OF-WEDLOCK BIRTHS

Because out-of-wedlock births are so closely linked to poverty, reducing these births should improve the health of women and children and help reduce dependency on public assistance.

Circumstances contributing to out-of-wedlock births are complex. Strategies to reduce them must address a range of issues from access to family planning services to promoting abstinence and responsible behavior.

County health and social services departments/agencies continue to collaborate to ensure that all recipients receive needed family planning services. Each county health and social services department/agency have formulated a plan to reduce barriers and promote family planning service utilization. An indicator to determine the percentage of out-of-wedlock births has been added to the Maternal and Child Health Accountability System to monitor health departments as they strive to meet this goal. This indicator is tracked on a county-by-county basis and is used in the evaluation of each health department’s effectiveness, resulting in health departments adopting strategies to improve their county performance measures.

The Department gives high priority to its adolescent parenting and adolescent pregnancy prevention programs and continues to monitor prevention efforts, particularly those aimed at reducing teen pregnancy.

Teen Pregnancy Prevention Initiatives (TPPI), housed in the Division of Public Health, provide funding for local health departments, social services departments/agencies, school systems, and other community-based agencies to work with adolescents to prevent pregnancy among target populations. These agencies use “best practice models” in group settings. Techniques may include abstinence and life-skills education, youth development, parent workshops, counseling and referral, community awareness efforts, and male involvement. Topics include decision-making, leadership, information about specific areas of concern such as sexual coercion, statutory rape laws, and/or service learning.

STATUTORY RAPE

The Department recognizes the importance of education as a tool for the prevention of sexual violence, including statutory rape. To reach adults, correctional facilities have curricula that focus on modifying and maintaining permanent changes related to illegal sexual behavior. The North Carolina Justice Academy (which trains criminal justice professionals throughout the State) provides training courses which include the Sexual Victimization of Children. This is in conjunction to the cooperative education and training efforts of local law enforcement and domestic violence agencies.

The Department encourages the utilization of law enforcement, domestic violence, and other community-based agencies to educate teen fathers, non-custodial fathers, and young males. These institutional and community-based programs are ongoing and adhere to acknowledged philosophies and practices. The Teen Pregnancy Prevention Initiatives, housed in the North Carolina Division of Public Health (NCDPH) offer training to fund parenting programs regarding fatherhood involvement and legal issues, including

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40 child support. The Department continually works to identify opportunities for appropriate program expansion while reviewing the efforts of other states.

FORMATION AND MAINTENANCE OF TWO-PARENT FAMILIES

Researchers have found many benefits for men, women, children and their communities when adults are in healthy marriages. Some individuals are less likely to remain or end up in poverty and children and youth are less likely to become pregnant as a teenager when raised by parents in healthy marriages. The mission of the Healthy Marriages Initiative is to help couples that have chosen marriage for themselves, gain greater access to marriage education services, on a voluntary basis, where they can acquire the skills and knowledge necessary to form and sustain a healthy marriage. Local community-based family resource centers provide a comprehensive array of family support programs, services and activities to encourage the formation and maintenance of two-parent families.

NATIVE AMERICAN TRIBAL PLAN According to the 2000 U.S. Census North Carolina has the largest Native American population east of the Mississippi River and the eighth-largest Native American population in the United States. This total is for people identifying themselves as Native American alone. The State of North Carolina recognizes eight tribes: • Eastern Band of Cherokee (tribal reservation in the Mountains) • Coharie (Sampson and Harnett counties) • Lumbee (Robeson and surrounding counties) • Haliwa-Saponi (Halifax and Warren counties) • Sappony (Person County) • Meherrin (Hertford and surrounding counties) • Occaneechi Band of Saponi Nation (Alamance and surrounding counties) • Waccamaw-Siouan (Columbus and Bladen counties) The Eastern Band of Cherokee Indians is the only North Carolina tribe recognized by the federal government. The Eastern Band of Cherokee Indians (EBCI) is approved to operate a Tribal TANF plan by the United States Department of Health and Human Services, Administration for Children and Families. The EBCI TANF Tribal plan provides for the intake, eligibility determination, cash assistance, employment services, and case management for tribal families. The EBCI continues to operate a pre-existing Native Employment Worker (NEW) program. The State will provide each member of an Indian tribe, who is domiciled in the State and is not eligible for assistance under a tribal family assistance plan, with equitable access to assistance under the state program funded under Title IV-A of the Social Security Act. North Carolina does not include these individuals in the state’s federal work participation rate. INDIVIDUAL DEVELOPMENT ACCOUNTS (IDA)

Counties may establish Individual Development Accounts (IDA) projects locally based on the counties’ resources available. Counties’ IDA projects must comply with federal and state regulations and with Section 404(h) of the Social Security Act.

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41 CONFIDENTIALITY

The Division complies with State and federal laws/regulations as it pertains to confidential information. North Carolina General Statute Sec. 108A-80 states that it is unlawful for information to be released from a family’s records, except for the purposes directly connected with the administration of programs of public assistance and social services. The law requires the Division to establish and enforce policies governing restrictions on the use and disclosure of any information concerning applicants and recipients of public assistance and comply with applicable provisions of the Social Security Act concerning confidentiality.

FAMILY VIOLENCE OPTION

North Carolina has adopted the Family Violence Option. The state has developed standards and procedures to notify all Work First applicants and recipients about domestic violence to identify applicants and recipients with a history of being a victim of domestic violence. These individuals are referred to counseling and supportive services (while maintaining their confidentiality) and may receive a temporary waiver from one or more Work First requirements if domestic violence is preventing them from meeting these requirements.

The Department has adopted the option to waive Work First requirements such as time limits, participation in work activities, child support cooperation, and family cap provisions in cases where there is good cause to show that compliance would make it more difficult for the recipient to escape domestic violence. These waivers also apply to situations that would unfairly penalize someone who is, or has been, a victim of domestic violence. The length of waivers is determined on a case-by-case basis, but may not exceed six months at a time, and may be reevaluated as appropriate.

A substantial body of research has established that having an unmet resource need — including experiencing food insecurity, housing instability, unmet transportation needs and interpersonal violence or toxic stress — can significantly and negatively impact health and well-being. It can also increase healthcare utilization and costs. With this in mind, North Carolina is launching the Healthy Opportunities pilots as part of its Medicaid Transformation efforts. The pilots are an opportunity for payers, providers and community-based organizations to have the tools, infrastructure and financing to integrate non-medical services directly related to improved health outcomes into the delivery of care. During the 2019-2022 TANF plan, we will strategically align with increased resources and opportunities to address interpersonal and family violence identified within the Health Opportunities pilots.

LOCAL DEMONSTRATIONS OR PILOT PROGRAMS

Counties may request approval from the Division of Social Services to design and operate demonstrations or pilot programs to investigate various ways of meeting the Work First program purposes and goals. These demonstrations will likely be in areas where the county lacks the authority to make specific program changes. Funding, in addition to the county’s local block grant, may or may not be provided. There may be instances in which the State asks for proposals to address a specific topic. In other

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42 situations, counties may apply to the State to operate a pilot without an official request from the State.

TANF ELIGIBLE FAMILIES

To achieve the goals of Work First, North Carolina opts to take advantage of the flexibility allowed in the federal law and regulations. The Division defines several categories of eligible families. Eligible families include the following:

• Families that meet the income and resource requirements will be provided Work First cash assistance or Benefit Diversion; if Benefit Diversion is offered by the county. • Unwed parents, teenage parents or other high-risk populations in need of services to prevent or delay pregnancies without regard to family income. • Pregnant women with Work First eligible children in the household whose income is at or below 200% of the federal poverty level may receive support services. • Non-custodial parents of Work First children where the non-custodial parent’s family income does not exceed 200% of the federal poverty level may receive work-related services. • Families with incomes that do not exceed 200% of the federal poverty guideline may receive all other services, including, but not limited to: Job retention and advancement services, employment services, support services, and preventive family services including child protective services and related child welfare activities. • Any former Work First recipient without regard to family income may receive limited follow up and referral services.

In addition to serving the families described above, North Carolina provides services covered in North Carolina’s approved State Plan as authorized by Parts A and F of Title IV of the Social Security Act in September 1995. Specifically, the services listed in the plan will be provided to families or children who are experiencing an emergency as defined in the plan and who do not have sufficient resources to alleviate the emergency. Services specifically include all child welfare services (e.g., child) protection, preventive family services, family preservation, and foster care and adoption services including foster care payments. Residential and emergency placement services can also be funded through this provision. Emergency assistance to needy families with children provides the following services under Citation 233.120: A. Emergency Assistance to needy families with children under the age of 21 is provided in accordance with 45 CFR 233.120.

( ) No (Paragraphs B. - D of this Section do not apply.) (x) Yes, as specified below:

Emergency Assistance shall be provided to or on behalf of a needy child under the age of 21, the specified relative of the needy child, and any other member of the household in which he they are is living. The needy child under the age of 21 who is within the specified degree of relationship must be living with the specified relative or have lived with the specified relative within six months prior to the month in which Emergency Assistance is

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43 requested.

B. Families of migrant workers are covered.

( ) No. (x) Yes, on statewide basis. ( ) Yes, but only in the following areas of the State:

C. Other eligibility requirements are in effect.

( ) No. (x) Yes, as specified below.

1. To be eligible for AFDC-Emergency Assistance, the applicant family must be without resources available to pay for what is needed to alleviate the emergency.

2. An individual who is an illegal alien is not eligible for AFDC-Emergency Assistance.

D. The kinds of emergency situations which are covered by this program and the kinds of assistance and services provided to meet the emergency situations are detailed below: A. Kinds of emergencies covered:

1. A crisis resulting from a catastrophic illness 2. Substantial loss of shelter, food, clothing, or household furnishings due to fire, flood, or similar natural or man-made disaster, or a crime of violence 3. Emergency over which there was no control, and which left the family homeless or in immediate danger of eviction or foreclosure 4. A situation in which Emergency Assistance is necessary to avoid destitution of the needy child or to provide shelter for the child 5. Emergency which could lead to destitution and the destitution or need for a living arrangement did not arise because the child or a specified relative refused, without good cause, to accept employment or training for employment 6. Mass emergencies 7. Loss of a relative who has been responsible for support and/or care of one of his family members 8. Abuse, neglect, or dependency of children 9. Situation in which a child is at risk of removal from the home 10. Situation in which return to the home of a child who is currently separated from his family may create an emergency.

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44

B. A heating or cooling-related emergency shall not be covered.

C. Kinds of assistance provided to meet emergency situations:

1. Cash assistance up to a maximum of $300 to alleviate the emergency by meeting basic needs for families whose total net income is at or below 110% of the current poverty level and total countable reserve is at or below $2,200. (Liquid assets must be at or below $300.) Basic needs include:

(a) Temporary shelter, food, and clothing; (b) Transportation; (c) Home repairs such as repair of frozen pipes and plastic covering for windows; (d) Replacement or repair, when appropriate, of necessary appliances, household items, or furniture; (e) Outpatient medical services such as prescriptions, eyeglasses, and doctor visits if the expense is not covered by the Medicaid Program, or the individual needing the care is either not receiving or is ineligible for Medicaid; and (f) In-kind goods such as clothing, blankets, food:

2. In-Home Services including Assessment; Case Management/Service Planning and Coordination; Counseling and Treatment Services; Family Support/Family Preservation: Day Support Services: and Psycho-Educational Services. 3. Out-of-Home Services, including Residential Placement; Care and Treatment in a Family Setting; and Care and Treatment in a Group Setting. 4. Other Services, including Consultation and Education; Other Child Welfare Services; and, Transportation.

The above assistance must be authorized within a single 30-day period; no less than 12 months after the beginning of the family's last EA authorization period and are limited to a maximum duration of 364 days. Child Protective Services and related Child Welfare Services may be provided without regard to family income.

GENDER EQUALITY Same-sex marriage is constitutional in all states. The definition of “spouse,” includes a legally married individual regardless of gender.

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USE OF FUNDS

Federal funds will be used in accordance with federal law and regulations. TANF funds will be used to meet the four purposes of TANF specified in the P.L. 104-193. Federal, state, and county TANF funds will be invested in activities to support achievement of specified outcome measures. These activities include but are not limited to, enhanced training for State and local staff, automation, employer incentives, family planning services, substance use treatment, child care, transportation, and other activities promoting self-sufficiency for families. In addition, federal TANF funds will be used for the services previously included in the AFDC-Emergency Assistance (EA) plan as specified in Appendix F.

Federal TANF funds may be spent as follows and in accordance with federal law and regulations.

• Work First cash assistance and Work First Services. • Child care and early education. • Supportive services, including, but not limited to: work-related expenses and transportation. Educational activities intended to increase self-sufficiency, job training, and work, excluding any expenditure for public education in the state except expenditures that involve the provision of services or assistance to a member of an eligible family that is not generally available to other people. • Administrative costs (which may not exceed 15% of the total funds spent for purposes under Title I of the federal block grant) are defined as costs associated with office directors, policy, fiscal, budget, personnel, purchasing, legal, clerical support, and direct, indirect, and allocated costs in support of these positions. Program supervisors, program clerical staff, and support costs of program staff are services costs rather than administrative costs. Staff time spent solely on determining financial eligibility, including evaluating assets, is counted as administrative. • Case management staff and services, including outreach and follow-up activities. • Expansion of child support efforts, including fatherhood initiatives, and training for eligible non-custodial parents. TANF funds or MOE will be used to fund a concentrated plan to increase the level of child support collections for eligible families. • Cost-sharing requirements under the Job Access program under Section 3037 of the Transportation Equity Act for the 21st Century (P.L. 105-178). • Automation • Other uses that reasonably can be expected to enable families to care for children in their homes; promote job preparation, work, and marriage; that prevent or reduce the incidence of out of wedlock pregnancies; and encourage parents to marry and remain married. • Any purpose for which the state was authorized to use funds received under Parts A and F of Title IV of the Social Security Act as they were in effect on September 30, 1995. North Carolina will continue, as it has since 1995, to provide services (including child welfare services) to at-risk children as was approved in the Title IV-A State Plan as of September 30, 1995. A description of these services is in Appendix F.

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46 If federal TANF funds are insufficient to cover cash assistance costs in the event of economic downturns, other federal, state, and county funds may be used to meet the costs of assisting needy families.

Counties can retain partial collections made on overpayments to recipients not due to agency error, including child care overpayments.

MAINTENANCE OF EFFORT

Under state law, both the counties and the state provide Maintenance of Effort (MOE) funds. County spending is generally through the county Work First Block Grant. This block grant contains an allocation of Federal funds used for those services that meet the requirements for TANF expenditures. It also contains state and county funds that are used to meet the MOE requirements. Additional state funds for Maintenance of Effort are spent on such items as child care, state administrative costs, and automation.

In general, services provided under the first and second purposes of TANF, using TANF funds, and any of the purposes using Maintenance of Effort funds, may only be provided to families that are financially needed (i.e. with incomes at or below 200% of the federal poverty level). Services provided under the third and fourth purposes of TANF, using Maintenance of Efforts funds, may be provided without regard to income if the expenditures are pro-family. All other services provided for the purposes of using MOE funds are subject to incomes at or below 200% of the federal poverty level. Services may be provided to families or children who are experiencing an emergency as defined in the plan, and who do not have sufficient resources to alleviate the emergency.

MOE funds may be used for the activities listed below:

• Work First cash assistance. • Child care. • Supportive and preventive services, including, but not limited to: child and family enrichment services, work-related expenses, and transportation. • Educational activities intended to increase self-sufficiency, job training, and work, excluding any expenditure for public education in the state except expenditures that involve the provision of services or assistance to a member of an eligible family that is not generally available to other people. • Administrative costs (which may not exceed 15% of the total funds spent for purposes under Title I of the federal block grant) are defined as costs associated with office directors, policy, fiscal, budget, personnel, purchasing, legal, clerical support, and direct, indirect, and allocated costs in support of these positions. Program supervisors, program clerical staff, and support costs of program staff are services costs rather than administrative costs. The staff time spent solely on determining financial eligibility, including evaluating assets, is counted as administrative. • Case management staff and services, including outreach and follow-up activities. • Services such as housing assistance or health care assistance that can help families meet their goals for self-sufficiency. • Automating the provisions of the law. • Other uses that reasonably can be expected to enable families to care for children in their homes; that promote job preparation, work, and marriage; that

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47 prevent or reduce the incidence of out of wedlock pregnancies; and that encourage parents to marry and remain married. • Programs for at-risk youth that provide after school programming, mentorship, remediation, alternative education, dropout prevention, and other supportive services. • Early Education and other school readiness programs intended to ensure youth are prepared to enter school.

IMPLEMENTATION

North Carolina will phase in implementation, based on resources, training needed, and automation abilities. Any changes requiring modifications to the existing Client Services Data Warehouse (CSDW), Services Information System (SIS) or North Carolina Families Accessing Services through Technology (NC FAST) that support the Work First program will be delayed until the modifications can be implemented in the systems. Existing policies remain in effect until the required automation changes can be made effective or changes not requiring automation can be put into place.

AMERICANS WITH DISABILITIES ACT REQUIREMENTS (ALL COUNTIES)

In accordance with federal law and U.S. Department of Health and Human Services policy, county departments of social services/agencies are prohibited from discriminating against any person based on race, color, national origin, sex, age, religion, or disability in admission, treatment or participation in its programs, services activities, or in employment. All counties are required to have policies and practices in compliance with American with Disabilities Act (ADA), as well as the provision of interpreter services for its citizens who require such accommodations. Counties are asked to provide a detailed discussion on how the county complies with ADA, as well as how they accommodate requests for interpreter services.

To ensure effective communication and meaningful access to programs and services, individuals with disabilities will be notified of the availability of services at no cost. Such services may include but are not limited to: sign language interpretation and foreign language interpretation services.

Documents notifying applicants and program participants of adverse actions will be communicated in plain language and provided in the applicant’s primary language or will include information on how to have the documents interpreted free of charge.

The Division will track statistical information as it relates to individuals with disabilities.

The Personal Responsibility and Work Opportunity Reconciliation Act requires Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973 (Section 504) apply to TANF programs. The ADA (42 USC Section 12101 et seq.; 28 CFR Part 35) applies to counties and other local governments administering all or part of the TANF program, and Section 504 (29 USC Section 794; 45 CFR Part 84) applies to entities that receive federal funding, either directly or indirectly, through a grant, contract, or subcontract. The two significant elements of Section 504 and Title II of the ADA are:

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48 • Individualized treatment; and • Effective and meaningful opportunity.

Individualized treatment means that individuals with disabilities should be treated on a case-by-case basis and not on stereotypes and generalizations. Further, individuals with disabilities must be afforded the opportunity to benefit from Work First in the same manner as those individuals who do not have disabilities. Exempting individuals with disabilities from work requirements denies these individuals access to services and may result in discrimination.

Section 504 and ADA requires that agencies:

• Ensure equal access to employment programs for qualified individuals with disabilities through the provision of appropriate services; • Adopt methods of administration, which do not discriminate against and ensures equal access and opportunity to qualified individuals with disabilities; and • Modify policies, practices, and procedures to provide equal access which allows qualified individuals with disabilities to participate in and benefit from employment programs; unless doing so would fundamentally change the program or cause an undue hardship.

Qualified individuals with disabilities must be provided reasonable accommodations so, they have an opportunity to participate in and benefit from services and programs that are as effective and meaningful as those available to individuals without disabilities. A reasonable accommodation is any reasonable change in the way the Work First program administers the program, or the way it requires individuals or families to participate. Exempting the Work First participant for “good cause” when they are unable to meet work requirements because they have a disability or are caring for a family member with a disability, is not an alternative to evaluating the need for accommodations.

To ensure that individuals with disabilities have equal access to employment programs, the Work First staff must screen and assess all applicants and participants to determine the participant’s specific abilities and limitations. Screenings and assessments will occur periodically to address potential program participation barriers. Individuals may be referred to the Division of Vocational Rehabilitation for determination of their eligibility for such services, or to other qualified professionals for a comprehensive assessment.

Any applicant or recipient who meets the ADA’s definition of disabled, and those individuals caring for family members who are disabled, should be provided reasonable accommodations, if needed. Reasonable accommodations may include but are not limited to:

• Part-time work activities; • Reasonable accommodations for work activities; • Job restructuring, including part-time or modified work schedules, modification of equipment and examinations, provision of qualified readers, interpreters, or job coaches; • Additional assistance or increased supervision in work activities; • Assistance with application for benefits, including a notification process for those with learning disabilities; and

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49 • Specialized child care for a child with a disability.

Accommodations will be considered when scheduling appointments and requesting that the individual obtain and provide documents for verification purposes.

An individual, who has requested an accommodation and believes they have not been adequately accommodated, must notify the Work First case manager verbally or in writing. Within 7 workdays of the receipt of notification, the county should have a meeting to include the individual and/or his/her representative and appropriate staff. The county has 14 workdays from the date of the meeting to respond to the request. The county must notify the individual of the decision in writing within the 14 workdays from date of the meeting. The county department of social services/agencies are required to inform the applicant or recipient that disclosure of a disability is voluntary. This includes screening for a disability, including learning disabilities and mental health disorders. Nonetheless, counties must inquire about an individual’s health related limitations to determine the appropriate work assignments. The participant does not have to provide the information. Individuals, who believe they have been discriminated against based on disability (including failure to provide reasonable accommodation), race, national origin (including the failure to provide access to services to people with limited English proficiency) may file a complaint with the Office of Civil Rights (OCR) at the U.S. Department of Health and Human Services.

There are times when identification and treatment of a disability are necessary for program administration. Under these circumstances, a participant may be required to participate in efforts to evaluate a suspected disability and participate in necessary treatment. Those circumstances may include:

A. If a participant reports they are unable to work or have limited work capacity the individual may be required to substantiate their statements by providing medical documentation, and/or participating in screenings and evaluations as agreed on the MRA/Outcome Plan. Failure to comply may result in a sanction of benefits. All participants are given an opportunity to provide any required medical documentation before a sanction of their benefits occurs. B. If a participant has demonstrated an inability to successfully participate in work activities, or employment and the worker has reason to believe this is due to a disability or work limitation; the county may require the participant to be screened or evaluated to establish the necessary services to support the participant in achieving success in the Work First program. If the screening or evaluation determines that the participant requires treatment, the participant may be required to participate in the necessary treatment as a condition of the MRA/Outcome Plan.

Individuals with confirmed disabilities must be provided with reasonable accommodations and services to support their participation in employment and work- related activities.

TITLE VI REQUIREMENTS (ALL COUNTIES)

In accordance with federal law and U.S. Department of Health and Human Services (HHS) policy, county departments of social services/agencies are prohibited from

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50 discriminating against any person based on race, color, national origin, sex, age, religion, political affiliation or disability in admission, treatment or participation in its programs, services activities, or in employment. All counties are required to establish policies and practices in compliance with Title VI of the Social Security Act, as well as the provision of interpreter services for its citizens that require such accommodations.

To ensure equal access to employment programs, the Work First staff must screen and assess all applicants and participants to determine the individual’s specific abilities and limitations. Screenings and assessments will occur periodically to address potential program participation barriers.

To ensure effective communication and meaningful access to programs and services, individuals with disabilities or limited English proficient (LEP) will be notified of the availability of services at no cost. Such services may include but are not limited to: sign language interpretation and foreign language interpretation services.

Documents notifying applicants and program participants of adverse actions will be communicated in plain language and provided in the applicant’s primary language or provided with information on how to have the documents interpreted free of charge.

All members included in the Work First application must be US citizens or qualified or otherwise eligible immigrants.

If an applicant or recipient requires an interpreter, the county departments of social services/agencies must provide such services for the applicant or recipient. Generally, this service is provided during the initial contact with the applicant as well as during ongoing contacts.

All rules of confidentiality must be applied regarding citizenship/immigrant status. It is a breach of confidentiality to discuss an individual’s citizenship/immigrant status with employers, landlords, etc.

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51 CERTIFICATIONS REQUIRED OF THE GOVENOR

As Governor of the State of North Carolina, I hereby certify that during each fiscal year to which this state plan is applicable:

• This program will be known as the Work First program. • The provisions described in this TANF State Plan will be carried out in accordance with federal and state law. • The state will operate a Child Support Services Program in accordance with the state plan approved under Title IV-D of the Social Security Act. • The state will operate a Foster Care and Adoption Assistance program in accordance with the state plan approved under Title IV-E of the Social Security Act. • The state will take any actions that are necessary to ensure that children receiving assistance under Title IV-E of the Social Security Act are eligible for medical assistance under Title XIX of the Social Security Act. • The North Carolina Department of Health and Human Services is the agency responsible for supervising the program and administering program funds. • Local governments and private organizations have been consulted regarding the plan and design of welfare services in the state, and they have been given 45 days to submit comments on the plan and design of those services. • The state will provide each member of an Indian tribe, who is domiciled in the state and is not eligible for assistance under a tribal family assistance plan, with equitable access to assistance under the State program funded under Title IV-A of the Social Security Act. • The state has established and is enforcing standards and procedures to ensure against program fraud and abuse, including standards and procedures concerning nepotism, conflicts of interest among individuals responsible for the administration and supervision of the State program, kickbacks, and the use of political patronage. • The state has established, and is enforcing, standards and procedures to screen and identify individuals receiving assistance who have a history of domestic violence. While maintaining confidentiality, such individuals will be referred to counseling and supportive services and, pursuant to a determination of good cause, program requirements (such as time limits for individuals receiving assistance, residency requirements, child support cooperation requirements, and family cap provisions), are waived in cases where compliance with such requirements would make it more difficult for them to escape domestic violence or would unfairly penalize them.

_____________________________ Roy Cooper, Governor State of North Carolina

_____________________________ Date

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52 APPENDIX A Electronic Funds Transfer

Section 4004 of the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96) amends the Social Security Act, adding a requirement for states receiving TANF grants to “maintain policies and practices necessary to prevent assistance provided under the State program funded under this part from being used in any electronic benefit transfer transaction in any liquor store, any casino or gambling establishment, or retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for establishment.” The new requirements aim to ensure that cash assistance is used in a manner consistent with the purposes of TANF and to serve to promote the integrity of the program and the responsible stewardship of public funds.

There are currently two methods of issuance for Work First payments, electronic funds transfer (EFT), or electronic benefit transfer (EBT) card. This allows benefits to be provided in a timely manner, reduces theft and fraud, and eliminates the need to pay check-cashing fees. The methods of issuance are direct deposit to the individuals’ checking or savings account or EBT card. Direct deposit allows for the monthly Work First cash assistance payment to be electronically deposited to a personal savings or checking account of the case head. EBT is an electronic system that allows recipients to access their benefits with a plastic card, like a bank card.

Procedures and Strategies

In accordance with federal law, the Division is required to develop policies and procedures to prevent access to Work First cash assistance payment through electronic fund transactions at casinos, liquor stores, and establishments providing adult-oriented entertainment. The Division is also required to ensure recipients have adequate access to their cash assistance, and ensure recipients incur minimal fees or charges when using or withdrawing cash assistance funds.

For compliance, the Division implemented an education campaign for all Work First program applicants and recipients for compliance with the federal law. There was mass mailing to all Work First recipients regarding the transition to electronic payments in English and Spanish text. The electronic benefits brochure was revised and is distributed at initial application, eligibility review, and upon participant request. Work First applications are completed onsite at the local agency unless reasonable accommodations are required. The brochure explains the EBT payment process including; transaction restrictions for Work First cash assistance, related fees and access schedules. The Public Assistance Rights and Responsibilities Form, which is given to all applicants and recipients, has been revised to include language regarding EBT use restrictions. A Frequently Asked Questions (FAQ) about Electronic Benefits document was developed and is posted on the Division of Social Services public website for public viewing. The online FAQ reflects the EBT brochure’s information which is always accessible for public viewing and agency use . The Division collaborates with state and local agencies which regulate gaming, adult entertainment and liquor stores. The agencies are the North Carolina Alcohol Beverage Control (ABC) Commission, the local ABC Boards, North Carolina Public Safety and the Tribal Gaming Commission. Letters were mailed to the aforementioned regulatory and

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53 licensing agencies to educate and inform of the federal law regarding EBT transactions in the proscribed retail establishments. A request was also made to these agencies to partner and collaborate with the agencies in developing additional strategies for enforcement. These regulatory and licensing agencies were provided with a facsimile of the EBT card to acquaint them with this prohibited method of payment. The Division will have ongoing dialogue with the agencies to evaluate the effectiveness of this initiative and to implement additional strategies as necessary. The Division provided local social service agencies policy guidance regarding the transition to electronic payment issuance and EBT restrictions. Local social service agencies have access to EBT brochures and FAQ for distribution when engaging applicants and recipients to ensure that recipients are aware of the EBT fees and restrictions. Local social service agencies are encouraged to ensure that Work First recipients are informed and reminded of the restrictions on a regular basis. The Division continues to develop and implement strategies for EBT restrictions. These ongoing steps include collaborating with the EBT vendor to identify and block access to restricted Automated Teller Machines (ATM) and to monitor and maintain a current list of prohibited locations. Specific control methods and/or system enhancements include, but not be limited to: a) Identifying locations where EBT cash transactions are prohibited; b) Blocking ATM cash transactions at specified locations; and c) Blocking EBT cash purchase transactions at the following locations: 1. Drinking Places (Alcoholic Bev) – Bars, Taverns, Nightclubs 2. Package Stores, Beer, Wine, Liquor 3. Betting (including Lottery/Casino/Wagers at Race Track 4. Sweepstakes Parlors (online gambling) 5. Adult Entertainment (nightclubs, strip clubs) The Division will periodically evaluate the effectiveness of the policies and procedures to prevent the use of Work First payments via electronic benefit transactions at specific locations and adjust policies as necessary. Policies and Fees There may be fees associated with direct deposit that are imposed by the recipients’ financial institution. These fees are the responsibility of the recipient. The financial institution cannot impose charges for an account that it does not impose on its other customers for that same type of account. Work First households will receive the initial EBT card at no cost. If the family receives Food and Nutrition Services (FNS) benefits, the Work First payment may be issued on the same card. The first cash withdrawal transaction at an Automated Teller Machine (ATM) is free. There is a $0.85 for each additional cash withdrawal. There are not any fees for point-of sale (POS) transactions. Work First households that request a replacement EBT card shall be assessed a $2.50 fee. The fee shall be deducted from the account of the Work First household. The fee shall be refunded if the EBT card:

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54 a) was lost in the mail or damaged by the vendor prior to receipt by the Work First household b) is being replaced due to a name change on card c) was lost due to a natural disaster such as a fire, flood, tornado or hurricane d) was damaged by a retailer or vendor. Fees associated with the use of the EBT card will be deducted from the balance of the card based on the available benefits in the account. If the recipient is receiving FNS benefits and Work First, the $2.50 card replacement fee will be deducted from the FNS allotment first. If there are not sufficient funds in the FNS EBT account or the recipient does receive FNS, the replacement card fee will be deducted from the program account with funds available to cover the fee. If there are not sufficient funds in any single account, the EBT system will issue the card and deduct the funds at the next benefit issuance. Ensuring Adequate Access

Many Work First households do not have access to transportation or the funds for transportation if ATM or POS machines in their neighborhoods are restricted and they are forced to travel further to obtain benefits. To ensure adequate access, the Division: (1) allows recipients to withdraw funds based on their needs, without any restrictions on frequency or amount; (2) provides the choice to receive funds via direct deposit or EBT; (3) provides information regarding fees and surcharges, at minimum, during the application and review process.

All local county agencies are required to inform and discuss with all applicants/recipients the Electronic Issuance process, so the best decision can be made for the family. EBT Brochures and a Frequently Asked Questions (FAQ) flyer are available at the local county agency. Counties maintain inventory of EBT brochures. Counties can order brochures yearly or as needed. The FAQ is also available on the NC DHHS/DSS website. The Division continues to collaborate with local agencies to ensure adequate access to benefits and to mitigate any access barriers as identified for participants.

Misuse

The Division applies compliance measures when it is determined there is EBT misuse. Misuse of the card may result in the following: • a determination of fraudulent activity and repayment of benefits; • assignment of a protective payee; and/or • loss of cash assistance benefits.

At the initial infraction, a protective payee will be assigned for period of 6 months or until the next case review, whichever is less. If a protective payee is assigned the Work First cash assistance payment will be issued on a separate EBT dedicated to the Work First payment only. Co-mingled funds (Work First and FNS funds) issued on the same card will be issued on a separate EBT card if a violation occurs.

Subsequent infractions may result in the case head being excluded from the Work First cash assistance payment. The children will remain eligible for the reduced cash assistance payment with an assigned protective payee. The case head will remain

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55 subject to the cash assistance time limits, program requirements and work requirements if applicable. In addition, efforts will be made to recoup any funds accessed or used in the restricted locations.

Individuals who inadvertently use an EBT card at prohibited locations will be evaluated on a case by case basis to ensure non-discrimination. When violations are identified, such actions are subject to applicable appeals procedures needed to meet due process requirements. The Division will determine on an individual basis and/or evaluate for good cause if benefits should be terminated for the whole family or adults only.

Monitoring

As a part of the Work First Compliance Monitoring Plan, selected cases that display recipients’ transaction records are reviewed to determine compliance and ensure that purchases were not made at any restricted locations, which are: casinos, gambling casinos or gaming establishments or any retail establishment which provides adult- oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment. The methodology includes a random case selection of ten cases per county (Child Only and Work First Benefits) that are reviewed, evaluated and monitored each quarter of the State Fiscal Year. EBTedge (the EBT automated data system) and the North Carolina Families Accessing Services through Technology (NC FAST) automated case management systems are utilized to monitor these cases

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56 APPENDIX B

WORK OVER WELFARE IN CABARRUS COUNTY

In legislation ratified June 12, 2003, the North Carolina General Assembly provided for the continuation of the Work Over Welfare (WOW) Program in Cabarrus County as a demonstration welfare reform program for certain Work First and Food and Nutrition Services recipients.

Except as described below, Work First in Cabarrus County operates under the standard policies described in the State TANF Plan.

The Cabarrus County WOW Program provides job opportunities to all able-bodied Work First and FNS who are required to participate in Work First Employment Services.

WOW is primarily a wage-supplementation program that diverts the Work First benefits that would be paid to recipients to match employer funds and subsidize the recipients’ wages.

Wages paid to WOW participants, which contain grant-diverted funds, are exempt from income for purpose of determining eligibility for assistance.

Participants are subject to termination of Work First benefits for the household the month following any month in which they fail to comply with participation requirements. Benefits are restored after the client agrees to comply with requirements and files a new application.

To ensure that children are not harmed, sanctioned households are monitored by social workers, and benefits may be paid directly to vendors for basic needs.

All individuals will be evaluated for ongoing Medicaid any time Work First terminates.

A recipient who voluntarily terminates employment without good cause will be ineligible for Work First until the individual returns to work, provided work opportunities are available.

Failure or refusal to pursue child support without good cause is grounds for denial of benefits.

Benefit Diversion payments will be made in amounts up to one thousand two hundred dollars ($1,200). Applicants receiving the diversion payment will not be eligible for ongoing Work First benefits for a period of three months from the date of receipt of the diversion payment. Individuals receiving a diversion payment must attend budgetary counseling and may be required to have a protective payee for the diversion payment.

Federal funds may be transferred from the TANF Block Grant to the Social Services Block Grant to be used to pay for home studies, attorney fees, and ongoing cash payments for the adoptive family, and other adoption expenses for Work First children who are living with relatives other than their biological parents.

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57

APPENDIX C - ELECTING COUNTY PROTOCOLS

BEAUFORT COUNTY

1. If a participant receives Benefit Diversion and subsequently applies for and begins to receive Work First cash assistance during the next twelve months, the participant will be responsible for paying back any diversion assistance that has been received. 2. A case will be ineligible for one month following termination for failure to return a completed quarterly report. 3. A case will be ineligible for one month following termination for failure to attend and complete a parenting course. 4. Count real property as a resource excluding primary residence. 5. No exception to family cap policy for a child born to a minor mother. 6. A child or parent may be temporarily absent from the home only for documented medical treatment, or for up to 30 days to visit another relative. 7. All mandatory participants, excluding child only cases and cases that involve minor fathers are required to complete a parenting course. Failure to attend and complete will result in termination of Work First cash assistance. 8. Applicants must agree to and worker must complete a home visit prior to approval of an application. 9. Eliminate all re-opens. Family must reapply if terminated for any reason. 10. Applicants excluding intact families must cooperate with Child Support Services not more than 10 days prior to applying for Work First cash assistance. Applicant will see Child Support worker on date of application. 11. At or below 200% of the poverty level, an applicant must be actively seeking employment or be employed. The certification period will be for three months with the possibility of an extension not to exceed six months within a 12-month period. 12. Beaufort County will provide an emergency assistance payment to Safety Resource families that request assistance with caring for children placed in their home by Child Welfare when the permanent plan is to return the child(ren) to the parent’s care within 6 months. 13. Caretakers are encouraged to seek legal custody for child(ren). 14. Single parents with a child 4-month-old or younger are exempt from the requirement to participate in Work First employment activities. 15. If mandatory (able-bodied) participants will be required to complete at least 35 hours per week of work or work-related activities. Two-parent households are required to complete 55 hours per week of work or work-related activities 16. Three-step hearing process: (1) local hearing with hearing officer designated by Agency Director; (2) Hearing before DSS Board and (3) Petition to Superior Court.

CALDWELL COUNTY

1. Applicant is responsible for all verifications needed to complete the application. Caldwell County will assist applicants with disabilities or limited English proficiency upon request. 2. Benefit Diversion may be offered only once every two years. 3. Applicants will be denied if the applicant does not comply with a signed MRA if good cause is not met. 4. All applicants, parents and caretakers unless otherwise specified, must complete

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58 the Budget Wisely class with a minimum attendance time of 2 hours within 10 calendar days of applying for Work First. Failure to do so will result in the application being denied on the 11th day unless there is good cause. Attendance will not be required if the applicant has successfully completed the class with a minimum attendance time of 2 hours within 30 calendar days prior to the application date. Non-parent caretakers may be exempt from the budget Wisely Class per case manager discretion. 5. Participants’ statement of kinship will be acceptable at review unless questionable. 6. All applicants whose Work First case terminate for not completing a review will be required to provide all verifications needed for the review (school attendance, health checkups, immunizations, etc.) when re-applying for Work First cash assistance within 3 months of the termination date. The 3-month time-period includes the one (1) month of ineligibility. 7. All Work First cases will be reviewed every 12 months. 8. School attendance - The caretaker must provide proof of school attendance for all school age children at application and review by providing a current report card or attendance summary print-out from the school. Work First Social Workers verify school attendance with the School Social Workers monthly. Therefore, it is not necessary for them to call the schools when a Quarterly Report is received. Failure to provide proof of school attendance or verification of enrollment at review results in an incomplete review unless there is good cause. Failure to provide proof of school attendance or verification of enrollment at application results in the application being denied on the 11th day unless there is good cause. 9. All children K-8th grades cannot have more than 10 unexcused absences in a school grading period unless there is good cause. All children in 9th – 12th grades cannot have more than 10 unexcused cumulative class absences in a grading period unless there is good cause. More than 10 unexcused absences in a grading period will result in a sanction of 1 month of eligibility or until compliance whichever is greater. 10. Cases will not be re-opened unless it is an agency error. The applicant/recipient may re-apply for Work First. 11. Recipients who are no longer eligible for Work First and are then placed on Transitional Medicaid are required to continue cooperation with Child Support if the Transitional Medicaid case remains active. Failure to do so will result in Medicaid benefits terminating for the adult caretaker(s) unless good cause exists. Ongoing Medicaid will be evaluated for the child(ren) in the household. 12. All applicants must meet and cooperate with child support within 10 calendar days of applying for Work First. Failure to do so will result in the application being denied unless there is good cause. 13. All income, except for SSI income, will be counted for parents living in the home to determine Work First eligibility. 14. Cases where all children in the household are receiving SSI benefits will not be eligible for Work First as there is no eligible child in the home. 15. Single parents may claim their “S” exemption for the first 3 months of a child’s life. Once the 12-month lifetime exemption has been exhausted, the parent will be required to participate in the employment program as soon as authorization is given from her medical professional. Also, if a parent volunteers to participate in the employment program, he/she may not reclaim the exemption for the same child. 16. All parents in the home must have their GED or high school diploma or be enrolled in and satisfactorily attending education enhancement classes (i.e.: GED, Adult

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59 High School, ESL, Literacy, etc.) unless there is good cause. Verification of attendance and satisfactory progress will be provided monthly by the parent(s) or the Work First case will terminate unless there is good cause. Parents will be required to complete a minimum of 15 class hours per week unless there is good cause. 17. All mandatory able-bodied Work First participants will be required to complete at least 35 hours per week of work or work-related activities to meet participation hours unless there is good cause. 18. If both quarterly reporting deadlines are missed without good cause, there will be one (1) month of ineligibility.

CATAWBA COUNTY

1. To approve a Benefit Diversion application, Applicants must complete the following requirements: A. cooperate with Child Support; B. apply or be receiving Food and Nutrition Services; C. register with Division of Workforce Solutions – NCWorks if not already employed or job being held for the applicant and D. if monetarily eligible for Unemployment Benefits (UIB) must apply for the UIB. 2. Applicant must cooperate with child support within 12-calendar days of applying for Work First cash assistance. If the applicant fails or refuses to do so without good cause, deny the application for Work First cash assistance. 3. Applicant must apply for Medicaid or be receiving Medicaid before applying for Work First. 4. Applicant must be receiving Food and Nutrition Services (FNS) (food assistance) or be evaluated for FNS within 12 calendar days of applying for Work First cash assistance. If the applicant fails or refuses to do so without good cause, deny the application for Work First and notify the Medicaid worker (applicants must apply for Medicaid before applying for Work First cash assistance). 5. Applicant must be assessed for Economic Literacy within 12-calendar days of applying for Work First cash assistance by Work First staff. The Economic Literacy assessment is an integral part of the application process. If the applicant fails or refuses to be assessed, deny the application for Work First cash assistance and evaluate for Medicaid. 6. All Work First applicants and recipients referred to Vocational Rehabilitation must complete the application and comply with all recommendations. Failure or refusal to comply without good cause will result in the case being denied or terminated. Future eligibility is contingent upon completing application and cooperating with Vocational Rehabilitation. 7. Cases where all children in the household are receiving SSI benefits will not be eligible for Work First as there is no eligible child in the home. This does not apply to Benefit Diversion cases. 8. Eliminate the resources limits for Child Only Cases. The county will follow the state’s standard policy for all other cases. 9. When a Work First case is transferred to Catawba County, an appointment will be made for a client to come to the office within ten business days to sign a new MRA and be evaluated for any needed documentation. Failure to keep the appointment will result in the WF case being closed at the end of the current month (unless there is good cause).

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60 10. If a Work First case is closed for any reason (without good cause), the case will not be eligible for re-open. The applicant/recipient may reapply for Work First. 11. All adults in an Employment case must have a High School Degree or equivalent OR be enrolled in a GED or Adult High School classes unless there is good cause. 12. A Child Enhancement fund will be created to work with families in providing financial assistance to enhance the quality of life for the child. Examples: band fees, uniform fees, dues for Girl Scouts/Boy Scouts, etc. 13. Retention Services: Catawba County provides a one-time lump sum Employment Retention Bonus of $400 to Work First participants whose Work First check terminates due to earned income and who remain employed: • With the same employer (unless the change is an improvement), and • Employed full time (30+ hours per week) for four consecutive months following termination of their Work First Cash benefit, and • Income eligible based on the 200% level of poverty worksheet

LENOIR COUNTY

1. Applicants, excluding intact families, must cooperate with the Child Support Program before applying for Work First cash assistance. 2. Benefit levels may be adjusted at the Director’s discretion based on the availability of funding. 3. A child may be temporarily absent from the home up to 6 months when placed with a safety resource by Child Welfare, provided that the permanent plan is to return the child to the parent/caretaker within that timeframe and the parent is compliant with the Child Welfare family plan. 4. All unemployed or under-employed adult applicants/participants must register for work at the Lenoir Community College (LCC), NCWorks Career Center and local temporary payment agencies within 2 weeks of their application for Work First cash assistance benefits. Work First Eligible (WFE) participants must complete the Work Keys testing and Key Train on-line classes to obtain necessary skills for their desired field of work. 5. The family is not eligible for Work First cash assistance benefits for 3 months after voluntarily quitting a job, or a WFE work experience placement, voluntarily reducing work hours or abandoning a job without a good cause reason. The family is not eligible for Work First cash assistance for up to 3 months if the parent is fired from a paid job or WFE work experience placement without good cause. Work First cash assistance benefits will terminate if the WFE participant is non-compliant with the MRA for 3 consecutive months. Quitting a job or reducing work hours to attend college, training, or other post-secondary education does not meet the definition of “good cause.” Job abandonment is defined as failing to go to work and failure to notify the employer. For applicants, the 3 months of ineligibility begin the month the parent stops work or the work experience or reduces work hours or rate of pay. For recipients, the 3 months of ineligibility begin the month following expiration of an advance notice. The participant may cure this sanction by returning to work at an equivalent rate of pay and number of work hours compared to the last job. The family is not eligible for Work First cash assistance for up to 3 months if the parent is fired from a paid job or work experience placement unless there is good cause. 6. Work First cash assistance recipients who are terminated because of non- compliance with their MRA/Outcome Plan requirements are not eligible for Work First cash assistance benefits for one month following termination. (Example: If the client

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61 is terminated in August for failure to meet their MRA/Outcome Plan requirements, they will be ineligible for the month of September.) 7. First level hearings will be heard by Agency Supervisors not involved with Work First cash assistance or WFE. Second level hearings will be heard by the Lenoir County DSS Board. The appellant may petition the Lenoir County Superior Court if dissatisfied with the result of the Level 2 hearing. The Lenoir County DSS Board will serve as hearing officer for Hardship Extensions to the 24 and 60-month time limits. 8. Transportation reimbursement is limited to $8 per day for in county travel and $11 per day for out-of- county travel when the participant provides his/her own transportation. Transportation services for non-custodial parents of a Work First child and non-Work First families with a total income not exceeding 200% of the federal poverty limit are limited to $600 per month up to a maximum of $1200 or 4 consecutive months in a State Fiscal Year. 9. If funding allows, Lenoir County will provide a supplemental payment for up to six months to Safety Resource families with whom children are placed by Child Welfare and when the permanent plan is to return the child(ren) to the parent’s care within 6 months when the family requests assistance, provided the family’s income is below 200% of poverty. This payment is intended to provide the Safety Resource family with additional financial support to care for these additional children and meet the increased expenses associated with bringing a new child or children into the home. The payment may continue for a maximum of six months, until the child(ren) no longer reside with the Safety Resource family, or until available funding is exhausted, whichever occurs first. Payments will be made at the point of placement and at the first of subsequent months. The payment to Safety Resource families will be equal to the child-only Work First payment for the children placed with a safety resource. County MOE and/or Federal TANF funds will support this payment. 10. Single parents of a child less than 3 months old may request an exemption from work requirements up to a maximum of 12 months in a lifetime.

LINCOLN COUNTY

1. All applicants seeking Work First cash assistance for children with an absent parent are referred to Child Support immediately after signing an application for Work First. 2. An assessment will be completed for child only cases to include but not limited to: immediate home visits and interviews with all adults and child(ren). These visits will continue at least annually with contacts at least every 6 months. 3. Benefit Diversion requirements will be as follows: able-bodied single parent and two- parent households being considered for Benefit Diversion must have employment (35 hours per week) beginning within 2 weeks of WF application. 4. Work First participants are not required to do Community Service. Instead, Work Experience is offered after 2 months of participating in Employment Services without obtaining gainful employment. 5. Adult Incentive Program – The Road to Success This program will be used to provide incentives to adults participating in employment services. The intent is to reward participants for job readiness skill advancement and extra effort put forth in their search for permanent employment and self-sufficiency. Incentives will be in the form of gift cards that will allow participants to purchase personal items, or to spoil themselves as a result of their successful efforts. There are eight (8) activities along the way and three (3) rewards (See Road to Success at the front of this plan). Youth Incentive Program

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62 The youth incentive program is less structured than the adult program to allow for flexibility and each unique child. The incentives are similar and will be given as progress is made toward achieving their educational goals. The social worker will begin engaging with youth aged 14 and up to begin the discussion and goal planning for their future. The purpose of these incentives is to help instill a strong work ethic (success brings reward) at an early age. The program places an emphasis on education or the work experience needed to achieve their future goals and dreams.

MACON COUNTY

1. To receive Work First, the children must live with an adult relative who is within a certain degree of kinship: A. Parent, including a biological mother, father, and adoptive parent. B. Legal father or mother, step-parents. C. An alleged father or other alleged paternal relatives. D. Spouses of these individuals also meet kinship even if the marriage has been terminated by death or divorce. E. Grandparents, great-grandparents, great-great-grandparents. F. Uncles or aunts, great uncle or aunt, great-great uncle or aunt, nephew, niece, first cousin. G. Brother, sister, half-brothers, half-sister, step-brother and step-sister. H. Other adults who have court ordered legal custody or legal guardianship of a child. I. Brother, sister, including half-brothers and sisters. Biological parents and relatives are not eligible to receive Work First for a child that has been adopted out of the family. This relative must be providing care for the child on a day-to-day basis and be responsible for ongoing decisions regarding the child’s well-being. A relative who meets the above relationships must be included in the case with the child, unless they are an SSI recipient receiving SSI benefits. 2. All Work First applicants will have a three-month penalty imposed for quitting a job unless “good cause” is established by intake caseworker and supervisor. The ineligibility period is defined as the month of application and the next three months. The individual may reapply for Work First at any time but are not eligible during the job quit penalty period. There is no cure for the job quit penalty once the penalty begins. It continues until the full four months is completed, even if the individual obtains employment. 3. Vendor payments will be agreed upon by the families and DSS and documented in the MRA upon signing that form. Families who fail to complete their required hours as agreed upon in their MRA are in non-compliance. Families must complete the required hours to be eligible to receive the benefit assistance. 4. All Work First work eligible individuals are required to be actively participating in work and work-related activities for a total of 40 hours per week. Participation will be a combination of activities which include but not limited to employment, subsidized employment, vocational training, skills training, education, work experience, substance abuse counseling, mental health, vocational rehabilitation, and job readiness/job search. 5. Reviews for Child-Only cases will be completed every year unless the following circumstances indicate an earlier review: • the child reaches 18 years of age; • the child moves out of the home of the caregiver; or • the death of the caregiver.

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63 Macon County will forego the first six-month review as stated in the TANF State Plan and review each case annually. 6. Retention Assistance -The agency will provide assistance to working families for up to 3 months after leaving Work First for work. 7. Caretakers of infants - The agency is committed to the safety and well-being of Macon County’s children. Agency staff will assist caretakers of infants once the child reaches 3 months of age by requiring participation in work, education, or job- readiness activities and assisting with referrals to childcare providers. As with other participants, these caretakers will be referred to job searches and retention services.

WILSON COUNTY

1. All Work First “work eligible” individuals are required to be actively participating in work and work-related activities for a minimum of 35 hours per week, and the first 20 hours of their participation must be in federally countable activities. 2. Offer 200% services to eligible TANF families to ensure that all family members are progressing educationally and economically through intense case management services. The intent is to continue efforts to help parents and their children achieve a high school diploma, prevent pregnancy or repeat pregnancy and continue pathways to self- sufficiency. 3. Continue the Educational Incentive Rewards Program to reward families who achieve their GED, obtain a skills training certificate or a two-year degree. 4. Eliminate the Resource Limit for families applying for Work First.

5. All Work First Employment Services participants whose employment results in termination of their Work First benefits or who are receiving Job Bonus will be referred to our Financial Social Work Services at Career Plus to develop a Financial Education and Savings Plan. Families that follow through with their Financial and Savings Goals and achieve outcomes/goals will be eligible for a financial education incentive bonus. Bonuses will be authorized once the family meets any of their identified goals. A family may receive up to three (3) financial incentive bonuses per year based on achieving behavioral changing goals. 6. If a Work First cash assistance child only case head fails to return a Quarterly Review and requests reopening due to termination from that non-compliance, the participant/family’s Work First cash assistance case will be re-opened with a one- month penalty for failure to comply. 7. All Child Only Kinship Care cases that have a prior involvement with CPS, Prevention, Juvenile Justice, or Foster Care within the last 6 months will be required to comply with the Kinship Care Family Assessment. 8. All Child Only Work First cash assistance cases with children age 6-17 who are not attending school regularly or whose grades are not on grade level will be required to comply with the Kinship Care Family Assessment. Caretakers who do not comply with the school requirements and participate in the Kinship Care Family Assessment and who are determined to not have good cause will be sanctioned and may not be eligible to receive Work First cash assistance payment (Work First Manual Section 103). 9. Work First “work ready” families will be directed to participate in Express Employment Pathways Program. 10. Work First applicants are required to make a Child Support Establishment application prior to making a Work First cash assistance application. 11. All Work First cash assistance applicants will have a 1-month penalty imposed for

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64 quitting a job unless “good cause” is established. 12. Work First cases will not be transferred to Medicaid after one month of not receiving Work First Benefits. Work First cases will be kept open until the third month of not receiving Work First Benefits. (This includes the month of application if employment services are being offered.) All applicants sign agreement at application stating they understand how this may affect their child support payments. Cases that don’t comply during the first month, often comply during 2nd month.

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65 APPENDIX D. SUMMARY OF PUBLIC COMMENTS RECEIVED

In compliance with federal and state statutes, the North Carolina Temporary Assistance for Needy Families (TANF) State Plan for FFY 2019-2022 was developed in consultation with local governments and private sector organizations regarding the plan and design of public assistance in the State of North Carolina, to ensure services are provided in a manner appropriate to local populations. The draft of the TANF State Plan was initially posted for public comment on January 10, 2019 and was posted for the required 45-day period. There were no public comments received. A second draft of the TANF State Plan was posted for public comment on XXXX and was posted for the required 45-day period. There XXXX public comments received.

i NORTH CAROLINA’S TEMPORARY ASSISTANCE FOR NEEDY FAMILIES STATE PLAN P.L. 104-193 THE WORK FIRST PROGRAM NORTH CAROLINA DEPARTMENT OF HEALTH AND HUMAN SERVICES DIVISION OF SOCIAL SERVICES Effective October 1, 2022 – September 30, 2025

ii TABLE OF CONTENTS Introduction .................................................................................................................. 4 State Welfare Legislation ............................................................................................. 7 Statewide Social Services Reform and Work First Goals ......................................... 7 Program Administration .............................................................................................. 9 Work First Eligibility Criteria (Standard Counties Unless Otherwise Noted) ........ 11 Non-Financial Eligibility Rules .................................................................................. 12 Financial Rules ........................................................................................................... 17 Application Process ................................................................................................... 18 Eligibility Reviews ...................................................................................................... 20 Child-Only Cases........................................................................................................ 20 Benefit Diversion ....................................................................................................... 21 Work First Benefits Payment Policies………………..…………………………….……22 Electronic Funds Transfer (EFT)…………..……………………………………….……. 23 Electronic Benefit Transfer (EBT) Monitoring ......................................................... 24 Sanctions. ............................................................................................................... …24 Personal Responsibilities and Work Requirements..……………………….….....…..25 Mutual Responsibility Agreement (MRA)/Outcome Plan…………………….…….…26 Employment Assistance for Work Eligible Individuals……………………………….27 Work Responsibilities ................................................................................................ 27 Work Verification Requirements ............................................................................... 29 Child Care Definitions ................................................................................................ 30 Head Start/Early Education ....................................................................................... 31 Emergency Assistance (All Counties) ..................................................................... .31 Disaster Assistance (All Counties) .......................................................................... .32 Appeals Process ........................................................................................................ 34 Work First Services .................................................................................................... 34 Eldercare Training ...................................................................................................... 36 Homelessness ............................................................................................................ 36 Voter Registration ...................................................................................................... 37 Workforce Innovation and Opportunity Act (WIOA) ................................................ 38 Substance Use and Mental Health Initiative ............................................................ 39 Fraud and Abuse ........................................................................................................ 41 Out-of-Wedlock Births ............................................................................................... 41

iii Statutory Rape ............................................................................................................ 42 Formation and Maintenance of Two-Parent Families .............................................. 43 Native American Tribal Plan ...................................................................................... 43 Individual Development Accounts (IDA) .................................................................. 43 Confidentiality ............................................................................................................ 43 Family Violence Option .............................................................................................. 44 Local Demonstrations or Pilot Programs ................................................................. 45 TANF Eligible Families ............................................................................................... 46 Marriage Equality ....................................................................................................... 49 Use of Funds .............................................................................................................. 49 Maintenance of Effort ................................................................................................. 50 Implementation ........................................................................................................... 51 Americans With Disabilities Act Requirements (All Counties) .............................. 52 Title VI Requirements (All Counties) ........................................................................ 54 Certifications Required of the Governor .................................................................. 56 Appendix A, Electronic Funds Transfer ................................................................... 58 • Procedures and Strategies ........................................................................ 58 • Policies and Fees ……………………………………………………………….59 • Ensuring Adequate Access …………………………………………………...60 • Misuse …………………………………………………………………………….60 • Monitoring ………………………………………………………………………..61 Appendix B, Work Over Welfare in Cabarrus County ............................................. 62 Appendix C, Electing County Protocols ................................................................... 63 Appendix D, Summary of Public Comments Received……………………………….71

North Carolina

4 WORK FIRST STATE PLAN TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)

INTRODUCTION

Vision and Mission The NC Department of Health and Human Services (NC DHHS) works to advance the health, safety, and well-being of all North Carolinians in collaboration with a wide array of partners and stakeholders. Much of this work involves managing the delivery of services to North Carolina’s most vulnerable populations, including children, seniors, people with disabilities, and low-income individuals and families. DHHS touches the lives of millions of North Carolinians. Our goals reflect the wide range of programs administered and service populations.

Goals NC DHHS believes health is affected by many factors beyond the medical care provided within the four walls of a hospital or clinic. While access to high-quality medical care is critical, research shows up to 80 percent of a person’s health is determined by social and environmental factors and the behaviors that emerge as a result. A substantial body of research has established that having an unmet resource need, including experiencing food insecurity, housing instability, unmet transportation needs and interpersonal violence or toxic stress, can significantly and negatively impact health and well-being. It can also increase healthcare utilization and costs. To that end, NC DHHS has innovative programs to help connect people to needed resources to improve their health and well- being.

Departmental Goals for 2021-2023 are: • Advance health equity by reducing disparities in opportunity and outcomes for historically marginalized populations within DHHS and across the state. • Help North Carolinians end the pandemic, control the spread of COVID-19, recover stronger, and be prepared for future public health crises with an emphasis on initiatives serving those communities most impacted. • Build an innovative, coordinated, and whole-person — physical, mental and social health — centered system that addresses both medical and non-medical drivers of health. • Turn the tide on North Carolina’s opioid and substance use crisis. • Improve child and family well-being so all children have the opportunity to develop to their full potential and thrive. • Support individuals with disabilities and older adults in leading safe, healthy and fulfilling lives. • Achieve operational excellence by living our values — belonging, joy, people- focused, proactive communication, stewardship, teamwork, and transparency.

These goals support our key work to: • Buy health for people through our Medicaid program, including working with underserved communities to improve access to quality health care and reduce health disparities. • Safeguard public health by protecting communities from communicable and chronic diseases, epidemics, and contaminated food/water. • Protect the safety, security and well-being of children and vulnerable adults.

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5 • Support individuals with disabilities and older adults in leading healthy and fulfilling lives. • Promote family economic independence and self-sufficiency. • Ensure high standards in the many health care facilities we operate or regulate.

North Carolina’s TANF Program North Carolina’s Temporary Assistance for Needy Families (TANF) program, called Work First (WF), is one of the many programs that connects families to resources to support wellness and economic self-sufficiency. The program is based on the premise that parents have a responsibility to support themselves and their children.

The Work First program promotes a strengths-based, family-centered practice approach and shares in the mission of the NC DHHS, in collaboration with its partners, to protect the health and safety of all North Carolinians and provide essential human services. NC DHHS is responsible for establishing, supervising and monitoring the Work First Program. At present, all services and benefits are delivered by county department of social services in North Carolina’s 100 counties.

Work First provides parents with short-term training and other services to help them become employed and move toward self-sufficiency. Other families, in which grandparents and relatives are caring for their relative children and legal guardians can receive services and support that prevent children from unnecessarily entering the foster care system. Of all TANF caseloads, grandparent and relative cases represent the highest caseloads in North Carolina.

Ultimately, North Carolina’s goal is to help all families move to self-sufficiency. Many families can successfully leave the Work First program. Others, because of a hardship or disability, may have a harder time becoming self-sufficient. With those families, the role of the Work First program is to ensure that families receive all available benefits and services, such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Vocational Rehabilitation.

North Carolina’s success at helping families move from Work First to work thus far has led to a broadened focus for the Work First program. No longer is the focus just on helping those families who receive Work First Cash Assistance obtain employment. North Carolina has added the flexibility and program structure for counties to provide former Work First families with job retention and child and family enrichment services designed to help ensure families experience long-term success. Further, since child support is critical to ensuring families’ success, North Carolina allows counties to provide work-related services to non-custodial parents of Work First children.

In North Carolina, Work First emphasizes three goals for its Work First programs and has identified the following strategies:

Goal 1: Diversion Support families in their efforts to maintain self-sufficiency through unexpected emergencies by providing short-term assistance and resources. Strategy 1: Connect qualifying families with Benefit Diversion, Emergency Assistance, and/or Work First Services for Low-Income Families below or at 200% of the Federal Poverty Level

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6 Strategy 2: Provide Employment Services for Non-Custodial Parents and other supportive services, if applicable.

Strategy 3: Align resources and referral processes for unexpected emergencies (i.e. food, housing and other needs) with NCCARE360, the first statewide network that unites health care and human services organizations with a shared technology that enables a coordinated, community-oriented, person-centered approach for delivering care in North Carolina. Goal 2: Achieving Sustainable Employment Families receiving cash assistance and Work First Family Services will obtain sustaining employment. Strategy 1 Make work a mandatory program requirement with certain exceptions.

Strategy 2 Limit how long a family can receive Work First cash assistance. Once the participants move into the work components of the program, they can continue to receive benefits for up to 24 months. In most cases, families who have reached the 24-month limit cannot receive Work First Cash Assistance for three years. Federal law sets a 60- month cumulative lifetime limit for receiving these benefits.

Strategy 3 Require all adults who are included in the assistance payment to sign a Mutual Responsibility Agreement (MRA-B)/Outcome Plan. Goal 3: Retaining Stable Employment Families who exit Work First will remain self-sufficient. Strategy 1 Provide families with tools to save money and help to make sure they really are better off working than on Work First.

Strategy 2 Increase resource limits to ease the burden on low-income families pursuant to the change from Aid to Families with Dependent Children (AFDC) to Work First.

Strategy 3 Raise income eligibility limits for families who receive subsidized child care to help families stay employed.

Strategy 4 Counties to continue providing services, such as transportation, child care, financial counseling, short-term training, and child and family enrichment services to families whose income is at or below 200% of the federal poverty level.

Strategy 5 Families leaving Work First cash assistance for work may receive a Job Bonus payment for up to three months.

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7 Ensuring optimal health and well-being of all North Carolinians is of the utmost concern. Toward that end, North Carolina has taken advantage of the opportunity offered by the TANF Block Grant to enhance our efforts in this area.

The NC TANF program provided services to approximately 91,537 cases with 166, participants during the previous state plan years. Adult recipients that remain on the caseload have multiple barriers that include but are not limited to medical and mental health issues, learning disabilities, lack of skills and work experience.

Federal Fiscal Year Caseload Size # of Participants FFY 2019 21,564 39,183 FFY 2020 17,874 32,369 FFY 2021 16,485

30,954

Due to the changes in the work requirements associated with the program, low Work First benefit amounts, an increase in the job market in NC, and the Public Health Emergency, the Work First program has and continues to experience a continuous decline in individuals applying for assistance.

In accordance with federal law, TANF funds, as well as Maintenance of Efforts (MOE) funds must meet one of four purposes. The four purposes under TANF are:

1. Assist needy families so that children may be cared for in their own homes or in the homes of relatives; 2. Reduce dependence of needy parents by promoting job preparation, work, and/or marriage; 3. Prevent or reduce the incidence of out-of-wedlock pregnancies; and 4. Encourage the formation and maintenance of two-parent families.

STATE WELFARE LEGISLATION

North Carolina General Statute 108A-27 provides for TANF program development by local county governments. The law refers to counties as Standard or Electing. Standard Counties operate the state’s Work First program based on the policies written in the Work First Manual, while Electing counties have additional flexibility in program design that allows the county to determine the county’s eligibility criteria and payment options. All counties have maximum flexibility in designing their employment programs to meet local needs. However, state law provides that Electing Counties, when combined, can contain no more than 15.5% of the state’s Work First cases. The state and each Electing County’s eligibility criteria are described later in this document. Throughout this plan, all references to “Electing counties” refer to those counties that have been approved as Electing.

STATEWIDE SOCIAL SERVICES REFORM AND WORK FIRST GOALS

Rylan’s Law (Session Law 2017-41) is state legislation enacted in July 2017 which

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8 governs a legislatively required, statewide reformation of North Carolina’s social services programs. Recent studies indicated more accountability and oversight are needed for county Departments of Social Services to produce better performance and outcomes. Effective March 1, 2020, Rylan’s Law required the establishment of regional offices that provide closer, more direct, regional supervision and support to county Departments of Social Services. Each county Department of Social Services will be part of a region of counties, and state-level DSS staff will monitor and support these regions. Regionalization means that the State will provide regional supervision and support to the counties, which will continue to locally administer social services. This approach does not supplant, abridge, or in any other way change the traditional role of the counties in administering social services.

Among other important changes, Rylan’s Law requires all 100 county departments of social services to enter into an annual performance agreement with DHHS for all social services programs, excluding Medicaid. The agreement contains performance requirements and administrative responsibilities that were developed in consultation with county departments of social services. Ultimately, a data dashboard will be available to the public, so counties and citizens can easily access program data and performance.

Included in the performance metrics are goals for the Work First program. The goals and performance measures established below will reinforce efforts to improve the work participation performance for North Carolina’s Work First program. There are four performance measures for North Carolina’s Work First program by which county departments of social services/agencies will be measured for compliance, pursuant to Rylan’s Law:

1. Meeting Federal Work Participation Rates for All Families. Counties must ensure that at least 50% of all Work Eligible Individuals, as defined by federal rule, complete the required number of hours of federally countable work activities.

2. Meeting Federal Work Participation Rates for Two-Parent Families. Counties must ensure that at least 90% of all two-parent families with Work Eligible Individuals, as defined by federal rule, complete the required number of hours of federally countable work activities.

3. Work First Applications Counties will process 95% Work First applications within 45 days of receipt.

4. Work First Recertifications Counties will process 95% Work First recertifications no later than the last day of the current recertification period.

Rylan’s Law provides North Carolina with a blueprint for collectively transforming North Carolina’s social services system and speaks to the systemic changes that are needed to improve outcomes for families and children served by social services programs statewide. This reorganization includes our shifting from the current central state- supervised locally administered system structure to a model of regional supervision which provides better support, technical assistance, and compliance monitoring of social services programs and services.

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9

PROGRAM ADMINISTRATION

All services and benefits provided under the Work First program are delivered locally by county departments of social services/agencies in each of North Carolina’s 100 counties. While electing counties have the option to offer alternative delivery options through community services providers, the county department of social services remains ultimately responsible for service delivery.

The state office is responsible for monitoring for program compliance with state and federal laws and policies. The TANF State Plan has been reviewed and informed by stakeholders from a variety of state agencies and community partners to ensure compliance with State and Federal law and the goals of the Work First program. Agencies and state partners include: The Attorney General’s Office, Department of Health and Human Services (Division of Vocational Rehabilitation, Division of Child Development and Early Education, Division of Mental Health/Developmental Disabilities and Substance Use Services, North Carolina Families Accessing Services Through Technology (NC FAST), Child Support Services, Child Welfare, Fiscal Compliance Monitors, Office of Economic Opportunity, and Performance Management, and Workforce Innovation and Opportunity Act (WIOA) funded agencies).

Electing counties developed a county Work First block grant plan, including descriptions of strategies to achieve the measurable statewide outcome goals and performance measures as described in this plan. Electing county plans must involve a broad range of public, private, and nonprofit groups. Triennially, each Electing County must submit to the Department of Health and Human Services a local block grant plan that describes its proposal for the following:

• Work First Employment Services Program, • Eligibility criteria for Work First cash assistance and other Work First Services, • Emergency Assistance Program, • Benefit Diversion Program (Optional), • Provision of Work First Services to low-income families, • Provision of Work First Services to former Work First recipients (Optional), and • Provision of Work First Services to non-custodial parents of Work First children (Optional).

Electing Counties shall give the public an opportunity to review and comment on their local block grant plans before submitting to the department. The county board of commissioners must appoint a committee of individuals to identify the needs of the population to be served and to review and assist in developing the county block grant plan in response to the needs. Membership of the committee must include but is not limited to representatives of the county board of social services, the board of the Local Management Entity/Managed Care Organization (LME-MCO) for Mental Health, Developmental Disabilities and Substance Abuse Services, the local public health board, the local school systems, the business community, the board of county commissioners and community-based organizations that are representative of the population to be served. In addition, faith-based organizations, service recipients, and other non-profits

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10 with experience in serving the population should be included. The department provides to all counties a model for use in developing an electing county plan.

The electing county block grant plan should include public and private resources that will help families move to self-sufficiency and should describe how services, such as child care, transportation, housing, and skills training will be used. The plan must include the county’s priorities for serving families who need child care, based on the needs of the community and the availability of services and funding. Following review by the county social services board and other parties, the county commissioners must approve the county block grant plan before it is submitted to the department.

Standard Work First counties must have the current information and/or detailed policy criteria on the below items placed on file at the county department/agency of Social Services by the beginning of each State Fiscal Year (SFY) for Work First program compliance:

A Memorandum of Agreement (MOA), contract, or protocol for collaboration with the below agencies: • Workforce Solutions Division – NCWorks Career Centers • Domestic Violence Agency • Local Management Entity – Manage Care Organization • Vocational Rehabilitation

Local policy for the following services (guidelines specified, payment limits, etc.) • Benefit Diversion Survey for current SFY • Emergency Assistance • Exemption from the work requirement for single parents of children under age one • Services for low-income families at or below 200% or 150% of the Federal Poverty Level • Services for non-custodial parents (service optional) • Transportation

Electing Counties and Standard Counties have the same level of flexibility in designing their employment services programs to meet the federal participation rates and statewide Work First goals while addressing local circumstances. However, Electing Counties also have the opportunity to establish their own eligibility criteria and benefit levels.

In November 2017, seven (7) counties notified the Department of their desire to be designated as Electing Counties. The Department of Health and Human Services, Division of Social Services, recommends that the following counties be designated as Electing Counties for the next three-year cycle: Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and Wilson.

The Department has the responsibility to ensure that the Work First program in all counties complies with Federal and State law and the Work First goals. Under State Law, Electing Counties’ caseloads combined cannot exceed 15.5% of the Work First caseload on September 1 of each year.

Representatives from the following agencies of state government reviewed all the

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11 Electing County plans: Attorney General’s Office, Child Support Services, Child Welfare Services, Division of Social Services, Fiscal Compliance Monitors, Local Business Liaison Representatives, Office of Economic Opportunity, DHHS Operational Support Team, NC FAST Representatives, and Performance Management.

The caseloads of the counties requesting Electing status, in aggregate, are well below the 15.5% minimum, it was not necessary to rank the plans. The plans for Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and Wilson will comply with applicable laws, rules, and regulations. All counties will be recommended to the General Assembly to be approved as an Electing County.

State law (NCGS 108A-27(e)) requires a county that desires to be re-designated to submit a request in writing to the Department at least six months prior to the effective date of the next State Plan. Funding for all counties is specified in the State law. For Electing Counties, block grants are based on the percentage of each county’s total AFDC and JOBS expenditures to statewide actual expenditures in 1995-96. For Work First cash assistance, the resulting percentage is applied to the total budgeted funds for Work First cash assistance for each year. Electing Counties’ eligibility criteria and processes are described In Appendix A. Many Electing Counties chose to follow some of the Standard County rules. When and if Electing County rules change to be the same as those of Standard Counties, no State Plan amendment will be submitted. If changes other than to conform to Standard County rules are made, an amended State Plan will be submitted. The responsibilities of the recipient and the county are outlined in a Mutual Responsibility Agreement (MRA-B)/Outcome Plan. The MRA/Outcome plan describes steps the family will take to become self-sufficient and the supportive services the county will provide.

Standard counties maintain required protocols and policies for services on file at the local county department of social services/agencies for State Fiscal Year (SFY) monitoring. All counties (Standard and Electing) are monitored to ensure compliance with program requirements.

North Carolina Department of Health and Human Services, Division of Social Services has a Memorandum of Agreement (MOA) with the North Carolina Department of Commerce, Division of Workforce Solutions (DWS), Division of Mental Health, Developmental Disabilities and Substance Abuse Services (DMH/DD/SAS), and the Division of Vocational Rehabilitation Services (DVRS). These agreements outline the services that will be provided by each agency to ensure that the needs of Work First participants are met.

The Division requires the local county departments of social services/agencies to collaborate and coordinate services with the local NCWorks Career Centers, the Division of Vocational Rehabilitation, area mental health providers, the Department of Public Instruction and the Head Start State Collaboration Office to provide services to assist Work First participants in obtaining employment and moving towards self-sufficiency. The Department encourages counties to partner with local resources and community agencies to assist Work First participants.

WORK FIRST ELIGIBILITY CRITERIA (UNLESS OTHERWISE NOTED)

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12 Receipt of Work First is based on both non-financial and financial criteria. Electing Counties will follow Standard Counties Work First Policy, except as indicated in the county specific plan.

NON-FINANCIAL ELIGIBILITY RULES

In addition to signing the MRA/Outcome Plan and work requirements, families must meet certain eligibility rules to receive Work First cash assistance. The basic eligibility rules are described below.

1. Children must be age 17 or younger at application. Children may receive through the month that they turn 18. Children aged 18 if in high school and expected to graduate by the month of their 19th birthday, can receive through the month they graduate from high school. Emancipated minor parents are considered adults and treated as such for Work First.

2. Children and adults who receive Social Security Income (SSI) are not included as recipients in the Work First cash assistance case. If a parent is applying for Work First cash assistance, they only have one child, and that child receives SSI or adoption assistance, the parent may receive assistance with a payment for one person.

3. Parents, including biological, adoptive, or stepparents, must be included with their child(ren) in the Work First cash assistance case. All siblings, stepsiblings and half siblings living together must also be included in the case. Note: Siblings can be separated for non-parent caregiver applications. If kinship cannot be established for one child to the case head, the case head can receive assistance for the children for which kinship can be verified. This exception ONLY applies to non-parent care givers.

4. If both biological parents and adoptive parents are living in the same residence with a child, the adoptive parents must apply and be included, but the biological parents may not. Ineligible parents, such as undocumented immigrants, living in the home cannot be included in the Work First cash assistance case.

5. If the child’s parent and an individual who has legal custody or guardianship reside in the home with the child, only the individual who has day-to-day care of the child may apply for and receive Work First cash assistance for that child. The child’s parent is included in the case, and child support must be pursued. The parent’s income must be counted in this case. The parent must sign an MRA-B/Outcome Plan and is expected to complete the work participation requirements unless the parent meets one of the exemptions from the definition of Work Eligible Individuals.

6. Children for whom Foster Care and/or Adoption Assistance payments are being made are not included as recipients.

7. Certain relatives, or a person with legal custody or legal guardianship, may apply for assistance for a child but may not be included in the payment.

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13 These cases are child-only cases. The following relatives qualify to apply for a child:

• a blood or half-blood relative or adoptive relative limited to: brother, sister, grandparent, great-grandparent, great-great-grandparent, uncle or aunt, great-uncle or aunt, great-great-uncle or aunt, nephew, niece, first cousin, and spouses of anyone listed above even after the marriage has been terminated by death or divorce; and

8. An adult or child cannot receive TANF Assistance in more than one case in North Carolina or any other state for the same month.

9. An individual can be the payee for one Work First cash assistance case at a time.

10. Undocumented immigrants are not eligible to receive Work First. North Carolina elects to aid all optional non-citizen populations allowable under federal law.

11. A family cap on assistance is in effect. This means a family’s Work First cash assistance payment will not increase when a child is born ten (10) months after a month in which a parent received Work First cash assistance. There are some exceptions to the family cap rule, as follows:

• A child who is the firstborn (including all children of a multiple birth) of a minor who is a dependent child. • A child who is conceived as a result of verifiable rape, sexual assault, or incest. • A child for whom parental custody has been legally transferred to someone other than the parent. • A child no longer able to live with their parent due to the parent’s death, the parent’s incapacity or disability, or the parent’s incarceration or institutionalization if expected to last at least three months. • A child who is the only child in the family unit.

12. Minor parents (under age 18), unless emancipated, must meet special requirements:

• They must stay in school to complete their high school education, or its equivalent. When a minor parent has not completed high school or has not received a GED, or is suspended or expelled from school, the minor parent must participate in an appropriate educational, training, or other work activity. • They must live with a parent or in another adult-supervised setting approved by the county director or the director’s designee. Payments will be made to an adult as a substitute payee, and not to the minor parent.

13. There is a five-year, lifetime limit on receipt of federal TANF assistance. Unless a hardship exemption is granted, a family is not eligible for Work First cash assistance if it contains an adult who has received Work First cash

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14 assistance in North Carolina and/or TANF assistance from another state for 60 cumulative months. The five-year lifetime time limit began in North Carolina on January 1, 1997.

A family may request a hardship exemption if the 60-month time limit has been exhausted. The county social services governing board, or its designee, will determine if an exemption will be granted based on guidelines established by the department. The board or its designee must determine that:

• Both the family and the agency have made good faith efforts to resolve the problems causing the hardship during the 60 months of receipt of Work First cash assistance. • Whether the participant is experiencing hardship as defined in the Work First Manual. Such hardships include, but are not limited to, situations where a family member has been battered or subjected to extreme cruelty, where the family is dealing with a severe illness of children or parents, or where there is a combination of factors that together constitute a hardship. • Whether the hardship condition is severe enough to prevent the parent from working on a regular basis.

Adults included in cases that have been granted hardship exemptions are expected to have an MRA-B Plan of Action/Outcome Plan in place that addresses each identified hardship criterion. Families are expected to work toward resolution of the problems as appropriate. Counties are expected to continue to provide necessary services to enable the family to work towards resolution of these issues. Exemptions can be granted for one to six months. At the end of the exemption period, the family may request another exemption.

Good cause considerations include, but are not limited to:

• A significant family crisis or change. • Illness of the caretaker or child, including participation in substance abuse treatment or medical appointment. • Civil leave, including jury duty, or a required court appearance. • A significant change in the participant’s work schedule by the employer. • Disruption in child care arrangements. • Loss of transportation.

14. There is a state 60-month lifetime limit of assistance in North Carolina, for custodial parents who receive Work First Family Assistance for their children. Parents who receive Supplemental Security Income (SSI) are excluded from this policy.

15. In addition to the five-year federal lifetime limit, families who are active in North Carolina’s Work First Employment Services are limited to 24 cumulative months of cash assistance, unless an extension as described below is granted. Families may re-apply for Work First after being off assistance for 36 months. All counties are required to review all Work First cases no later than three months prior to the end of the 24-month time limit.

The review is to:

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• Ensure that time limits have been tracked correctly; • Ensure the family is informed about other services; • Provide an extension if the family qualifies; and • Review the family status and assist them in identifying resources and support they need to maintain employment and family stability.

Up to 20% of Work First recipients may be enrolled, at least part-time, in a post- secondary education program. Recipients who are enrolled at least part time and who maintain a 2.5 grade point average (or its equivalent) shall have their two-year time limit suspended for up to three years.

Families may request an extension of the 24-month time limit at the end of the 24-month period or anytime following termination, including any time within the 36-month period of ineligibility. An extension may be requested verbally or in writing.

The county Board of Social Services, or their designee, will consider and decide on whether an extension will be granted. The board or its designee must determine:

• If the Work First participant substantially complied with the MRA-B/Outcome Plan, including considerations for any good cause exceptions. • If the Work First participant, through no fault of his own, is unable to obtain or maintain employment that provides a basic level of subsistence. To determine this, the Board or its designee will compare the family’s net monthly income to the maximum Work First payment for the family size. If the net monthly income is equal to the maximum Work First payment or greater, the family cannot receive an extension. • If the participant is experiencing extenuating circumstances.

If an extension is granted, the Board or its designee must determine the length of the extension. Each extension must be a minimum of 1 month to a maximum of 6 months with no limit on the number of extensions (within the 60-month lifetime limit).

16. All Work First applicants (i.e., every member of a case) must have a social security number or apply for a social security number if they do not have one. Unless an individual has a social security, number or applies for one, that individual is not eligible for Work First.

17. Individuals who are temporarily absent from the home for fewer than 90 consecutive days may continue to be eligible for Work First. Individuals who are absent from the home for more than 90 consecutive days but fewer than 12 months may continue to be eligible for Work First, if they have good cause for the absence. Good cause includes absences for medical treatment, substance use treatment, and health care. For children, good cause also includes absences for educational requirements.

18. An adult must report to the case manager when a child is expected to be absent from the home for 90 consecutive days or longer. The adult must report the child’s absence within five days of knowing the absence would exceed 90 consecutive

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16 days. Failure to report the absence within five days makes the adult ineligible for three months beginning the month after failing to make the report.

19. An individual who is convicted of misrepresenting their residence to receive Work First, Medicaid, SSI, or Food and Nutrition Services (FNS) in more than one state or more than one location in North Carolina is ineligible for Work First cash assistance for ten years beginning on the date of conviction.

20. Incarcerated or institutionalized individuals are not eligible for Work First cash assistance.

21. A family must apply for Work First cash assistance in the county of their residence. However, if the recipient moves to another county, the Work First case will transfer to the new county of residence.

22. Work First cash assistance payment received solely because the timely notice (10- day notice) requirement prevents appropriate action to reduce or stop benefits is not considered an overpayment and does not have to be repaid.

23. Individuals who have been convicted of a Class H or I controlled substance felony in North Carolina may receive Work First cash assistance, or other services under the following conditions:

• The individual may be eligible six months after release from custody; or • Six months after the date of conviction if the individual was never committed to custody; • And if there is no additional controlled substance felony offense during that time; • And the individual completes or continues appropriate substance use treatment as determined by the Local Management Entity. Individuals receiving Work First under these conditions are required to undergo substance use treatment as a condition of eligibility.

24. Families must legally reside in the state to receive assistance. Families that have moved to North Carolina after receiving cash assistance in another state will not be treated differently from current residents.

25. Work First cash assistance overpayments are recovered from the family, as allowed under state law or rule. This includes fraud, intentional program violations, and inadvertent errors by the family.

26. For Work First cash assistance cases, all changes are required to be reported by the family to the county within 10 calendar days of the date the change becomes known. This includes changes in income. All changes must be processed by the county within 30 calendar days of the report.

27. The certification period for Work First Services for families with income at or below 200 percent of the federal poverty level may be for a period of up to twelve months. Once certified, a family’s eligibility does not need to be reviewed until the certification period ends.

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17 28. All applicants and recipients for Work First must provide verification of citizenship, qualified immigrant status, and identity.

29. Any family that includes an adult who has quit a job without good cause, or has been fired from a job with cause, is ineligible for Work First payments the month of the job quit or firing and the two months immediately following.

30. The following applicants/recipients are subject to the substance use screening and testing requirement: single parents (biological, adoptive and step); both parents (biological, adoptive and step) of a two parent household; emancipated teen parent, as defined by Work First Manual Section 109, Age Rule for Children; any parent being added to an existing Work First case; parents who have been disqualified due to an Intentional Program Violation (IPV); parents who are ineligible due to fleeing felon and/or parole/probation violator status; parents with a Class H or I controlled substance felony conviction in North Carolina; and custodial parents who receive Work First Family Assistance for their children.

The substance use screening and testing requirement does not apply to: child only cases with a non-parent caretaker as the case head; dependent children; or Supplemental Security Income (SSI) recipients.

FINANCIAL RULES

1. Resources that can be readily converted to cash will be counted toward a $3,000 limit. “Readily converted” means the asset can be converted to cash within 5 business days.

2. All vehicles are excluded.

3. To calculate the payment, all income of Work First recipients is counted, except the earnings of children, and the income of SSI recipients, Foster Care Assistance, Adoption Assistance, and the Earned Income Tax Credit, unless other law or regulation excludes an income type.

4. Countable income of all family members included in the case is counted. Income of parents who live in the household and are excluded from the case is counted as if they are included in the case. The exception is that no income of SSI recipients is counted.

5. For unearned income, the actual amount received is the amount counted in calculation of the payment.

6. For earned income, percentages are subtracted from the total monthly gross income as follows: 27.5% of gross earned income is excluded.

7. Job bonus is awarded to parents with new earnings for a maximum of or up to 3 months. • The job bonus is offered to participants whose earned income terminates them from Work First cash assistance. • The job bonus applies to new earned income that begins after the application is approved for Work First. The job bonus is applied for

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18 employment that is expected to be permanent and income terminates a participant from Work First cash assistance. • The job bonus can be applied once in a lifetime for each Work First family who becomes employed.

8. The Work First monthly payment is 50% of the difference between the total countable income and the need standard.

The need standard is based on the number of eligible family members:

Number on Work First 1 2 3 4 5 6 7 8 Need Standard $362 $472 $544 $594 $648 $698 $746 $772 Number on Work First 9 10 11 12 13 14 Each additional Need Standard $812 $860 $896 $946 $992 $1,042 Add $50

• A family remains eligible if the result of the payment calculation is twenty- five dollars ($25.00) or more. Payments, including prorated payments for the month of application or termination, will not be made for less than twenty-five dollars. • For the month of application, Work First payments are prorated from the date of application with the date of application being day one. Otherwise, payments are made for the full month.

9. Proceeds from non-recurring lump sum payments are counted as a resource beginning the month after the month of receipt for ongoing cases. For pending applications, the non-recurring lump sum payment is counted as income in the month of receipt and as a resource beginning the month after the month of receipt.

10. When an adult Work First recipient or applicant is potentially eligible for other government benefits, such as Unemployment Insurance Benefits, the adult is required to apply for those benefits. If the adult fails to apply by the deadline established by the county or the adult refuses to apply, the family is not eligible for Work First.

11. Certain families, as defined in the Work First Manual, may be required to report income, participation hours, and other information to their county department of social services/agencies. Failure to submit a timely report results in termination of Work First assistance. The reporting process will be defined in the Work First Manual.

APPLICATION PROCESS

County departments of social services/agencies are responsible for developing a benefit package as quickly as possible to help families move toward self-sufficiency. As appropriate, counties should offer families other services to enable them to remain off Work First cash assistance. Such services include Diversion Assistance (Benefit Diversion or Emergency Assistance), child support services, child care, and job placement services. Diversion Assistance must be based on a family’s specific crisis or episode of need and may not be used for ongoing or recurrent needs.

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The time limit for processing applications for Work First cash assistance is 45 days. It is expected that most applications will be processed well within this time limit. In general, it is the applicant’s responsibility to provide all the information, including verifications, needed to determine eligibility. Applicants may request assistance in obtaining information. The agency’s obligation to assist the applicant is described in the Work First Policy Manual.

Applications may be denied within the 45-day processing period for any of the following reasons:

• The applicant fails to provide information needed to determine eligibility. • The applicant refuses or fails to apply for unemployment benefits, when monetarily eligible, or refuses or fails to apply for other benefits, such as Social Security or veteran’s benefits, for which he/she may be eligible. • The agency is unable to locate the applicant. • The applicant refuses or fails to apply for a required family member. • The applicant refuses or fails to sign an MRA/Outcome Plan (either Core Requirements or Plan of Action/Outcome Plan, if required). • The applicant fails, without good cause, to keep an appointment and has not contacted the agency concerning his/her application. • Ineligibility has been verified including situations in which the applicant’s statement results in ineligibility.

For any action or verification of information required of applicants, county departments will not deny an application without giving the applicant a written request for the action or verification, specifying a deadline that allows at least 10 calendar days in which to meet the requirement. The county must provide appropriate accommodations to assist applicants with limited language proficiency or disability in obtaining needed documentation.

Counties will not deny applications for the above reasons if good cause exists. Good cause is defined as:

• A significant family crisis or change including, but not limited to, the death of a spouse, parent, or child. • Illness of the caretaker or child, including participation in substance abuse treatment or attendance at a medical appointment. • Civil leave, including jury duty, or a required court appearance. • Lack of child care for parent and/or a minor parent in school, training, or other work activity. • Any other reason determined by the county director or his or her designee.

An application for Work First cash assistance is valid for a 45-day period. If the application is denied before the 45th day, eligibility for Work First cash assistance can be established at any time within the 45-day period without requiring a new interview, assessment or Documentation Workbook. This is dependent on the county worker having all information and documentation required to make the eligibility determination with the 45-day period.

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ELIGIBILITY REVIEWS

Frequent contact with Work First families is critical in ensuring their success at moving to employment. Counties are strongly encouraged to review a family’s progress on the terms of the MRA Plan of Action/Outcome Plan at least every three months. Families that do not participate in or allow the county to complete the periodic review will lose their Work First payment for at least one month. The family may re-apply for Work First, but eligibility can begin no earlier than the first of the month following the month of ineligibility. A face-to-face interview must be conducted, and eligibility re-determined at a minimum of every 12 months.

The Work First worker must provide or arrange for appropriate accommodations for families with limited English proficiency or with disabilities to ensure reviews are conducted as scheduled.

CHILD-ONLY CASES

In alignment with North Carolina’s 2019-2024 Child and Family Services Plan (CFSP), strategic priorities include ensuring safety, permanency and well-being needs are met for all children involved with child welfare services. This includes providing support to meet the diverse needs of relatives and kin who are caring for children in the child welfare system. Namely, by 2024, NC’s CFSP aims to decrease the number of days it takes a child to exit foster care and increase the rate of permanent exits (reunification, adoption, guardianship, custody).1 This goal reflects certain requirements identified in Rylan’s Law, as well as the Family First Prevention Services Act which has an increased focused on family-based placements and supports for kinship caregivers. County departments of social services/agencies are encouraged to provide family enrichment services to child- only cases and to conduct home visits. Children in child-only cases are likely to be “known” to the child welfare system. Often the child resides with a relative or kin rather than in the foster care system.

In terms of eligibility, child-only cases must be reviewed within six (6) months after the application has been approved and at least every 12 months thereafter. All reviews require a face-to-face interview. Counties must evaluate and determine whether additional contact is needed for individual families. In child-only cases there are several provisions that makes a family non-compliant. Some of these provisions include but are not limited to:

1) Child support non-cooperation, 2) Sanctions for failure to meet MRA provisions (child only); • Failure to have children who receive assistance appropriately immunized and required Health Checks and; • Failure to ensure children who receive assistance stay in school.

1 Also aligns with North Carolina’s Early Childhood Action Plan (ECAP) which outlines a cohesive vision, sets benchmarks for impact by the year 2025, and establishes shared stakeholder accountability to achieve statewide goals for young children from birth through age 8. Visit here for more information: https://www.ncdhhs.gov/about/department-initiatives/early-childhood/early-childhood-action-plan

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21 • Failure to report changes in situation within ten days of knowing of the change; such as income and family composition, that affects the payment; • Failure to keep all scheduled appointments with the Work First case worker • Failure to obtain immunizations and regular medical exams for children receiving WFFA; • Failure to report information, • Failure to comply with the Minor Parent Rules, which requires the Minor Parent to be enrolled in and regularly attend school and live with their parent, legal guardian, or other appropriate adult; 3) Failure to complete review or complete timely without good cause reasons

If the caretaker fails to provide appropriate care for the child, the case manager must evaluate the living arrangement. The purpose of the evaluation is to help determine if there are additional services needed by the caretaker to ensure compliance in the future. The goal is to keep the child in a safe and stable environment.

BENEFIT DIVERSION

Benefit Diversion is a cash payment alternative to traditional Work First cash assistance. Work First offers some families Benefit Diversion in lieu of Work First cash assistance. It is an optional service that counties may offer; the cadre of services that may be provided include:

• A one-time payment of up to a maximum of three months of Work First cash assistance benefits; • Medicaid may be provided with the use of county MOE funds for the months in the Benefit Diversion period; and • Referrals to child support, child care assistance, and other community and agency resources.

Benefit Diversion is defined as nonrecurring short-term benefits that must meet the following criteria to be excluded as assistance:

• 1. Designed to deal with a specific crisis or episode of need; • 2. Not intended to meet recurrent or ongoing needs; and • 3. Will not extend beyond 3 months.

Benefit Diversion policy allows for:

• Families that receive Benefit Diversion do not have to repay the benefit amount received. • Benefit Diversion can be received only once in a 12-month period and is not subject to Work First time limits. • Recipients of Benefit Diversion are not required to participate in the Work First employment program. • Eligible families are not considered Work First recipients and are not considered in calculating the State’s participation rate.

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22 • Families who have exhausted any Work First time limits are eligible for Benefit Diversion, provided all other eligibility criteria are met.

To be eligible for Benefit Diversion, families must meet the following eligibility requirements that apply to Work First:

1. Who may apply and be included in the family unit; 2. Income guidelines; 3. Resource limit; 4. Minor parent rules; 5. State/county residence; 6. Age rule for children; 7. Rule to have or apply for a Social Security Number; 8. Citizenship/immigrant status; 9. Identity requirements; and 10. Kinship/living with rule.

No other Work First eligibility requirements apply to Benefit Diversion cases.

WORK FIRST BENEFITS PAYMENT POLICIES

All families with a parent included in the assistance payment are subject to the “Work First Benefits” payment process. A caretaker child-only case will receive their assistance payment at the beginning of the month.

Payments to families in Work First Benefits work eligible status are paid after performance. Assistance payments are received only after providing documentation showing they have complied with the requirements of their MRA-B/Outcome Plan including the Core Requirements and Plan of Action Requirements or show good cause for not complying.

When beneficiaries do not comply with their MRA-B/Outcome Plan during a month, their Work First cash assistance benefits will not be released for that month and they will not count in the Work Participation Rate. In addition, the month with no Work First Benefits will not count against the participant’s 24-or 60- month time limits. If the parent has good cause for failing to meet their required hours of work activities or for not complying with other MRA-B/Outcome Plan requirements, their Work First cash assistance benefits will be released. Good cause is defined as:

• A significant family crisis or change; • Illness of the caretaker or child, including participation in substance abuse treatment or medical appointment; • Civil leave, including jury duty, or a required court appearance. • A significant change in the participant’s work schedule by the employer. • Disruption in child care arrangements. • Loss of transportation.

If a participant fails to meet their required hours of work activities or other MRA-B requirements, without good cause, the MRA-B/Outcome Plan serves as notification that their Work First case will be terminated. An adequate notice (DSS-8110-Notice-of-

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23 Modification-Termination-or-Continuation-of-Public-Assistance), outlining the participant’s rights to a hearing, is required to be sent to all households prior to termination of their case. When a case terminates, due to failure to comply with MRA-B requirements, it then becomes “Non-Public Assistance” for child support purposes, and the caretaker is eligible to receive child support payments processed through Child Support Enforcement. For this reason, case manager are directed to promptly terminate cases when a Work First benefit payment is not issued. The child support payment for the following month (if they have one) will be sent directly to the recipient. The family will have to reapply for Work First following termination for failure to meet their required hours of work activities or other MRA-B requirements. The family is eligible for any child support payment in a month a TANF benefit was not received.

ELECTRONIC FUNDS TRANSFER (EFT)

All Work First cash assistance payments are issued by electronic funds transfer (EFT). The two methods of issuance are direct deposit to a financial institution or electronic benefit transfer (EBT) card.

Direct deposit allows for the monthly Work First cash assistance payment to be electronically deposited to a personal savings or checking account of the case head. There may be fees associated with direct deposit that are imposed by the financial institution. These fees are the responsibility of the recipient. The financial institution cannot impose charges for an account that it does not impose on its other customers for that same type of account. EBT is an electronic system that allows recipients to access their benefits with a plastic card, similar to a bank card. Work First households will receive the initial EBT card at no cost. If the family receives Food and Nutrition Services (FNS) benefits, the Work First payment may be issued on the same card. The first cash withdrawal transaction at an Automated Teller Machine (ATM) is free. There are not any fees for point-of-sale (POS) transactions. Work First households that request a replacement EBT card shall be assessed a $2.50 fee. The fee shall be deducted from the account of the Work First household. The fee shall be refunded if the EBT card:

a) was lost in the mail or damaged by the vendor prior to receipt by the Work First household, b) is being replaced due to a name change on card, c) was lost due to a natural disaster such as a fire, flood, tornado or hurricane d) was damaged by a retailer or vendor. Fees associated with the use of the EBT card will be deducted from the balance of the card based on the available benefits in the account. If the recipient is receiving FNS benefits and Work First, the $2.50 card replacement fee will be deducted from the FNS allotment first. If there are not sufficient funds in the FNS EBT account or the recipient does not receive FNS, the replacement card fee will be deducted from the program account with funds available to cover the fee. If there are not sufficient funds in any single account, the EBT system will issue the card and deduct the funds at the next benefit issuance.

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24 Federal law prohibits Work First recipients from using EBT cards “in any liquor store, any casino or gambling establishment, or retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for establishment.” Recipients’ Work First cash assistance payments may be terminated if used at restricted locations. ELECTRONIC BENEFIT TRANSFER (EBT) MONITORING

The Division implemented compliance measures to monitor usage and impose penalties when it is determined there is EBT misuse.

Monitoring includes reviewing selected cases to ensure that purchases/transactions were not made at any restricted locations: casinos, gambling casinos or gaming establishments, or any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment.

The Division submits an annual EBT Monitoring Report to the Administration for Children and Families (ACF) providing data captured from EBT monitoring.

SANCTIONS

Work First participants may be sanctioned for non-compliance with program requirements. There are four types of sanctions that are imposed when participants fail to comply with program requirements:

1. Non-cooperation with Child Support Services

When a parent or other adult caretaker fails, without good cause, to cooperate with Child Support Services, the entire family will be ineligible for a Work First cash assistance payment for one month or until compliance, whichever is later.

2. Substance Use Treatment

An applicant/recipient that fails to comply with substance use treatment recommendations is ineligible for Work First cash assistance. If the applicant/recipient is Work Eligible, they will continue to be Work Eligible and subject to Work First time clocks. The remaining household members can receive Work First cash assistance if otherwise eligible. The ineligible applicant/recipient’s income and resources are included when calculating the amount of the Work First cash assistance payment. However, the eligible household member’s cash payment amount will be recalculated, excluding the ineligible member from the payment amount.

The ineligible applicant/recipient remains ineligible for Work First cash assistance until he/she complies with treatment.

3. MRA/Outcome Plan Non-compliance

Failure to comply, without good cause, with the terms and conditions of the MRA/Outcome Plan will result in the entire family being ineligible for a Work First

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25 cash assistance payment for one month or until compliance, whichever is longer. The family remains eligible for Work First Services.

4. Intentional Program Violation (IPV)

Individuals found to have committed an intentional program violation are disqualified from Work First cash assistance for 12 months for the first offense, 24 months for the second offense, and permanently for the third. The individual continues to be included in the family and continues to be considered a Work First recipient for purposes of the work requirement and time limits. The family’s payment is recalculated with the individual excluded from the needs.

Families in sanction status will be apprised of available community resources, including assistance through the county department of social services.

All agency staff are trained in indicators of child abuse and neglect and are expected to make reports as appropriate.

A family may avoid an MRA/Outcome Plan sanction if good cause for non-compliance exists. Good cause is defined as:

• A significant family crisis or change; • Illness of the caretaker or child, including participation in substance abuse treatment or medical appointment, • Civil leave, including jury duty, or a required court appearance.

PERSONAL RESPONSIBILITIES AND WORK REQUIREMENTS

The Work First program is based on the premise that all parents have a responsibility to support themselves and their children. Under Work First, the Core Mutual Responsibility Agreement (MRA) outlines in detail the obligations of parents, relative caretakers, or legal guardians in return for family assistance. All counties require families to sign the Core Mutual Responsibility Agreement.

For this section, there is a distinction between the requirements for families that include a “work eligible individual” and those families that do not. Drug felons, fleeing felons, and Supplemental Security Income (SSI) representative/protective payees are not excluded from the definition of work eligible individuals. The following individuals are exempt from the work requirement:

1. Adults receiving Work First cash assistance for a child only. (The adult is not included in the case.) 2. A non-recipient relative, other than a parent, living with a child receiving assistance. 3. A non-qualified immigrant who is ineligible for Work First cash assistance or Work First Benefits due to immigration status. (Immigration status requires third party verification.) 4. A recipient of Supplemental Security Income (SSI.) 5. Single custodial parents with a child under 12 months of age.

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26 6. Individuals with “child” family status (youth up to age 18 and not an emancipated minor payee or age 18, if in high school and expected to graduate from high school by the month of their 19th birthday). Emancipation occurs when a dependent child marries, becomes a member of the U. S. Armed Forces, or is declared emancipated by a court. An emancipated minor parent is treated as an adult applicant to qualify for and receive Work First cash assistance for themselves and their child. 7. A parent providing care for a disabled family member living in the home. Medical documentation to support the need for the parent to remain in the home is required from the Health Care Professional responsible for the medical care of the disabled family member.

MUTUAL RESPONSIBILITY AGREEMENT (MRA)/ OUTCOME PLAN

The first part of the MRA/Core Requirements applies to all families and describes the parent’s or caretaker’s responsibilities. A family is not eligible for Work First cash assistance unless the parent(s) or caretaker(s) signs the Core MRA. All Agreements must include provisions that the person:

• Contact their Work First worker if a change occurs in their situation within ten (10) days of knowing of the change; • Keep all scheduled appointments with their Work First worker; • Cooperate with Child Support Services for all children who receive assistance; • Ensure that children who receive assistance get their immunizations and have regular checkups; and • Ensure that school-aged children and minor parents who receive assistance live at home and attend school according to school attendance policy. • Will not access the cash assistance on EBT card or use cash assistance in any liquor store, gambling or gaming establishment or any establishment that provides adult oriented entertainment. • Acknowledge if they do not meet the requirements listed on the Core MRA Requirements, their Work First payment will stop.

A notice of appeal rights is sent to participants who fail to comply with the MRA requirements. The second part of the MRA, The Plan of Action /Outcome Plan, is the Work Eligible parent’s plan to meet the work requirements. This part:

1. Establishes employment goals for the parent(s); 2. Describes a plan for participating in work or work-related activities and the hours required in each activity; and 3. Describes the case management and supportive services that will be provided to help the family successfully meet the requirements of the MRA and move towards self-sufficiency. Supportive services may include reasonable accommodations for individuals with disabilities and language assistance for LEP populations.

All MRA Plan of Actions/Outcome Plans must include provisions that the person:

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27 • Contact their Work First worker immediately if a change occurs that prevents them from completing the activities described on the MRA Plan of Action /Outcome Plan; • Accept and keep any reasonable job offered. The participant will not quit a job, refuse an offer of employment or fail to follow up on job referrals without good cause; • Submit verification of all activities completed each month by the fifth (5th) work day of the following month; and • Acknowledge that failure to meet the requirements listed on the MRA Plan of Action/Outcome Plan will result in termination of benefits.

A family whose parent refuses to sign the MRA Plan of Action/Outcome Plan without good cause, is ineligible for Work First cash assistance. The WF payment is not issued for the month of non-compliance, the case terminates, and the family may re-apply at any time but may not be approved until the month following the missed payment.

EMPLOYMENT ASSISTANCE FOR WORK ELIGIBLE INDIVIDUALS

The NC Department of Commerce, Workforce Solutions Division is the presumptive, primary deliverer of job placement services for the Work First program and a critical partner with the Department of Health and Human Services. The Division operates over 80 local agencies across the state called NCWorks Career Centers.

Registration for work with the NCWorks Career Center is a prerequisite to participation in the Job Search component of Work First. All work eligible participants who are assessed as ready to engage in job search are required to register for work with NCWorks Career Center. This requirement will be included on their MRA-B Plan of Action/Outcome Plan. Failure to register for work with the NCWorks Career Center will result in termination of Work First benefits.

Counties also may contract with the local NCWorks Career Centers for additional services such as job search, job placement, and referrals to community services. Modifications and/or accommodations may be necessary to assist individuals with registration and access to employment services.

WORK RESPONSIBILITIES

The State requires all Work First applicants to be assessed for employability at application for Work First cash assistance and again within three months of receiving assistance. If deemed work eligible, the Mutual Responsibility Agreement (MRA)-Plan of Action must be created and signed by the applicant within 5 days of the date of application. The MRA-Plan of action includes realistic and obtainable goals and activities that will enable the family to participate in federal countable work activities and become economically self-sufficient.

Single parents of children less than 12 months of age are excluded from the participation rate calculation; if they do not complete enough countable hours to be deemed engaged in work. This exclusion is for a cumulative total period of 12 months (lifetime exemption). In all counties, single parents with children under age six who demonstrate that

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28 necessary childcare is not available are not sanctioned. (See Child Care Section for required definitions.)

MRA-B Plans of Action/Outcome Plans are individualized based on an employability assessment. Often, a Plan of Action will reflect fewer hours per week of activities than required to meet the Work Participation Rate. This may be due to a shortage of appropriate activities, a shortage of necessary support services, or other personal limitations of the participant. County Work First staff are responsible for balancing these limitations against the expectation of full-time participation and the requirement to meet the participation rates. All work eligible individuals are expected to strive and make progress toward full time participation. County Work First plans require frequent review because some plans may be short-term. The MRA-B Plan of Action/Outcome Plan may be updated or re-negotiated as often as appropriate.

When a work eligible individual has completed his/her first twelve (12) weeks in the Work First Employment Services program and remains unemployed or continues to exhibit signs and symptoms of substance abuse, domestic violence, or other barriers to self- sufficiency, then a more structured assessment is administered. The strategies and work requirements may need to be refined as the family begins to assume increased responsibility for its future independence. At a minimum, the MRA Plan of Action should be updated every 12 weeks, although more frequent ongoing contact may be necessary, particularly for more challenging cases. If a participant does not have the skills or resources to accomplish completing a job application, researching job opportunities, demonstrating interview skills, or demonstrating appropriate interview demeanor, the case manager should refer the participant to community and agency resources.

Reassessment of cases is required three (3) or twelve (12) months prior to termination. Case managers are required to complete a full assessment on families within specified months on the time clock. This full assessment should include an offer for a voluntary screening for disabilities. It is critical that the case manager assists families in establishing realistic goals in the context of time limits, work requirements, and available resources. Special attention must be paid to cases on the 24-month time limit during months 12, 18 and 24.

In the 18th month of participation, all cases on the 24-month time limit must be given a full assessment. This full assessment should include an offer for a voluntary screening for disabilities. The assessment may help identify a disability (for example, when there is a pattern of non-participation, behavioral cues, low test scores or poor performance in school or work assignments). If the participant declines the voluntary screening, the case record is to be documented to reflect the declination. In the 21st month of Work First participation, an automated notice is produced informing the family that their Work First payment will soon terminate and notifying the family of their right to appeal or request an extension. The notice also informs participants of benefits for which they may be eligible after their time limit expires such as Benefit Diversion, 200% and Emergency Assistance.

The state allows for the discretion of stopping the 24-month time clock for participants who have physical, mental, or emotional barriers that make full-time work unrealistic. Though the timeclock may stop for such participants, they may continue working with Work First Employment Services. This encourages participants to work to the best of

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29 their ability while recognizing that limitations may make the 24-month time limit an unrealistic requirement.

Once Work First participants reach the 24-month timeclock limit a hardship extension can be granted if the county Social Services Director or its Designee determines that the participant, through no fault of their own, is unable to obtain or maintain employment that provides a net income of at least the State’s maximum Work First payment of the family size. In such a situation, the participant may be granted up to a six-month extension to continue receiving employment services. Limitations not of a medical nature, such as criminal background, lack of childcare, or the need to care for a medically exempt family member may receive an exemption if sound documentation can be provided to substantiate the exemption. Participants requesting such exemptions will continue to receive Employment Services to assist the family with becoming self-sufficient.

The Administration for Children and Families (ACF) was instructed by the Deficit Reduction Act of 2005 to provide states with specific definitions of federally countable work activities. In February 2008, the Final Rules were issued with the following work activities:

1. Unsubsidized employment 2. Subsidized employment 3. Job Search 4. Job Readiness 5. On-the-Job Training 6. Work Experience 7. Community Service 8. Vocational Educational Training 9. GED/HS Completion for Teen Heads of Households 10. Job Skills Training 11. Education Directly Related to Employment 12. Satisfactory attendance at secondary school or in a course of study leading to a GED

Optional items and information specific to North Carolina are discussed below.

1. Custom Work Activities - Additional work activities that do not meet the federal definitions are also supported. A worker and the family will use the results of the employability assessment to create the most likely and timely path to self- sufficiency.

2. Post-Secondary Education - Up to 20% of Work First recipients may be enrolled, at least part-time, in a post-secondary education program. In Standard Counties, recipients who are enrolled at least part time and who maintain a 2.5 grade point average (or its equivalent) shall have their two-year time limit suspended for up to three years.

WORK VERIFICATION REQUIREMENTS

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30 In compliance with the Deficit Reduction Act of 2005 and the subsequent Final Rule, the state of North Carolina’s Work Verification Plan was submitted and approved by ACF in September 2008 which includes the following:

1. Describes the services or programs the state includes under each work activity. (Services and programs must conform to the Federal definition of these activities.) 2. Describes how the State determines the number of countable hours of participation for each activity. 3. Describes how the state verifies the actual hours of participation for each activity, including the procedures for obtaining and maintaining documentation of hours of participation. 4. Describes the methods of daily supervision for each unpaid work activity.

All county departments of social services/agencies must adhere to the requirements as outlined in the State’s Work Verification Plan.

CHILD CARE DEFINITIONS

County departments of social services/agencies use the following guidelines to evaluate whether adequate child care is available for single parents with a child under age 6. At each occurrence of non-compliance with the work requirement for a single parent caring for a child under age 6, the county department of social services/agencies will document in the case record the reason for the parent’s non-compliance. If the parent states that he/she is unable to participate because needed child care is not available, the county department of social services/agencies will evaluate each of the following criteria and document their findings in the case record. If the county finds that the parent’s claim is valid, the sanction or loss of Work First benefits for non-compliance is not applied. Appropriate Child Care

• Care in a regulated child care center or family child care home that has a license, or • Care in a license exempt child care arrangement that meets the requirements of North Carolina’s Subsidized Child Care Program. • Child care options must have hours of operation which coincide with the work schedules of parents and meet any special needs of the individual children.

Reasonable Distance

• In evaluating “reasonable distance,” counties consider the total time it takes for parents to travel one-way from home to the child care provider, then to work or work-related activity. Because of the differences in North Carolina’s geography and highway/road systems, county departments of social services/agencies have maximum discretion to decide what is “reasonable” for individual families based on their resources (i.e. whether they have a vehicle in working order or families’ resources available for transporting the family) and local transportation considerations. • As a guideline, counties should consider that it might not be reasonable to require families receiving Work First to travel more than 80 minutes one-way to work and child care. Eighty minutes is approximately four times the average one-

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31 way commute time in North Carolina (not including stops at child care arrangements), based on data from the U.S. Census Bureau.

This does not preclude an exemption from the sanction or a loss of Work First benefits based on a shorter commute if the county considers the commute an obstacle to children’s healthy development or the family’s self-sufficiency goals.

Unsuitability of License Exempt Child Care

The unsuitability of a non-licensed child care arrangement is determined on a case-by- case basis. A license exempt child care provider may be considered “unsuitable” for a particular family if one of the following exists:

• The license exempt child care arrangement does not meet the requirements of North Carolina’s Subsidized Child Care Program to receive subsidy payment. • A parent does not want their child(ren) cared for by the non-licensed child care provider.

Affordable Child Care Arrangement

When a child care subsidy is available to the family, the child care is considered affordable. If the child care provider charges parents the difference in the subsidy payment rate and the private paying rate and the parent cannot afford to pay the difference, that care does not meet the definition of affordable.

HEAD START/EARLY EDUCATION

The DHHS/NC Division of Social Services continues to strengthen its’ partnership with the NC Head Start-State Office. The goal of this collaboration is to:

a) increase the number of referrals of families participating in the Work First program to Head Start or Early Head Start programs for enrollment; b) increase the number of referrals that Head Start or Early Head Start programs make to local department of social services agencies of families potentially eligible to receive Work First or other services; c) develop an effective system of communication and information-sharing between Head Start and local department of social services/agencies; and d) provide joint training opportunities for Head Start staff and Work First staff that have similar job functions.

EMERGENCY ASSISTANCE (ALL COUNTIES)

Counties must use their Work First block grant funds to provide emergency assistance to families. Counties must define the eligibility criteria, including who is eligible and the types of emergencies that will be covered. This assistance is designed to assist with families’ sporadic emergency needs, such as a utility cut-off or an eviction notice. Emergency assistance is not designed specifically to help families move to self- sufficiency, although, use of this assistance could help a family’s progress.

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32 Counties will comply with federal requirements. Emergency assistance does not trigger the 24 or 60-month time limit, nor will families receiving emergency assistance be required to participate in the Work First program. In addition, families who have exhausted their 24 or 60-month time limit are eligible for Emergency Assistance, provided all other eligibility criteria are met. These families are not included in calculating the State’s participation rates.

At a minimum, counties must define and describe in their Emergency Assistance plans the following guidelines:

• The family must have a child who lives with a parent, relative caregiver, or non- relative caregiver as defined in Work First policy, and who meets the age requirements for Work First. • Total income must be at or below 200% of the federal poverty level. • Family members must meet the same citizenship requirements and resource limits as for Work First. • Countable income is the same as for Work First.

DISASTER OR PUBLIC HEALTH DECLARATIONS (ALL COUNTIES)

When disaster or public health declarations are issued by the state and federal government, the state may implement additional provisions for the use of Federal TANF funds and State MOE funds when warranted due to the severity of a natural disaster or other emergency declaration. The state may expand services and broaden eligibility criteria for Work First Cash Assistance such as streamlining the application process, temporary suspension on; sanctions, terminations, Unemployment Insurance Benefits (UIB), and collection of Program Integrity claims, temporary pass through of child support payments, granting good cause for activities that cannot be reasonably performed, providing on-line approaches to participation, increasing cash benefit levels for TANF recipients, and providing non-recurrent short-term benefits for families that meet the 200% FPL.

During the COVID-19 public health emergency, the state streamlined the Work First Cash Assistance application process to expedite eligibility and payment determinations, by offering on-line or telephonic applications to minimize face-to-face contact. The mandatory face-to-face interviews for Work First applications, screenings and/or assessments were suspended, and interviews conducted by telephone. The Work First Cash Assistance Application and Review Documentation Workbook can be mailed to individuals who choose to apply for Work First Cash Assistance or short-term services and benefits. Upon receipt of the application workbook, case managers must conduct a telephone interview with the applicant to complete the NC FAST Intelligent Evidence Gathering (IEG). Families may also access the Work First Cash Assistance Application and Review Documentation Workbook via the Electronic Pre-Assessment Screening Service (ePASS) portal. Applicants must meet all eligibility requirements for ongoing Work First cash assistance or short-term benefits and services.

The state temporarily suspended Work First Cash Assistance terminations in relation to time clocks and paperwork or procedural requirements as well as sanctions related to non-cooperation with child support and/or failure to perform work requirements during the COVID-19 emergency declarations. Active Work First Cash Assistance cases will not

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33 be terminated due to exhaustion of state or federal time clocks or failure to comply with paperwork or procedural requirements if all other eligibility requirements are met. Suspension of all sanctions against individuals and families currently in sanction status due to non-compliance with child support enforcement and/or failure to meet the work requirements will allow these individuals to apply and receive benefits during the COVID- 19 emergency declaration. Suspended sanctions would include non-compliance with child support services (i.e. appearing for interviews, hearings, and legal proceedings; supplying information or documentation; and submitting to genetic testing), substance use treatment, MRA/Outcome Plan terms and conditions. Applicants and recipients with active Work First sanctions for failure to cooperate with child support and/or failure to meet the work requirements will be eligible to receive Work First Cash Assistance if all other eligibility requirements are met.

As a result of COVID-19, the United States Department of Agriculture (USDA) approved a waiver giving North Carolina approval to temporarily suspend collection of active Food and Nutrition Services (FNS) recoupments of overpayments, delay collection action on newly established FNS overpayments, and not consider payments on established FNS overpayments delayed due to this suspension to be delinquent, DHHS extended the waiver to include Work First Cash Assistance in a collaborative effort with FNS to streamline the functionality of the NC FAST case management system. If households choose to continue to make payments, the payment can be accepted and applied to their claim. Counties should inform households there is no penalty for not making payments. Although collection may be temporarily suspended during the COVID-19 emergency declaration, households will remain liable for their outstanding FNS and WF debts and the collection activity and delinquency determination will resume at the end of the waiver period.

Upon the state’s decision to disregard unemployment insurance benefits (UIB), counties must not count UIB income received when eligibility for the UIB is directly related to unemployment, job loss or other qualifying status as a result of the COVID-19 emergency declaration; however, all other unemployment compensation payments received which are unrelated to the COVID-19 emergency declaration continue to be a countable source of income for TANF eligibility and benefit calculations.

In lieu of counting child support as unearned income for dependent child(ren) included in the Work First Cash Assistance budget unit, the state may opt to implement a temporary pass through of child support payments received to current TANF families. A temporary pass through will allow families to receive 100% or a portion of child support recouped by the state to offset TANF payments issued to the family.

The temporary suspensions furthermore allow for good cause exemption for not meeting eligibility requirements that are not available or attainable due to the onset of a natural disaster or other emergency situations. Case managers are encouraged to provide case management by phone or other virtual/electronic communication platform. Counties should utilize online approaches for participants to engage in work activities virtually, such as online trainings, job search and work readiness to keep them engaged without needing to go to a training site. In the event the disaster or emergency declaration does not allow for the implementation of such approaches, a good cause exemption may be applied to participants for work requirements. The state will automatically release Work First Cash Assistance payments to individuals/families currently in the pay after performance status when conditions require a statewide good cause exemption.

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In response to the multiple needs of families during the COVID-19 emergency declaration, the state increased benefit levels for TANF recipients. The increased benefits are assistance provided as a one-time payment for each eligible child in an active Work First Cash Assistance household. Children not included in the active Work First Cash Assistance case and children receiving Social Security Insurance (SSI) are excluded from the benefit calculation. The one-time payment was issued in addition to the household’s regular on-going TANF payment to provide additional support to the families in purchasing food and other household needs. The state may also increase Federal Poverty Level (FPL) guidelines statewide to provide non-recurrent short-term benefits to families meeting the 200% FPL.

Counties received written guidance regarding which policies are implemented during the COVID-19 emergency declaration. All provisions implemented during the emergency declaration shall be effective through the end of the month following the month in which the emergency declaration is lifted by the Federal or State government.

APPEALS PROCESS

For Standard Counties, the North Carolina Department of Health and Human Services has set uniform policies for determining eligibility, providing benefits, and ensuring fair and equitable treatment. Applicants or recipients who choose to contest a decision adversely affecting their receipt of Work First cash assistance, or workers contending a breach of the non-displacement in work activity provision of federal law, may appeal in accordance with N.C.G.S. Sec. 108A-79 (N.C.G.S. 108A-79). Families are informed of their right to appeal and are provided with copies of Work First policy upon request. Electing Counties, as required by State law, have established a local appeals process that substantially complies with the appeals process outlined in N.C.G.S. Sec.108A-79 (N.C.G.S. 108A-79). For Electing Counties, all appeals for Work First are heard locally, not by the State Division of Social Services. Applicants and recipients with disabilities and language interpretation/translation needs are provided with reasonable accommodations and services to assist them in participating in the appeals process if requested.

WORK FIRST SERVICES

It is important that families receive the services needed to assist them in moving toward self-sufficiency. All counties have maximum flexibility in deciding how they utilize their block grant funds to provide services to enable families to become and remain self- sufficient. The flexibility available to county departments of social services/agencies make it impossible to outline all the services that may be provided. Families may be provided services that are not specifically prohibited by federal law or regulation. To the extent that Work First services are available, they may be provided to Work First recipients at any time to support the scheduled activities of the MRA-B/Outcome Plan. In addition, support and family enrichment services may be provided for families whose income does not exceed 200% of the federal poverty level. Work-related services may also be provided to non-custodial parents of Work First recipient children. The Electing County’s Work First Plan describes how they will provide services.

Serving Non-Custodial Parents (Optional in All Counties)

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Child support should be a primary income source for most Work First families and a way for former Work First families to remain off Work First. To enhance non-custodial parents’ ability to pay child support, North Carolina allows counties to provide work- related services for non-custodial parents of minor children who are Work First recipients. The non-custodial parent’s family income must be at or below 200% of the federal poverty level. The non-custodial parent is not considered a member of the custodial parents or caretaker’s family. In addition to the ability to provide work-related services, Work First staff are encouraged to work with their local Child Support Services Office and judicial system to have child support orders modified to require the non- custodial parent’s participation in employment activities, including registering for work in NCWorks online (http://www.ncworks.gov ).

Serving Low Income Families

All counties are to provide in their county plan a variety of services for families with income at or below 200% of the federal poverty level that have a child who meets the same requirements as Work First cash assistance or Work First services.

Counties describe in their county plans how they will provide such services and what types of services they will provide. Services may be varied, including but not limited to, transportation, child care, job retention bonuses, case management, follow-up services, mentoring programs, after-school learning programs, parenting programs, literacy programs, and post-employment skills training. Families who have exhausted their 24 or 60-month time limit are eligible for these services, provided all other eligibility criteria are met.

Child Care Services

Counties may provide subsidized child care services by their Work First Block Grant funds. To qualify, families must be eligible for Work First cash assistance or for Work First Services as described in this plan. The child care services provided must comply with subsidized child care policies administered by the Division of Child Development and Early Education (DCDEE). All parents receiving child care subsidies have access to provider ratings and referral information to assist them with evaluating their child care arrangement.

All parents who have countable income are required to pay a rate of 10% of their monthly income for the cost of child care in accordance with the fee schedules administered by DCDEE.

Transportation Services

Counties are encouraged to develop local partnerships with other human services agencies, transit systems, businesses, workforce development agencies, faith-based community, civic organizations, etc., to develop and expand alternative transportation resources to meet the community’s transportation needs. Issues such as communication, coordination, mutual trust and respect, policies, marketing, funding resources and cost sharing are all part of the discussion process.

Some counties have developed car ownership programs through partnerships with other

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36 organizations. Vehicles donated from private citizens, businesses, and/or local governments are given to select Work First families. There are many variations of car ownership programs operating in North Carolina. Most programs require that the Work First recipient pay at least a portion of the costs associated with liability insurance, repairs, taxes, and license and/or title fees. Some counties use Work First Block Grant Funds to purchase vehicles, make down payments, and assist with regular car payments or car repairs for Work First families.

ELDERCARE TRAINING

North Carolina is committed to strengthening support for an increasingly diverse aging population, along with their families and natural support systems. Workforce development and training, community education and engagement strategies will ensure such opportunities exist.

North Carolina ranks ninth nationwide in population of adults age 60 and older, and by 2025 one in five NC residents will be older than 65. Given the steady increase in the number of older adults in North Carolina, the Work First program will continue to provide assistance to work eligible individuals to train for, seek and maintain employment in the eldercare workforce. Work First Employment Services job skills training, work experience and employment retention services include training and employment for certified nursing assistants (CNAs), home health aides, and other occupations related to eldercare. In addition, case management services provide employment retention services for positions that include CNAs, home health aides and other occupations related to eldercare. Assistance may include tuition, payment of course fees, books, instructional materials, special equipment (i.e., lab coats, stethoscopes, etc.) and supportive services such as child care and transportation services.

Consistent with North Carolina’s 2019-2023 State Plan on Aging, the Division of Social Services will collaborate with the Division on Aging and Adult Services (DAAS) on eldercare issues and training needs. Local agencies are required to remain informed of local economic trends and provide employment services, including job skills training and job development, based on these trends.

HOMELESSNESS

Counties may use TANF and county funds to serve homeless families and families at risk of experiencing homelessness. These families must be TANF eligible or TANF recipients. The services provided may include but are not limited to: payments to cover basic needs, supportive services, and employment services. Counties may partner with local resources to coordinate and streamline services to prevent homelessness and promote self-sufficiency.

To better connect people with resources such as housing, and other basic needs, the Department recently launched NCCARE360, which is the first statewide coordinated care network to electronically connect those with identified needs to community resources and allow for a feedback loop on the outcome of that connection. The Department recognized that people face a fragmented system of health and human services that can be hard to navigate. Providers often operate in siloes, are disconnected and have no meaningful way of coordinating services for local residents. NCCARE360 is collaborative solution to this problem by providing a coordinated,

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37 community-oriented, person-centered approach to delivering care in North Carolina through a robust statewide resource directory that includes a call center with dedicated navigators, a data team verifying resources and text and chat capabilities. Other features include:

• A robust statewide resource directory powered by NC 211 that will include a call center with dedicated navigators, a data team verifying resources, and text and chat capabilities. • A community repository powered by Expound to integrate multiple resource directories across the state and allow data sharing. • A shared technology platform powered by Unite Us that enables health and human services providers to send and receive electronic referrals, seamlessly communicate in real-time, securely share client information, and track outcomes. • A community engagement team powered by Unite Us working with community- based organizations, social service agencies, health systems, independent providers, community members and more to create a statewide coordinated care network.

VOTER REGISTRATION

The purpose of the National Voter Registration Act (NVRA) is to make more opportunities available for people to vote. The NVRA requires individuals, who are U.S. citizens and at least 16 years of age, be offered the opportunity to register to vote or update a voter registration record at application, recertification or when reporting a change to their address.

The local county departments of social services/agencies must ensure voter registration forms are available to individuals during their visits. The voter registration questions are in the Work First Application Workbook (DSS-8228), Intelligent Evidence Gathering (IEG) and the one-page application in North Carolina’s Families Accessing Services through Technology (NC FAST).

These individuals must be given a voter registration application form during their visit or mailed a form if the contact was by telephone or email. If the individual asks for assistance in completing the voter registration form, the case manager or another designated agency staff must help. Staff are required to provide the same level of assistance in completion of voter registration forms as offered in the completion of other agency/program forms. The agency must coordinate with their local Board of Elections office to ensure the agency maintains sufficient North Carolina voter registration materials to comply with the NVRA.

Agency staff do not determine eligibility of any individual’s right to register to vote. The county Board of Elections office makes that determination. Agency staff informs the individual the Board of Elections processes voters registration applications. Applicant and recipient questions concerning voter registration must be directed to the local Board of Elections office.

Each applicant or recipient must be informed that registering to vote or declining to register to vote will not affect their eligibility for services or benefits. No information

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38 relating to a declination to register vote may be used for purposes other than voter registration.

All completed voter registration applications must be submitted to the NC State Board of Elections no later than five business days after accepting the voter registration application. There must be interagency coordination to ensure the appropriate information is submitted to the NC State Board of Elections. This information includes the number of voter registration forms submitted and the number of remote transactions, the method of communication (telephone, email or U.S. mail) and the transit method (U.S. mail or email). WORKFORCE INNOVATION AND OPPORTUNITY ACT (WIOA) North Carolina’s TANF/Work First program is a required and active partner with WIOA. Collaborative meetings are held quarterly to develop and implement best practices. • State and County TANF/Work First representatives participate in the planning of the Workforce Innovation and Opportunity Act (WIOA) “unified plan” to identify career pathways for TANF/Work First participants. Career pathways includes a combination of education, training, credentials, and career counseling that align with skill needs of state/ local industries. • Support services needed by TANF/Work First participants to participate in career pathways through WIOA and/or the NC Community College System are included.

• TANF/Work First participants are considered a “priority of service” for WIOA. State and County TANF/Work First representatives work collaboratively with WIOA and NCWorks Career Centers to develop and implement “priority of services” policies, referral procedures and disposition tracking. • County TANF/Work First programs partner with local NCWorks Career Centers to provide TANF/Work First participants with an array of services and labor market information offered through one-stop career services centers. State and county TANF/Work First representatives assist WIOA, Vocational Rehabilitation Services and NCWorks Career Centers in planning work-based training strategies for TANF/Work First participants with barriers to employment (including on the job training, subsidized employment and work experience programs). • State and county TANF/Work First representatives partner with state and local workforce development boards to engage employers and stakeholders to develop workforce strategies to ensure that TANF/Work First participants have access to emerging job opportunities with local businesses and industries. • Increase cross-program (TANF/Work First & WIOA) knowledge and training among staff members. • Coordination of services of TANF/Work First with Workforce Development partners through a formalized appraisal/referral process. • Coordinate co-location of Work First staff in the NCWorks Career Centers to more directly connect Work First recipients to employment activities. WIOA includes six core programs: Adult, Dislocated Worker, and Youth Formula Grants under Title I; Adult Education State Grants under Title II; Wagner-Peyser Employment Services under Title III; and Vocational Rehabilitation State Grants under Title IV.

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Priority of Service Requirements

WIOA includes enhanced “priority of service” requirements to ensure recipients of public assistance and other hard-to-serve populations may access critical employment and training services through the NCWorks system. TANF programs should work with workforce development boards and NCWorks Career Centers’ staff to develop and implement new priority of service policies; ensure that TANF recipients are prioritized under such policies; and are offered services to meet their needs.

Work-Based Training

WIOA strengthens the workforce system’s focus on work-based learning strategies for adults and youth with barriers to employment, with on-the-job training, subsidized employment, and work experience. Some TANF agencies have recent experience with such programs for disadvantaged workers and can assist WIOA agencies in implementing them. State and local planning efforts should identify areas where WIOA and TANF resources can be aligned to support and expand these efforts.

Employer Engagement

Local workforce boards must engage employers to ensure that workforce investment activities meet the needs of businesses. Importantly, WIOA emphasizes the creation and use of industry or sector partnerships, which bring together stakeholders connected to local industries to develop short and long-term workforce strategies in those industries. TANF programs should be included in local sector partnerships to engage employers and ensure that TANF participants can access emerging job opportunities. TANF programs connect to the NCWorks Business Services Representatives (BSR) to coordinate contact and activities with businesses to streamline services.

SUBSTANCE USE AND MENTAL HEALTH INITIATIVE

In response to growing demands for additional resources to meet the needs of individuals affected by substance use and mental health diagnoses, North Carolina has implemented a Behavioral Health Strategic Plan (BHSP), and an Opioid Action Plan. The BHSP2 identifies two focus areas for strengthening the behavioral health system:

• Ensuring timely access to high-quality services, and • Integrating behavioral health, I/DD, and physical health for children and adults.

The Opioid Action Plan focuses on three key areas to reduce the impact of the opioid epidemic:

Prevention • Cutting supply of inappropriate prescriptions and illicit opioids • Supporting youth through targeted programs to reduce youth misuse of the drugs • Improving maternal and prenatal care for women battling substance abuse

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Reducing Harm • Training systems and pharmacists to connect people to harm reduction services • Making the naloxone kits more widely available to the most burdened • Communities

Connecting to Care • Expanding access to treatment and recovery support • Addressing the needs of justice-involved populations

North Carolina law (N.C.G.S. Sec. 108A-29.1) requires, if there is reasonable suspicion, substance use screening and drug testing (urine toxicology) for the illegal use of controlled substances for each Work First program adult applicant or recipient is a condition of eligibility to receive assistance. Adult applicants or recipients will complete a verbal substance use questionnaire designed to determine if an adult applicant or recipient is at risk for alcohol and/or substance use disorders. When the results indicate illicit substance use, this meets criteria of ‘reasonable suspicion’ and a drug test is required within a period of time as specified by the Department. In order to establish eligibility to apply for Work First all applicants must have a background check completed by Work First to determine if there is a criminal conviction relating to an illegal controlled substance within the past three years. If there is, this is the second criteria that meets ‘reasonable suspicion’ and requires a toxicology test. The results of drug tests will remain confidential and will not be released to law enforcement. If an adult refuses to be screened initially for substance use, the adult is ineligible for Work First Cash Assistance. If otherwise eligible, the remaining household members can receive cash assistance.

When an applicant or recipient is determined to be at risk for an alcohol use disorder, they are referred to a Qualified Professional in Substance Abuse (QPSA) for a substance use disorder assessment and referred to substance used disorder treatment if indicated. Additionally, individuals who are engaged in or have completed substance use disorder treatment, are referred to the QPSA to have participation or completion confirmed, in part to support establishing eligibility for application or continued receipt of Work First program benefits. Individuals who are required to get drug testing to establish eligibility for Work First also have the opportunity to meet with a QPSA to gain information on substance use and substance use disorder treatment. A voluntary mental health screening is offered to all adult Work First applicants and recipients as part of the interview process. If the screening indicates the adult is at risk for mental health issues, the applicant/recipient may be referred to a Qualified Professional in Substance Abuse (QPSA) for further assessment.

If appropriate, a substance use or mental health referral is made through the Local Management Entity-Managed Care Organization (LME-MCO) to identify a provider for treatment, and then a treatment plan is developed. The QPSA serves as the care coordinator to track the adult’s engagement in treatment. The QPSA and the Work First case manager jointly develop a plan for the family to ensure success. If the adult fails to comply with the treatment plan without good cause; the adult is ineligible for Work First.

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41 The QPSA will assist the Work First worker in determining good cause. The family’s payment is recalculated with the adult excluded from the needs unit, and the payment is made to a protective payee.

Participants in treatment programs are expected to combine treatment with other appropriate work activities. The Opioid Action Plan increases the number of community- based recovery resources which include support groups, recovery centers and peer recovery coaches. The plan also reduces barriers to employment for those with criminal histories related to drug offenses via the use of therapeutic (mental health, recovery and veteran) courts. One strategy includes expanding employment support services for people with substance use disorders and increasing workplace policies and employment assistance programs that support people with substance use disorders. To reduce barriers to employment for those with criminal histories, another strategy includes supporting counties in adopting pre-arrest diversion programs and divert low-level offenders to community-based programs and services. For those with criminal histories, information will be provided on education options, career paths, and licensures that are available to people with different classes of convictions.

The Work First Program will seek new opportunities to align with efforts increasing access to behavioral health and substance use disorder treatment and resources. The Work First program will continue to collaborate with community, state, and federal partners in developing and providing trainings for county TANF/Work First staff to readily assist families with substance use resources and information.

FRAUD AND ABUSE

The Department of Health and Human Services enforces standards and procedures to detect and prevent fraud and abuse by recipients and employees of the program. An administrative hearing process enables county departments of social services/agencies to identify cases of intentional program violations. All Standard Counties follow the hearing policy stated in Work First Policy. Electing County’s Hearing policies are outlined in their county plan if different than policy in the Work First Manual. Individuals found to have committed an intentional program violation are disqualified from Work First for 12 months for the first offense, 24 months for the second offense, and permanently for the third offense. The offender is not included when determining the benefit amount for the family, but the offender continues to be subject to time limits and work requirements. The overpayment is recovered by repayment or payment reduction.

OUT-OF-WEDLOCK BIRTHS

County health and social services departments/agencies continue to collaborate to ensure that all recipients receive needed family planning services. Each county health and social services department/agency have formulated a plan to reduce barriers and promote family planning service utilization. An indicator to determine the percentage of out-of-wedlock births has been added to the Maternal and Child Health Accountability System to monitor health departments as they strive to meet this goal. This indicator is tracked on a county-by-county basis and is used in the evaluation of each health department’s effectiveness, resulting in health departments adopting strategies to improve their county performance measures.

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Teen Pregnancy Prevention Initiatives (TPPI), housed in the Division of Public Health, provide funding for local health departments, social services departments/agencies, school systems, and other community-based agencies to work with adolescents to prevent pregnancy among target populations. These agencies use “best practice models” in group settings. Techniques may include abstinence and life-skills education, youth development, parent workshops, counseling and referral, community awareness efforts, and male involvement. Topics include decision-making, leadership, information about specific areas of concern such as sexual coercion, statutory rape laws, and/or service learning.

STATUTORY RAPE

The North Carolina Department of Justice and the Office of Attorney General primarily administer the programs addressing the problem of statutory rape for law enforcement officers, the education system, and relevant counseling organizations. The North Carolina Coalition Against Sexual Assault (NCCASA) is an inclusive, statewide alliance working to end sexual violence through education, advocacy, and legislation. NCCASA provides statewide training to the state’s 70+ rape crisis centers, law enforcement officials, and colleges and universities. Rape Crisis Centers across the state provide rape counseling services and resources of sexual violence to survivors on a day-to-day basis. NCCASA Provides information, referrals, and resources to individuals, rape crisis programs, and other organizations, supports rape crisis programs and other individuals in their efforts to address sexual violence in their communities, advocates for local rape crisis programs, creating networking opportunities for those involved in the rape crisis movement. On a statewide level, NCCASA works with legislators to strengthen North Carolina sexual assault statutes, advocate on behalf of survivors, coordinate Sexual Assault Response Teams across the state, and hosts the NC Campus Consortium to educate and support NC campuses and their prevention efforts. Public schools in North Carolina are required to have child sexual abuse training per Session Law 2019-245 Senate Bill 199. Local educational agencies control how they administer the training and with what resources. These trainings typically include statutory rape as being a form of child sexual abuse.

The Department recognizes the importance of education as a tool for the prevention of sexual violence, including statutory rape. Primary prevention focuses on developing strategies that target the behaviors prior to victimization. The Teen Pregnancy Prevention Initiatives, housed in the North Carolina Division of Public Health (NCDPH) offers training to funded parenting programs regarding fatherhood involvement and legal issues, including child support.

The Department encourages the utilization of law enforcement, domestic violence, and other community-based agencies to educate teen fathers, non-custodial fathers, and young males. These institutional and community-based programs are ongoing and adhere to acknowledged philosophies and practices. The Teen Pregnancy Prevention Initiatives, housed in the North Carolina Division of Public Health (NCDPH) offer training to fund parenting programs regarding fatherhood involvement and legal issues, including child support. The Department continually works to identify opportunities for appropriate program expansion while reviewing the efforts of other states.

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43 FORMATION AND MAINTENANCE OF TWO-PARENT FAMILIES

Researchers have found many benefits for men, women, children, and their communities when adults are in healthy marriages. Some individuals are less likely to remain or end up in poverty and children and youth are less likely to become pregnant as a teenager when raised by parents in healthy marriages. The mission of the Healthy Marriages Initiative is to help couples that have chosen marriage for themselves, gain greater access to marriage education services, on a voluntary basis, where they can acquire the skills and knowledge necessary to form and sustain a healthy marriage. Local community-based family resource centers provide a comprehensive array of family support programs, services and activities to encourage the formation and maintenance of two-parent families.

NATIVE AMERICAN TRIBAL PLAN The State of North Carolina recognizes eight Native American tribes: • Eastern Band of Cherokee (tribal reservation in the Mountains) • Coharie (Sampson and Harnett counties) • Lumbee (Robeson and surrounding counties) • Haliwa-Saponi (Halifax and Warren counties) • Sappony (Person County) • Meherrin (Hertford and surrounding counties) • Occaneechi Band of Saponi Nation (Alamance and surrounding counties) • Waccamaw-Siouan (Columbus and Bladen counties) The Eastern Band of Cherokee Indians is the only North Carolina tribe recognized by the federal government. The Eastern Band of Cherokee Indians (EBCI) is approved to operate a Tribal TANF plan by the United States Department of Health and Human Services, Administration for Children and Families. The EBCI TANF Tribal plan provides for the intake, eligibility determination, cash assistance, employment services, and case management for tribal families. The EBCI continues to operate a pre-existing Native Employment Worker (NEW) program. North Carolina does not include these individuals in the state’s federal work participation rate. The State will provide each member of an Indian tribe, who is domiciled in the State and is not eligible for assistance under a tribal family assistance plan, with equitable access to assistance under the state program funded under Title IV-A of the Social Security Act. INDIVIDUAL DEVELOPMENT ACCOUNTS (IDA)

Counties may establish Individual Development Accounts (IDA) projects locally based on the counties’ resources available. Counties’ IDA projects must comply with federal and state regulations and with Section 404(h) of the Social Security Act.

CONFIDENTIALITY

The Division complies with State and federal laws/regulations as it pertains to confidential information. North Carolina General Statute Sec. 108A-80 states that it is unlawful for information to be released from a family’s records, except for the purposes directly connected with the administration of programs of public assistance and social

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44 services. The law requires the Division to establish and enforce policies governing restrictions on the use and disclosure of any information concerning applicants and recipients of public assistance and comply with applicable provisions of the Social Security Act concerning confidentiality.

FAMILY VIOLENCE OPTION

North Carolina has adopted the Family Violence Option. The state has developed standards and procedures to notify all Work First applicants and recipients about domestic violence to identify applicants and recipients with a history of being a victim of domestic violence, sexual harassment and stalking. These individuals are referred to counseling and supportive services (while maintaining their confidentiality) and may receive a temporary waiver from one or more Work First requirements if domestic violence is preventing them from meeting these requirements.

The Department has adopted the option to waive Work First requirements such as time limits, participation in work activities, child support cooperation, and family cap provisions in cases where there is good cause to show that compliance would make it more difficult for the recipient to escape domestic violence. These waivers also apply to situations that would unfairly penalize someone who is, or has been, a victim of domestic violence. The length of waivers is determined on a case-by-case basis, but may not exceed six months at a time, and may be reevaluated as appropriate.

A substantial body of research has established that having an unmet resource need, including experiencing food insecurity, housing instability, unmet transportation needs and interpersonal violence or toxic stress, can significantly and negatively impact health and well-being. It can also increase healthcare utilization and costs. With this in mind, North Carolina is launching the Healthy Opportunities pilots as part of its Medicaid Transformation efforts. The pilots are an opportunity for payers, providers and community-based organizations to have the tools, infrastructure and financing to integrate non-medical services directly related to improved health outcomes into the delivery of care. During the 2022-2025 TANF plan, we will strategically align with increased resources and opportunities to address interpersonal and family violence identified within the Health Opportunities pilots.

Pursuant to Section 402(a)(8) of the Social Security Act (42 U.S.C. 602(a)(8)); Consolidated Appropriations Act, 2022, section 703, as of March 15, 2023, the state has established, and is enforcing, standards and procedures to ensure that applicants and potential applicants for TANF are notified of assistance made available by the state to victims of sexual harassment and survivors of domestic violence, sexual assault, or stalking.

Pursuant to Section 402(a)(8) of the Social Security Act (42 U.S.C. 602(a)(8)); Consolidated Appropriations Act, 2022, section 703, as of March 15, 2023, the state has established, and is enforcing, standards and procedures to ensure that case workers and other agency personnel responsible for administering the TANF program are trained in: the nature and dynamics of sexual harassment and domestic violence, sexual assault, and stalking; state standards and procedures relating to the prevention of, and assistance for, individuals who are victims of sexual harassment or survivors of domestic violence, sexual assault, or stalking; and methods of ascertaining and ensuring the confidentiality of personal information and documentation related to applicants for assistance and their

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45 children who have provided notice about their experiences of sexual harassment, domestic violence, sexual assault, or stalking.

LOCAL IMPLEMENTATION PLAN

Counties must develop a local plan addressing how the Option will be implemented and operated locally to state office by the end of the current fiscal year June 30, 2023. The protocol must include, at a minimum:

• The qualified family violence agencies/individuals within the community who will accept referrals for Work First participants. • The individual/agency responsible for screening/assessment; • The worker within the agency responsible for giving notifications; • Crisis intervention procedures.

Each county must designate an individual(s) within DSS or get the assistance of an outside agency to conduct screenings and/or assessments. The individual conducting the assessment must be trained in family violence. Although there is no licensing procedure for family violence professionals, counties should carefully select the individuals/agencies who will be responsible for conducting in-depth assessments. In making the selection, consult with 1 or more of the following: The Council for Women, the NC Coalition against Domestic Violence, or the local domestic violence program in the county or area recognized by the NC Council for Women.

TRAINING

State Work First (TANF) office will develop and disseminate Domestic Violence training to all 100 counties by 09/30/23. State office monitoring team will ensure all counties have received the material and trained their TANF staff through quarterly compliance visits. Counties will require all Work First staff and agencies who serve Work First participants to complete Domestic Violence training before speaking with participants about Family Violence/Domestic Violence option. The training will include the following: (1) the dynamics of domestic violence, sexual harassment, sexual assault and stalking; (2) state procedures designed to prevent domestic violence and other forms of gender- based violence and assist survivors; and (3) procedures to ensure confidentiality of survivors’ personal information. A standardized training packet will be available for use by counties from the Division of Social Services. Individuals/agencies with whom the county contracts for family violence services must also be trained on the Option and Work First. All Work First personnel including county staff, and Work First contract staff must complete Domestic Violence training annually and it is the counties responsibility to record county staff/contractor completion.

ENFORCEMENT (state level) State office will incorporate the new Domestic Violence requirement into existing Monitoring plans when conducting county reviews to ensure compliance with this requirement.

LOCAL DEMONSTRATIONS OR PILOT PROGRAMS

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Counties may request approval from the Division of Social Services to design and operate demonstrations or pilot programs to investigate various ways of meeting the Work First program purposes and goals. These demonstrations will likely be in areas where the county lacks the authority to make specific program changes. Funding, in addition to the county’s local block grant, may or may not be provided. There may be instances in which the State asks for proposals to address a specific topic. In other situations, counties may apply to the State to operate a pilot without an official request from the State.

TANF ELIGIBLE FAMILIES

To achieve the goals of Work First, North Carolina opts to take advantage of the flexibility allowed in the federal law and regulations. The Division defines several categories of eligible families. Eligible families include the following:

• Families that meet the income and resource requirements will be provided Work First cash assistance or Benefit Diversion; if Benefit Diversion is offered by the county. • Unwed parents, teenage parents or other high-risk populations in need of services to prevent or delay pregnancies without regard to family income. • Pregnant women with Work First eligible children in the household whose income is at or below 200% of the federal poverty level may receive support services. • Non-custodial parents of Work First children where the non-custodial parent’s family income does not exceed 200% of the federal poverty level may receive work-related services. • Families with incomes that do not exceed 200% of the federal poverty guideline may receive all other services, including, but not limited to: Job retention and advancement services, employment services, support services, and preventive family services including child protective services and related child welfare activities. • Any former Work First recipient without regard to family income may receive limited follow up and referral services.

In addition to serving the families described above, North Carolina provides services covered in North Carolina’s approved State Plan as authorized by Parts A and F of Title IV of the Social Security Act in September 1995. Specifically, the services listed in the plan will be provided to families or children who are experiencing an emergency as defined in the plan and who do not have sufficient resources to alleviate the emergency. Services specifically include all child welfare services (e.g., child) protection, preventive family services, family preservation, and foster care and adoption services including foster care payments. Residential and emergency placement services can also be funded through this provision. Emergency assistance to needy families with children provides the following services under Citation 233.120: A. Emergency Assistance to needy families with children under the age of 21 is provided in accordance with 45 CFR 233.120.

( ) No (Paragraphs B. - D of this Section do not apply.) (x) Yes, as specified below:

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47 Emergency Assistance shall be provided to or on behalf of a needy child under the age of 21, the specified relative of the needy child, and any other member of the household in which he they are is living. The needy child under the age of 21 who is within the specified degree of relationship must be living with the specified relative or have lived with the specified relative within six months prior to the month in which Emergency Assistance is requested.

B. Families of migrant workers are covered.

( ) No. (x) Yes, on statewide basis. ( ) Yes, but only in the following areas of the State:

C. Other eligibility requirements are in effect.

( ) No. (x) Yes, as specified below.

1. To be eligible for AFDC-Emergency Assistance, the applicant family must be without resources available to pay for what is needed to alleviate the emergency.

2. An individual who is an illegal alien is not eligible for AFDC-Emergency Assistance.

D. The kinds of emergency situations which are covered by this program and the kinds of assistance and services provided to meet the emergency situations are detailed below: A. Kinds of emergencies covered:

1. A crisis resulting from a catastrophic illness 2. Substantial loss of shelter, food, clothing, or household furnishings due to fire, flood, or similar natural or man-made disaster, or a crime of violence 3. Emergency over which there was no control, and which left the family homeless or in immediate danger of eviction or foreclosure 4. A situation in which Emergency Assistance is necessary to avoid destitution of the needy child or to provide shelter for the child 5. Emergency which could lead to destitution and the destitution or need for a living arrangement did not arise because the child or a specified relative refused, without good cause, to accept employment or training for employment 6. Mass emergencies 7. Loss of a relative who has been responsible for

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48 support and/or care of one of his family members 8. Abuse, neglect, or dependency of children 9. Situation in which a child is at risk of removal from the home 10. Situation in which return to the home of a child who is currently separated from his family may create an emergency.

B. A heating or cooling-related emergency shall not be covered.

C. Kinds of assistance provided to meet emergency situations:

1. Cash assistance up to a maximum of $300 to alleviate the emergency by meeting basic needs for families whose total net income is at or below 110% of the current poverty level and total countable reserve is at or below $2,200. (Liquid assets must be at or below $300.) Basic needs include:

(a) Temporary shelter, food, and clothing; (b) Transportation; (c) Home repairs such as repair of frozen pipes and plastic covering for windows; (d) Replacement or repair, when appropriate, of necessary appliances, household items, or furniture; (e) Outpatient medical services such as prescriptions, eyeglasses, and doctor visits if the expense is not covered by the Medicaid Program, or the individual needing the care is either not receiving or is ineligible for Medicaid; and (f) In-kind goods such as clothing, blankets, food:

2. In-Home Services including Assessment; Case Management/Service Planning and Coordination; Counseling and Treatment Services; Family Support/Family Preservation: Day Support Services: and Psycho-Educational Services. 3. Out-of-Home Services, including Residential Placement; Care and Treatment in a Family Setting; and Care and Treatment in a Group Setting. 4. Other Services, including Consultation and Education; Other Child Welfare Services; and, Transportation.

The above assistance must be authorized within a single 30-day period; no less than 12 months after the beginning of the family's last EA authorization period and are limited to

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49 a maximum duration of 364 days. Child Protective Services and related Child Welfare Services may be provided without regard to family income.

MARRIAGE EQUALITY Same-sex marriage is constitutional in all states. The definition of “spouse,” includes a legally married individual regardless of gender.

USE OF FUNDS

Federal funds will be used in accordance with federal law and regulations. TANF funds will be used to meet the four purposes of TANF specified in the P.L. 104-193. Federal, state, and county TANF funds will be invested in activities to support achievement of specified outcome measures. These activities include but are not limited to, enhanced training for State and local staff, automation, employer incentives, family planning services, substance use treatment, child care, transportation, and other activities promoting self-sufficiency for families. In addition, federal TANF funds will be used for the services previously included in the AFDC-Emergency Assistance (EA) plan as specified in Appendix F.

Federal TANF funds may be spent as follows and in accordance with federal law and regulations.

• Work First cash assistance and Work First Services. • Child care and early education. • Supportive services, including, but not limited to: work-related expenses and transportation. Educational activities intended to increase self-sufficiency, job training, and work, excluding any expenditure for public education in the state except expenditures that involve the provision of services or assistance to a member of an eligible family that is not generally available to other people. • Administrative costs (which may not exceed 15% of the total funds spent for purposes under Title I of the federal block grant) are defined as costs associated with office directors, policy, fiscal, budget, personnel, purchasing, legal, clerical support, and direct, indirect, and allocated costs in support of these positions. Program supervisors, program clerical staff, and support costs of program staff are services costs rather than administrative costs. Staff time spent solely on determining financial eligibility, including evaluating assets, is counted as administrative. • Case management staff and services, including outreach and follow-up activities. • Expansion of child support efforts, including fatherhood initiatives, and training for eligible non-custodial parents. TANF funds or MOE will be used to fund a concentrated plan to increase the level of child support collections for eligible families. • Cost-sharing requirements under the Job Access program under Section 3037 of the Transportation Equity Act for the 21st Century (P.L. 105-178). • Automation • Other uses that reasonably can be expected to enable families to care for children in their homes; promote job preparation, work, and marriage; that prevent or reduce the incidence of out of wedlock pregnancies; and encourage parents to marry and remain married.

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50 • Any purpose for which the state was authorized to use funds received under Parts A and F of Title IV of the Social Security Act as they were in effect on September 30, 1995. North Carolina will continue, as it has since 1995, to provide services (including child welfare services) to at-risk children as was approved in the Title IV-A State Plan as of September 30, 1995. A description of these services is in Appendix D.

If federal TANF funds are insufficient to cover cash assistance costs in the event of economic downturns, other federal, state, and county funds may be used to meet the costs of assisting needy families. Counties can retain partial collections made on overpayments to recipients not due to agency error, including childcare overpayments.

MAINTENANCE OF EFFORT

Under state law, both the counties and the state provide Maintenance of Effort (MOE) funds. County spending is generally through the county Work First Block Grant. This block grant contains an allocation of Federal funds used for those services that meet the requirements for TANF expenditures. It also contains state and county funds that are used to meet the MOE requirements. Additional state funds for Maintenance of Effort are spent on such items as child care, state administrative costs, and automation.

In general, services provided under the first and second purposes of TANF, using TANF funds, and any of the purposes using Maintenance of Effort funds, may only be provided to families that are financially needed (i.e. with incomes at or below 200% of the federal poverty level). Services provided under the third and fourth purposes of TANF, using Maintenance of Efforts funds, may be provided without regard to income if the expenditures are pro-family. All other services provided for the purposes of using MOE funds are subject to incomes at or below 200% of the federal poverty level. Services may be provided to families or children who are experiencing an emergency as defined in the plan, and who do not have sufficient resources to alleviate the emergency.

MOE funds may be used for the activities listed below:

• Work First cash assistance. • Work subsidies services which include On-the-Job Training (OJT) and Subsidized Employment. For OJT, each individual county based on the circumstances locally, will determine the amount of subsidy. On-the-job training may occur in any non-profit, for profit, public or private setting. Participation in this activity offers the opportunity to learn a new trade in a supportive environment, while transitioning into a regular, unsubsidized employee status. • Educational activities intended to increase self-sufficiency, job training, and work, excluding any expenditure for public education in the state except expenditures that involve the provision of services or assistance to a member of an eligible family that is not generally available to other people. • Employment services directed toward Job Development and Placement, and Job Search and Readiness. • Subsidized childcare to assist with the cost of childcare for families with incomes at or below 200% of the federal poverty level and who need childcare in order to work.

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51 • Information and case management services, including outreach and follow-up activities. • Other Work First services activities which include the provision of mental health services and housing expenditures other than housing subsidies. • Retention services provided to former Work First cash recipients and eligible families who are not currently receiving Work First whose incomes are at or below 200% of Federal Poverty Level, including but not limited to, transportation, child care, job retention bonuses and services, child and family enrichment services, support services, employment services, and preventive family services, case management, follow-up, mentoring, after school learning programs, parenting programs, literacy programs, and post-employment skills training. • Specialized services designed to allow Work First recipients to participate in approved activities and to assist families in the transition from welfare to self- sufficiency. • Supportive and preventive services, including, but not limited to: child and family enrichment services, work-related expenses, and transportation. • Administrative costs (which may not exceed 15% of the total funds spent for purposes under Title I of the federal block grant) are defined as costs associated with office directors, policy, fiscal, budget, personnel, purchasing, legal, clerical support, and direct, indirect, and allocated costs in support of these positions. Program supervisors, program clerical staff, and support costs of program staff are services costs rather than administrative costs. The staff time spent solely on determining financial eligibility, including evaluating assets, is counted as administrative. • Automating the provisions of the law. • Child Welfare Services to encompass a broad range of services including family preservation and support, Child Protective Services, Foster Care and Adoption Services, counseling and individual and family adjustment services, in-home aide services, intake and case management, housing improvement, and other services. • Emergency services to assist with families’ sporadic emergency needs such as a utility cut-off notice or an eviction notice. • Non-assistance housing subsidy services that can help families meet their goals for self-sufficiency and allow children to be cared for in their own homes or in the homes of relatives. • Participation services such as adult care, Work Experience, and other expenses necessary for participation in the Work First program. • Other uses that reasonably can be expected to enable families to care for children in their homes; that promote job preparation, work, and marriage; that prevent or reduce the incidence of out of wedlock pregnancies; and that encourage parents to marry and remain married. • Programs for at-risk youth that provide after school programming, mentorship, remediation, alternative education, dropout prevention, and other supportive services. • North Carolina pre-Kindergarten, early education, and other school readiness programs intended to ensure youth are prepared to enter school.

IMPLEMENTATION

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52 North Carolina will phase in implementation, based on resources, training needed, and automation abilities. Any changes requiring modifications to the existing Client Services Data Warehouse (CSDW), Services Information System (SIS) or North Carolina Families Accessing Services through Technology (NC FAST) that support the Work First program will be delayed until the modifications can be implemented in the systems. Existing policies remain in effect until the required automation changes can be made effective or changes not requiring automation can be put into place.

AMERICANS WITH DISABILITIES ACT REQUIREMENTS (ALL COUNTIES)

In accordance with federal law and U.S. Department of Health and Human Services policy, county departments of social services/agencies are prohibited from discriminating against any person based on race, color, national origin, sex, age, religion, or disability in admission, treatment or participation in its programs, services activities, or in employment. All counties are required to have policies and practices in compliance with American with Disabilities Act (ADA) as well as the provision of interpreter services for its citizens who require such accommodations. Counties are asked to provide a detailed discussion on how the county complies with ADA as well as how they accommodate requests for interpreter services.

To ensure effective communication and meaningful access to programs and services, individuals with disabilities will be notified of the availability of services at no cost. Such services may include but are not limited to: sign language interpretation and foreign language interpretation services.

Documents notifying applicants and program participants of adverse actions will be communicated in plain language and provided in the applicant’s primary language or will include information on how to have the documents interpreted free of charge.

The Division will track statistical information as it relates to individuals with disabilities.

The Personal Responsibility and Work Opportunity Reconciliation Act requires Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973 (Section 504) apply to TANF programs. The ADA (42 USC Section 12101 et seq.; 28 CFR Part 35) applies to counties and other local governments administering all or part of the TANF program, and Section 504 (29 USC Section 794; 45 CFR Part 84) applies to entities that receive federal funding, either directly or indirectly, through a grant, contract, or subcontract. The two significant elements of Section 504 and Title II of the ADA are:

* Individualized treatment; and * Effective and meaningful opportunity.

Individualized treatment means that individuals with disabilities should be treated on a case-by-case basis and not on stereotypes and generalizations. Further, individuals with disabilities must be afforded the opportunity to benefit from Work First in the same manner as those individuals who do not have disabilities. Exempting individuals with disabilities from work requirements denies these individuals access to services and may result in discrimination.

Section 504 and ADA requires that agencies:

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* Ensure equal access to employment programs for qualified individuals with disabilities through the provision of appropriate services; * Adopt methods of administration, which do not discriminate against and ensures equal access and opportunity to qualified individuals with disabilities; and * Modify policies, practices, and procedures to provide equal access which allows qualified individuals with disabilities to participate in and benefit from employment programs; unless doing so would fundamentally change the program or cause an undue hardship.

Qualified individuals with disabilities must be provided reasonable accommodations so, they have an opportunity to participate in and benefit from services and programs that are as effective and meaningful as those available to individuals without disabilities. A reasonable accommodation is any reasonable change in the way the Work First program administers the program, or the way it requires individuals or families to participate. Exempting the Work First participant for “good cause” when they are unable to meet work requirements because they have a disability or are caring for a family member with a disability, is not an alternative to evaluating the need for accommodations. To ensure that individuals with disabilities have equal access to employment programs, the Work First staff must screen and assess all applicants and participants to determine the participant’s specific abilities and limitations. Screenings and assessments will occur periodically to address potential program participation barriers. Individuals may be referred to the Division of Vocational Rehabilitation for determination of their eligibility for such services, or to other qualified professionals for a comprehensive assessment.

Any applicant or recipient who meets the ADA’s definition of disabled, and those individuals caring for family members who are disabled, should be provided reasonable accommodations, if needed. Reasonable accommodations may include but are not limited to:

* Part-time work activities; * Reasonable accommodations for work activities; * Job restructuring, including part-time or modified work schedules, modification of equipment and examinations, provision of qualified readers, interpreters, or job coaches; * Additional assistance or increased supervision in work activities; * Assistance with application for benefits, including a notification process for those with learning disabilities; and * Specialized child care for a child with a disability.

Accommodations will be considered when scheduling appointments and requesting that the individual obtain and provide documents for verification purposes.

An individual, who has requested an accommodation and believes they have not been adequately accommodated, must notify the Work First case manager verbally or in writing. Within 7 workdays of the receipt of notification, the county should have a meeting to include the individual and/or his/her representative and appropriate staff. The county has 14 workdays from the date of the meeting to respond to the request. The county must notify the individual of the decision in writing within the 14 workdays from date of the meeting.

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54 The county department of social services/agencies are required to inform the applicant or recipient that disclosure of a disability is voluntary. This includes screening for a disability, including learning disabilities and mental health disorders. Nonetheless, counties must inquire about an individual’s health related limitations to determine the appropriate work assignments. The participant does not have to provide the information. Individuals, who believe they have been discriminated against based on disability (including failure to provide reasonable accommodation), race, national origin (including the failure to provide access to services to people with limited English proficiency) may file a complaint with the Office of Civil Rights (OCR) at the U.S. Department of Health and Human Services.

There are times when identification and treatment of a disability are necessary for program administration. Under these circumstances, a participant may be required to participate in efforts to evaluate a suspected disability and participate in necessary treatment. Those circumstances may include:

A. If a participant reports they are unable to work or have limited work capacity the individual may be required to substantiate their statements by providing medical documentation, and/or participating in screenings and evaluations as agreed on the MRA/Outcome Plan. Failure to comply may result in a sanction of benefits. All participants are given an opportunity to provide any required medical documentation before a sanction of their benefits occurs. B. If a participant has demonstrated an inability to successfully participate in work activities, or employment and the worker has reason to believe this is due to a disability or work limitation; the county may require the participant to be screened or evaluated to establish the necessary services to support the participant in achieving success in the Work First program. If the screening or evaluation determines that the participant requires treatment, the participant may be required to participate in the necessary treatment as a condition of the MRA/Outcome Plan.

Individuals with confirmed disabilities must be provided with reasonable accommodations and services to support their participation in employment and work- related activities.

TITLE VI REQUIREMENTS (ALL COUNTIES)

In accordance with federal law and U.S. Department of Health and Human Services (HHS) policy, county departments of social services/agencies are prohibited from discriminating against any person based on race, color, national origin, sex, age, religion, political affiliation or disability in admission, treatment or participation in its programs, services activities, or in employment. All counties are required to establish policies and practices in compliance with Title VI of the Social Security Act, as well as the provision of interpreter services for its citizens that require such accommodations.

To ensure equal access to employment programs, the Work First staff must screen and assess all applicants and participants to determine the individual’s specific abilities and limitations. Screenings and assessments will occur periodically to address potential program participation barriers.

North Carolina 55 To ensure effective communication and meaningful access to programs and services, individuals with disabilities or limited English proficient (LEP) will be notified of the availability of services at no cost. Such services may include but are not limited to: sign language interpretation and foreign language interpretation services. Documents notifying applicants and program participants of adverse actions will be communicated in plain language and provided in the applicant’s primary language or provided with information on how to have the documents interpreted free of charge. All members included in the Work First application must be US citizens or qualified or otherwise eligible immigrants. If an applicant or recipient requires an interpreter, the county departments of social services/agencies must provide such services for the applicant or recipient. Generally, this service is provided during the initial contact with the applicant as well as during ongoing contacts. All rules of confidentiality must be applied regarding citizenship/immigrant status. It is a breach of confidentiality to discuss an individual’s citizenship/immigrant status with employers, landlords, etc.

North Carolina 58 APPENDIX A Electronic Funds Transfer Section 4004 of the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96) amends the Social Security Act, adding a requirement for states receiving TANF grants to “maintain policies and practices necessary to prevent assistance provided under the State program funded under this part from being used in any electronic benefit transfer transaction in any liquor store, any casino or gambling establishment, or retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for establishment.” The new requirements aim to ensure that cash assistance is used in a manner consistent with the purposes of TANF and to serve to promote the integrity of the program and the responsible stewardship of public funds. There are currently two methods of issuance for Work First payments, electronic funds transfer (EFT), or electronic benefit transfer (EBT) card. This allows benefits to be provided in a timely manner, reduces theft and fraud, and eliminates the need to pay check-cashing fees. The methods of issuance are direct deposit to the individuals’ checking or savings account or EBT card. Direct deposit allows for the monthly Work First cash assistance payment to be electronically deposited to a personal savings or checking account of the case head. EBT is an electronic system that allows recipients to access their benefits with a plastic card, like a bank card. Procedures and Strategies In accordance with federal law, the Division is required to develop policies and procedures to prevent access to Work First cash assistance payment through electronic fund transactions at casinos, liquor stores, and establishments providing adult-oriented entertainment. The Division is also required to ensure recipients have adequate access to their cash assistance, and ensure recipients incur minimal fees or charges when using or withdrawing cash assistance funds. For compliance, the Division implemented an education campaign for all Work First program applicants and recipients for compliance with the federal law. There was mass mailing to all Work First recipients regarding the transition to electronic payments in English and Spanish text. The electronic benefits brochure was revised and is distributed at initial application, eligibility review, and upon participant request. Work First applications are completed onsite at the local agency unless reasonable accommodations are required. The brochure explains the EBT payment process including; transaction restrictions for Work First cash assistance, related fees and access schedules. The Public Assistance Rights and Responsibilities Form, which is given to all applicants and recipients, has been revised to include language regarding EBT use restrictions. A Frequently Asked Questions (FAQ) about Electronic Benefits document was developed and is posted on the Division of Social Services public website for public viewing. The online FAQ reflects the EBT brochure’s information which is always accessible for public viewing and agency use . The Division collaborates with state and local agencies which regulate gaming, adult entertainment and liquor stores. The agencies are the North Carolina Alcohol Beverage Control (ABC) Commission, the local ABC Boards, North Carolina Public Safety and the

North Carolina 59 Tribal Gaming Commission. Letters were mailed to the aforementioned regulatory and licensing agencies to educate and inform of the federal law regarding EBT transactions in the proscribed retail establishments. A request was also made to these agencies to partner and collaborate with the agencies in developing additional strategies for enforcement. These regulatory and licensing agencies were provided with a facsimile of the EBT card to acquaint them with this prohibited method of payment. The Division will have ongoing dialogue with the agencies to evaluate the effectiveness of this initiative and to implement additional strategies as necessary. The Division provided local social service agencies policy guidance regarding the transition to electronic payment issuance and EBT restrictions. Local social service agencies have access to EBT brochures and FAQ for distribution when engaging applicants and recipients to ensure that recipients are aware of the EBT fees and restrictions. Local social service agencies are encouraged to ensure that Work First recipients are informed and reminded of the restrictions on a regular basis. The Division continues to develop and implement strategies for EBT restrictions. These ongoing steps include collaborating with the EBT vendor to identify and block access to restricted Automated Teller Machines (ATM) and to monitor and maintain a current list of prohibited locations. Specific control methods and/or system enhancements include, but not be limited to: a) Identifying locations where EBT cash transactions are prohibited; b) Blocking ATM cash transactions at specified locations; and c) Blocking EBT cash purchase transactions at the following locations: 1. Drinking Places (Alcoholic Bev) – Bars, Taverns, Nightclubs 2. Package Stores, Beer, Wine, Liquor 3. Betting (including Lottery/Casino/Wagers at Race Track 4. Sweepstakes Parlors (online gambling) 5. Adult Entertainment (nightclubs, strip clubs) The Division will periodically evaluate the effectiveness of the policies and procedures to prevent the use of Work First payments via electronic benefit transactions at specific locations and adjust policies as necessary. Policies and Fees There may be fees associated with direct deposit that are imposed by the recipients’ financial institution. These fees are the responsibility of the recipient. The financial institution cannot impose charges for an account that it does not impose on its other customers for that same type of account. Work First households will receive the initial EBT card at no cost. If the family receives Food and Nutrition Services (FNS) benefits, the Work First payment may be issued on the same card. The first cash withdrawal transaction at an Automated Teller Machine (ATM) is free. There is a $0.85 for each additional cash withdrawal. There are not any fees for point-of sale (POS) transactions. Work First households that request a replacement EBT card shall be assessed a $2.50 fee. The fee shall be deducted from the account of the Work First household. The fee shall be refunded if the EBT card:

North Carolina 60 a) was lost in the mail or damaged by the vendor prior to receipt by the Work First household b) is being replaced due to a name change on card c) was lost due to a natural disaster such as a fire, flood, tornado or hurricane d) was damaged by a retailer or vendor. Fees associated with the use of the EBT card will be deducted from the balance of the card based on the available benefits in the account. If the recipient is receiving FNS benefits and Work First, the $2.50 card replacement fee will be deducted from the FNS allotment first. If there are not sufficient funds in the FNS EBT account or the recipient does receive FNS, the replacement card fee will be deducted from the program account with funds available to cover the fee. If there are not sufficient funds in any single account, the EBT system will issue the card and deduct the funds at the next benefit issuance. Ensuring Adequate Access Many Work First households do not have access to transportation or the funds for transportation if ATM or POS machines in their neighborhoods are restricted and they are forced to travel further to obtain benefits. To ensure adequate access, the Division: (1) allows recipients to withdraw funds based on their needs, without any restrictions on frequency or amount; (2) provides the choice to receive funds via direct deposit or EBT; (3) provides information regarding fees and surcharges, at minimum, during the application and review process. All local county agencies are required to inform and discuss with all applicants/recipients the Electronic Issuance process, so the best decision can be made for the family. EBT Brochures and a Frequently Asked Questions (FAQ) flyer are available at the local county agency. Counties maintain inventory of EBT brochures. Counties can order brochures yearly or as needed. The FAQ is also available on the NC DHHS/DSS website. The Division continues to collaborate with local agencies to ensure adequate access to benefits and to mitigate any access barriers as identified for participants. Misuse The Division applies compliance measures when it is determined there is EBT misuse. Misuse of the card may result in the following: • a determination of fraudulent activity and repayment of benefits; • assignment of a protective payee; and/or • loss of cash assistance benefits. At the initial infraction, a protective payee will be assigned for period of 6 months or until the next case review, whichever is less. If a protective payee is assigned the Work First cash assistance payment will be issued on a separate EBT dedicated to the Work First payment only. Co-mingled funds (Work First and FNS funds) issued on the same card will be issued on a separate EBT card if a violation occurs. Subsequent infractions may result in the case head being excluded from the Work First cash assistance payment. The children will remain eligible for the reduced cash assistance payment with an assigned protective payee. The case head will remain

North Carolina 61 subject to the cash assistance time limits, program requirements and work requirements if applicable. In addition, efforts will be made to recoup any funds accessed or used in the restricted locations. Individuals who inadvertently use an EBT card at prohibited locations will be evaluated on a case by case basis to ensure non-discrimination. When violations are identified, such actions are subject to applicable appeals procedures needed to meet due process requirements. The Division will determine on an individual basis and/or evaluate for good cause if benefits should be terminated for the whole family or adults only. Monitoring As a part of the Work First Compliance Monitoring Plan, selected cases that display recipients’ transaction records are reviewed to determine compliance and ensure that purchases were not made at any restricted locations, which are: casinos, gambling casinos or gaming establishments or any retail establishment which provides adult- oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment. The methodology includes a random case selection of ten cases per county (Child Only and Work First Benefits) that are reviewed, evaluated, and monitored each quarter of the State Fiscal Year. EBTedge (the EBT automated data system) and the North Carolina Families Accessing Services through Technology (NC FAST) automated case management systems are utilized to monitor these cases.

North Carolina 62 APPENDIX B WORK OVER WELFARE IN CABARRUS COUNTY In legislation ratified June 12, 2003, the North Carolina General Assembly provided for the continuation of the Work Over Welfare (WOW) Program in Cabarrus County as a demonstration welfare reform program for certain Work First and Food and Nutrition Services recipients. Except as described below, Work First in Cabarrus County operates under the standard policies described in the State TANF Plan. The Cabarrus County WOW Program provides job opportunities to all able-bodied Work First and FNS who are required to participate in Work First Employment Services. WOW is primarily a wage-supplementation program that diverts the Work First benefits that would be paid to recipients to match employer funds and subsidize the recipients’ wages. Wages paid to WOW participants, which contain grant-diverted funds, are exempt from income for purpose of determining eligibility for assistance. Participants are subject to termination of Work First benefits for the household the month following any month in which they fail to comply with participation requirements. Benefits are restored after the client agrees to comply with requirements and files a new application. To ensure that children are not harmed, sanctioned households are monitored by social workers, and benefits may be paid directly to vendors for basic needs. All individuals will be evaluated for ongoing Medicaid any time Work First terminates. A recipient who voluntarily terminates employment without good cause will be ineligible for Work First until the individual returns to work, provided work opportunities are available. Failure or refusal to pursue child support without good cause is grounds for denial of benefits. Benefit Diversion payments will be made in amounts up to one thousand two hundred dollars ($1,200). Applicants receiving the diversion payment will not be eligible for ongoing Work First benefits for a period of three months from the date of receipt of the diversion payment. Individuals receiving a diversion payment must attend budgetary counseling and may be required to have a protective payee for the diversion payment. Federal funds may be transferred from the TANF Block Grant to the Social Services Block Grant to be used to pay for home studies, attorney fees, and ongoing cash payments for the adoptive family, and other adoption expenses for Work First children who are living with relatives other than their biological parents.

North Carolina 63 APPENDIX C - ELECTING COUNTY PROTOCOLS BEAUFORT COUNTY 1. If a participant receives Benefit Diversion and subsequently applies for and begins to receive Work First cash assistance during the next twelve months, the participant will be responsible for paying back any diversion assistance that has been received. 2. No exception to family cap policy for a child born to a minor mother. 3. At or below 200% of the poverty level, an applicant must be actively seeking employment or be employed. The certification period will be for three months with the possibility of an extension not to exceed six months within a 12-month period. 4. Beaufort County will provide an emergency assistance payment to Safety Resource families that request assistance with caring for children placed in their home by Child Welfare when the permanent plan is to return the children(ren) to the parent’s care within 6 months. 5. Caretakers are encouraged to seek legal custody for child(ren). 6. Single parents with a child 3- month-old or younger are exempt from the requirement to participate in Work First employment activities. 7. All mandatory (able-bodied) participants will be required to complete at least 35 hours per week of work or work-related activities. The hourly requirements for two parent household is, 35 hours per week of work or, work related activities. If federally funded child-care is involved, then the hourly requirement for a two-parent household is required to complete 55 hours per week of work or work-related activities. 8. Job search and timesheets must be submitted weekly. 9. Direct reimbursement of transportation expenses for use of a personal vehicle is limited to the reimbursements rate for county employees 10. All mandatory Work First Employment participants are encouraged to complete high school or GED within 24-month time limit. 11. All mandatory Work First Employment participants with employment-related physical or mental limitations will be referred to VR for assessment of eligibility or ineligibility for services 12. Three-step hearing process: (1) local hearing with hearing officer designated by Agency Director; (2) Hearing before DSS Board and (3) Petition to Superior Court 13. Local hearing decision will be mailed to participant via certified mail. Participant will have 15 days to request a hearing at the 2nd level, which is before the DSS Board. Failure to request hearing within the 15-day time frame will result in forfeiting their right to appeal local hearing officers’ decision. 14. Agency will assist participants in obtaining verification of citizenship and/or identity CALDWELL COUNTY 1. Applicant is responsible for all verifications needed to complete the application. Caldwell County will assist applicants with disabilities or limited English proficiency upon request. 2. Benefit Diversion may be offered only once every two years. Once a case is approved as Benefit Diversion the family cannot receive diversion assistance again for 2 years after the end of the certification period. 3. An application will be denied if the applicant does not comply with a signed Mutual Responsibility Agreement (MRA) unless there is good cause.

North Carolina 64 4. All applicants must meet and cooperate with child support within 10 calendar days of applying for Work First. Failure to do so will result in the application being denied on the 11th day unless there is good cause. Recipients must continue to cooperate with child support ongoing or the Work First case will terminate unless there is good cause. 5. All applicants, parents, and caretakers unless otherwise specified, must complete the economic budget class with a minimum attendance time of 2 hours within 10 calendar days of applying for Work First. Failure to do so will result in the application being denied on the 11th day unless there is good cause. Attendance will not be required if the applicant has successfully completed the class with a minimum attendance time of 2 hours within 30 calendar days prior to the application date. Non-parent caretakers may be exempt from the budget class per case manager discretion. 6. If both quarterly reporting deadlines are missed without good cause there will be one (1) month of ineligibility. 7. Participants’ statement of kinship will be acceptable at review unless questionable. 8. Cases will not be re-opened unless it is an agency error. The applicant/recipient may reapply for Work First. 9. All income, with the exception of SSI income, will be counted for parents living in the home to determine Work First eligibility 10. Recipients who are no longer eligible for Work First and are then placed on Transitional Medicaid are required to continue cooperation with Child Support if the Transitional Medicaid case remains active. Failure to do so will result in Medicaid benefits terminating for the adult caretaker(s) unless good cause exists. Ongoing Medicaid will be evaluated for the child(ren) in the household. 11. School attendance – The caretaker must provide proof of school attendance for all school-age children at application and review by providing a current report card, attendance summary printout from the school or enrollment verification if a new student in the Caldwell County school system. Work First case managers verify school attendance with school social workers on a monthly basis. Therefore, it is not necessary for the case managers to call the schools when a quarterly report is received. Failure to provide proof of school attendance or verification of enrollment at review results in an incomplete review unless there is good cause. Failure to provide proof of school attendance or verification of enrollment at application results in the application being denied unless there is good cause. All income, except for SSI income, will be counted for parents living in the home to determine Work First eligibility. 12. All children in K – 8th grades cannot have more than ten (10) unexcused absences in a school grading period unless there is good cause. All children in 9th – 12th grades cannot have more than 10 unexcused cumulative class absences in a grading period unless there is good cause. More than ten (10) unexcused absences will result in a sanction of one (1) month of ineligibility or until compliance whichever is greaterall children in the household are receiving SSI benefits will not be eligible for Work First as there is no eligible child in the home. 13. Cases where all children in the household are receiving SSI benefits will not be eligible for Work First as there is no eligible child in the home. 14. Single parents may claim their “S” exemption for the first three (3) months of a child’s life. Once the 12-month lifetime exemption has been exhausted the parent will be required to participate in the employment program as soon as authorization is given from their doctor. Also, if a parent volunteers to participate in the employment program he/she may not reclaim the exemption for the same child.

North Carolina 65 15. All parents in the home must have their GED or high school diploma or be enrolled in a satisfactory attending education enhancement class (i.e., GED, adult high school, English as a Second Language, literacy, etc.) unless there is good cause. Verification of attendance and satisfactory progress will be provided monthly by the parent(s) or the Work First case will terminate unless there is good cause. Work First case managers will use the same GED attendance and progress verification form used for employment cases on all cases where the parent is in the home to measure this requirement. Parents will meet with the case manager monthly and enter into a Mutual Responsibility Agreement (MRA). Parents will be required to complete a minimum of 15 class hours per week unless there is good cause. Success of children depends on them having a good role model representing the importance of education 16. All Work First cases will be reviewed every twelve (12) months. 17. All mandatory able-bodied Work First participants will be required to complete at least 35 hours per week of work or work-related activities to meet participation hours unless there is good cause. 18. All applicants whose Work First case terminated for not completing a review will be required to provide all verifications needed for the review (school attendance, health checkups, immunizations, etc.) when re-applying for Work First Cash Assistance within three (3) months of the termination date. The 3-month time period includes the one (1) month of ineligibility CATAWBA COUNTY 1. To approve a Benefit Diversion application, Applicants must complete the following requirements: A. cooperate with Child Support; B. apply or be receiving Food and Nutrition Services; C. register with Division of Workforce Solutions – NCWorks if not already employed or job being held for the applicant and D. if monetarily eligible for Unemployment Benefits (UIB) must apply for the UIB. 2. Applicant must cooperate with child support within 12-calendar days of applying for Work First cash assistance. If the applicant fails or refuses to do so without good cause, deny the application for Work First cash assistance. 3. Applicant must apply for Medicaid or be receiving Medicaid before applying for Work First. 4. Applicant must be receiving Food and Nutrition Services (FNS) (food assistance) or be evaluated for FNS within 12 calendar days of applying for Work First cash assistance. If the applicant fails or refuses to do so without good cause, deny the application for Work First and notify the Medicaid worker (applicants must apply for Medicaid before applying for Work First cash assistance). 5. All Work First applicants and recipients referred to Vocational Rehabilitation must complete the application and comply with all recommendations. Failure or refusal to comply without good cause will result in the case being denied or terminated. Future eligibility is contingent upon completing application and cooperating with Vocational Rehabilitation. 6. Cases where all children in the household are receiving SSI benefits will not be eligible for Work First as there is no eligible child in the home. This does not apply to Benefit Diversion cases. 7. Eliminate the resources limits for Child Only Cases. The county will follow the state’s standard policy for all other cases.

North Carolina 66 8. When a Work First case is transferred to Catawba County, an appointment will be made for a client to come to the office within ten business days to sign a new MRA and be evaluated for any needed documentation. Failure to keep the appointment will result in the WF case being closed at the end of the current month (unless there is good cause). 9. If a Work First case is closed for any reason (without good cause), the case will not be eligible for re-open. The applicant/recipient may reapply for Work First. 10. All adults in an Employment case must have a High School Degree or equivalent OR be enrolled in a GED or Adult High School classes unless there is good cause. 11. A Child Enhancement fund will be created to work with families in providing financial assistance to enhance the quality of life for the child. Examples: band fees, uniform fees, dues for Girl Scouts/Boy Scouts, etc. 12. Retention Services: Catawba County provides a one-time lump sum Employment Retention Bonus of $400 to Work First participants whose Work First check terminates due to earned income and who remain employed: • With the same employer (unless the change is an improvement), and • Employed full time (30+ hours per week) for four consecutive months following termination of their Work First Cash benefit, and • Income eligible based on the 200% level of poverty worksheet LENOIR COUNTY 1. Applicants, excluding intact families, must cooperate with the Child Support Program before applying for Work First cash assistance. 2. Benefit levels may be adjusted at the Director’s discretion based on the availability of funding. 3. A child may be temporarily absent from the home up to 6 months when placed with a safety resource by Child Welfare, provided that the permanent plan is to return the child to the parent/caretaker within that timeframe and the parent is compliant with the Child Welfare family plan. 4. All unemployed or under-employed adult applicants/participants must register for work at the Lenoir Community College (LCC), NCWorks Career Center and local temporary payment agencies within 2 weeks of their application for Work First cash assistance benefits. Work First Eligible (WFE) participants must complete the Work Keys testing and Key Train on-line classes to obtain necessary skills for their desired field of work. 5. The family is not eligible for Work First cash assistance benefits for 3 months after voluntarily quitting a job, or a WFE work experience placement, voluntarily reducing work hours or abandoning a job without a good cause reason. The family is not eligible for Work First cash assistance for up to 3 months if the parent is fired from a paid job or WFE work experience placement without good cause. Work First cash assistance benefits will terminate if the WFE participant is non-compliant with the MRA for 3 consecutive months. Quitting a job or reducing work hours to attend college, training, or other post-secondary education does not meet the definition of “good cause.” Job abandonment is defined as failing to go to work and failure to notify the employer. For applicants, the 3 months of ineligibility begin the month the parent stops work or the work experience or reduces work hours or rate of pay. For recipients, the 3 months of ineligibility begin the month following expiration of an advance notice. The participant may cure this sanction by returning to work at an

North Carolina 67 equivalent rate of pay and number of work hours compared to the last job. The family is not eligible for Work First cash assistance for up to 3 months if the parent is fired from a paid job or work experience placement unless there is good cause. 6. First level hearings will be heard by Agency Supervisors not involved with Work First cash assistance or WFE. Second level hearings will be heard by the Lenoir County DSS Board. The appellant may petition the Lenoir County Superior Court if dissatisfied with the result of the Level 2 hearing. The Lenoir County DSS Board will serve as hearing officer for Hardship Extensions to the 24 and 60-month time limits. 7. Transportation reimbursement is limited to $8 per day for in county travel and $11 per day for out-of- county travel when the participant provides his/her own transportation. Transportation services for non-custodial parents of a Work First child and non-Work First families with a total income not exceeding 200% of the federal poverty limit are limited to $600 per month up to a maximum of $1200 or 4 consecutive months in a State Fiscal Year. 8. If funding allows, Lenoir County will provide a supplemental payment for up to six months to Safety Resource families with whom children are placed by Child Welfare and when the permanent plan is to return the child(ren) to the parent’s care within 6 months when the family requests assistance, provided the family’s income is below 200% of poverty. This payment is intended to provide the Safety Resource family with additional financial support to care for these additional children and meet the increased expenses associated with bringing a new child or children into the home. The payment may continue for a maximum of six months, until the child(ren) no longer reside with the Safety Resource family, or until available funding is exhausted, whichever occurs first. Payments will be made at the point of placement and at the first of subsequent months. The payment to Safety Resource families will be equal to the child-only Work First payment for the children placed with a safety resource. County MOE and/or Federal TANF funds will support this payment. 9. Single parents of a child less than 3 months old may request an exemption from work requirements up to a maximum of 12 months in a lifetime. LINCOLN COUNTY 1. All applicants seeking Work First cash assistance for children with an absent parent are referred to Child Support immediately after signing an application for Work First. 2. An assessment will be completed for child only cases to include but not limited to: immediate home visits and interviews with all adults and child(ren). These visits will continue at least annually with contacts at least every 6 months. 3. Benefit Diversion requirements will be as follows: able-bodied single parent and two- parent households being considered for Benefit Diversion must have employment (35 hours per week) beginning within 2 weeks of WF application. Benefit Diversion will be approved for 1-3 months depending on circumstances and assessments of needs. 4. Adult Incentive Program – The Road to Success This program will be used to provide incentives to adults participating in employment services. The intent is to reward participants for job readiness skill advancement and extra effort put forth in their search for permanent employment and self-sufficiency. Incentives will be in the form of gift cards that will allow participants to purchase personal items, or to spoil themselves as a result of their successful efforts. There are eight (8) activities along the way and three (3) rewards (See Road to Success at the front of this plan).

North Carolina 68 5. Youth Incentive Program - The youth incentive program is less structured than the adult program to allow for flexibility and each unique child. The incentives are similar and will be given as progress is made toward achieving their educational goals. The social worker will begin engaging with youth aged 14 and up to begin the discussion and goal planning for their future. The purpose of these incentives is to help instill a strong work ethic (success brings reward) at an early age. The program places an emphasis on education or the work experience needed to achieve their future goals and dreams. MACON COUNTY 1. To receive Work First, the children must live with an adult relative who is within a certain degree of kinship: A. Parent, including a biological mother, father, and adoptive parent. B. Legal father or mother, step-parents. C. An alleged father or other alleged paternal relatives. D. Spouses of these individuals also meet kinship even if the marriage has been terminated by death or divorce. E. Grandparents, great-grandparents, great-great-grandparents. F. Uncles or aunts, great uncle or aunt, great-great uncle or aunt, nephew, niece, first cousin. G. Brother, sister, half-brothers, half-sister, step-brother and step-sister. H. Other adults who have court ordered legal custody or legal guardianship of a child. I. Brother, sister, including half-brothers and sisters. Biological parents and relatives are not eligible to receive Work First for a child that has been adopted out of the family. This relative must be providing care for the child on a day-to-day basis and be responsible for ongoing decisions regarding the child’s well-being. A relative who meets the above relationships must be included in the case with the child, unless they are an SSI recipient receiving SSI benefits. 2. All Work First applicants will have a three-month penalty imposed for quitting a job unless “good cause” is established by intake caseworker and supervisor. The ineligibility period is defined as the month of application and the next three months. The individual may reapply for Work First at any time but are not eligible during the job quit penalty period. There is no cure for the job quit penalty once the penalty begins. It continues until the full four months is completed, even if the individual obtains employment. 3. Vendor payments will be agreed upon by the families and DSS and documented in the MRA upon signing that form. Families who fail to complete their required hours as agreed upon in their MRA are in non-compliance. Families must complete the required hours to be eligible to receive the benefit assistance. 4. All Work First work eligible individuals are required to be actively participating in work and work-related activities for a total of 40 hours per week. Participation will be a combination of activities which include but not limited to employment, subsidized employment, vocational training, skills training, education, work experience, substance abuse counseling, mental health, vocational rehabilitation, and job readiness/job search. 5. Reviews for Child-Only cases will be completed every year unless the following circumstances indicate an earlier review: • the child reaches 18 years of age;

North Carolina 69 • the child moves out of the home of the caregiver; or • the death of the caregiver. Macon County will forego the first six-month review as stated in the TANF State Plan and review each case annually. 6. Retention Assistance -The agency will provide assistance to working families for up to 3 months after leaving Work First for work. 7. Macon County elects to retain the work requirement policy for single parents of children under the age of three months. This policy will be limited to a three-month exemptions period per child not to exceed a lifetime maximum of twelve months. WILSON COUNTY 1. In order for a participant to participate in the Family First Program the participant has to be job ready or willing to work on goals toward becoming job ready. A doctor’s note will not be accepted to exempt the participant from participating in work related activities required by Family First policy. The participant will be required to participate in required employment related activities determined by the participant and social worker on the MRA. If the participant needs assistance with the disability process they can be assessed for the Disability Program if there is space and funding available. They will not be eligible for the Family First Program (either Phase) if they are not job ready, willing to work, and able to complete work related hours. 2. Wilson County is requesting that NC DHHS implement a federal demonstration waiver to disregard TANF incentive payments as countable income in the following federal programs: SNAP, Medicaid, housing assistance, whether federal state or private, for participant s participating in Family First Phase Two, Kinship Program or the Disability Program. This is to mitigate the “Cliff Effect” where federal programs work against each other in helping the participant rather than as a collective transition out of poverty. The purpose of the program is to work toward family goals, employment and financial stability with the participant and not have policies in place that will harm or penalize the family for involvement. The waiver will be effective as long as the participant s is enrolled and participating in these Wilson County programs. Current federal policy will resume and be enforced once the case is closed. We realize this is a “moving the mountain” level request but know the secret to a 100-mile journey is in taking the first step. 3. There will be no restriction in countable months of education. participant needs to be progressing and passing classes with C average or above. 4. In the Family First Redesign participant s will receive incentives after the MRA goals are met and completed. Job Bonus participant s will also receive an additional incentive payment. Once a participant obtains employment an incentive will be provided for retaining the job at three and six months. 5. Social worker and SW Supervisor have the final determination in denial of incentive in goals that are not met or complete or participant is not participating or complying with the program policies. 6. If the participant is not cooperative or compliant with Phase Two policy (continual aggressive behavior, not meeting goals, not showing up for appointments without good cause as defined in Family First policy, etc) they will be moved to Phase One

North Carolina 70 and not eligible to return to Phase two during their current 24-month state time clock period. An approval to be reassessed for Phase 2 will have to be determined by the social worker and the social work supervisor if the participant returns to begin another 24 months (after off of the program for a year or more). The participant will not be eligible if it is during the last 12 months on their state/federal timeclock if they have been previously moved to Phase One because of behavior issues or noncompliance. 7. Any participant s with exemptions (per Family First state policy) can participate in Phase One or Disability (if caring for a child) but are not eligible for Phase Two until the medical issue is resolved and they are ready for transition to employment. 8. There will be no hearings or appeals for Phase Two. Phase One will continue with the state (and electing county) policy appeals process. 9. As long as the child is enrolled in high school and attending regularly they can remain on the case regardless of age until they graduate. 10. Child Only participants will receive incentive payments for goals met in an MRA in addition to their regular Family First Payment if they are working with the Kinship Social Worker. 11. Allow women who have verified their pregnancy by a medical provider to apply for Family First. A medical form, provided by Family First worker, must be signed by an MD, PA-C or FNP-C. Participation in agency parenting classes, verification of ongoing medical care and compliance with prenatal care will be required in order to receive monthly benefits. Once the child is born participant must comply with federal policy regarding child support compliance. Participant must also complete federal work requirements. 12. All Family First “work eligible” individuals are required to be actively participating in work- and work-related activities for a minimum of 35 hours per week. Participation will be a combination of activities which include but not limited to employment, subsidized employment, vocational training, skills training, education, work experience, substance abuse counseling, mental health, vocational rehabilitation, job readiness/job search, etc. Participants will be required to establish the first 20 hours of their participation in “federally countable activities” as stated in the NC Family First Policy. Education will be supported in combination with other federal countable work activities. In two-parent households, both parents in the case must be work eligible. The parents may combine their hours to meet the required average of 35 per week, or 55 hours if they receive federally funded childcare. 13. Offer 200% services to TANF families who do not receive Family First cash assistance to ensure that all family members are progressing educationally and economically through intense case management services. We want to continue efforts to help parents and their children achieve a high school diploma, prevent pregnancy or repeat pregnancy. 14. Phase One and Phase Two Family First cases will be kept open until 90 days of not receiving Family First Benefits. (This includes the month of application if employment services are being offered.) All applicants sign agreement at application stating they

North Carolina 71 understand how this may affect their child support payments. Activities must be started within 90 days of application date. 15. All Family First participant’s whose employment results in termination of their Family First benefits or who are receiving Job Bonus will be referred to our Financial Social Work Services to develop a Financial Education and Savings Plan. 16. All Family First cases will adhere to an eligibility review at least once every 12 months. Families are still expected to report changes or when information is received by other sources the eligibility worker may request a review more often if needed. 17. All Child Only Kinship Care cases that have a prior involvement with CPS, Prevention, Juvenile Justice or Foster Care within the last 6 months will be required to comply with the Kinship Care Family Assessment. For families/children determined “at risk” of abuse, neglect, dependency or disruption of placement will be recommended for services. Services include on-going case management, strengths and needs assessment, referral services, advocacy, counseling, monitoring, etc. 18. All Child Only Family First Family Assistance cases with children age 6-17 who are not attending school regularly OR whose grades are not on grade level will be required to comply with the Kinship Care Family Assessment. The goal is to help identify possible educational interventions to avoid children falling below grade levels and ultimately dropping out of school. Resources and services will be provided based on outcomes of the assessment and participation of both the child and caretaker. Caretakers who do not comply with the school requirements, and participate in the Kinship Care Family Assessment and who are determined to not have good cause will be sanctioned and may not be eligible to receive Family First payment (Family First Manual Sect 103). 19. Eliminate resource limit for families applying for Family First and money deposited into a bank account to which the household has access (ie. lump sums such as taxes and child support). APPENDIX D. SUMMARY OF PUBLIC COMMENTS RECEIVED In compliance with federal and state statutes, the North Carolina Temporary Assistance for Needy Families (TANF) State Plan for FFY 2023-2025 was initially posted on the DHHS website for public comment October 20, 2022 – December 4, 2022, for the required 45- day period.