By Holzheauser H.B. No. 2148
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the establishment, operation, and funding of a full
1-3 employment pilot program to assist certain persons receiving AFDC
1-4 benefits, food stamp benefits, or unemployment compensation
1-5 benefits.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. It is the purpose of this Act to reduce, among
1-8 Texas residents, the need for welfare and the dependence welfare
1-9 induces, and to that end there is hereby created a demonstration
1-10 program to be known as the Full Employment Program, hereinafter
1-11 referred to as the "Program." The Program shall be a three year
1-12 test in six counties of the effects of replacing certain welfare
1-13 and unemployment insurance benefits with guaranteed paid
1-14 employment. During the test, normal Aid to Families with Dependent
1-15 Children (AFDC), unemployment compensation, and Food Stamp benefits
1-16 shall be suspended in the designated counties. Persons otherwise
1-17 eligible for those benefits, and others in need of work, shall be
1-18 eligible for the Program. The Program shall assign them to
1-19 wage-paying public and private sector jobs designed to increase
1-20 their self-sufficiency and improve their competitive position in
1-21 the work force.
1-22 SECTION 2. (a) The Texas Department of Human Services, in
1-23 conjunction with The Texas Employment Commission, shall amend the
2-1 AFDC, Job Opportunities and Basic Skills (JOBS), and Food Stamp
2-2 state plans to incorporate the Program as the Texas JOBS program
2-3 for the test counties, and shall obtain federal approval of plan
2-4 amendments.
2-5 (b) The Texas Department of Human Services shall obtain any
2-6 exemptions and waivers from federal statutes and regulations
2-7 necessary to qualify the Program as a federally-approved
2-8 demonstration project under Section 1115 (42 U.S.C. 1315) of the
2-9 Social Security Act and Section 17 (7 U.S.C. 2026) of the Food
2-10 Stamp Act, and to ensure that wages paid by the Program to its AFDC
2-11 and Food Stamp-eligible participants are deemed by the federal
2-12 government an acceptable alternative form of AFDC and Food Stamp
2-13 benefits for purposes of the demonstration.
2-14 (c) If amendments to federal statutes are required for
2-15 implementation of the Program, the Texas Department of Human
2-16 Services shall seek such amendments.
2-17 (d) The purpose of this section is to facilitate
2-18 implementation of the Program at the earliest possible date and
2-19 with maximum federal financial participation. To that end the
2-20 Texas Department of Human Services is directed to expedite plan
2-21 amendment, waiver acquisition, and statute amendment activities in
2-22 close and constant coordination with appropriate federal officials,
2-23 and to prepare and submit completely and in a timely manner all
2-24 forms and data required by those officials.
2-25 SECTION 3. (a) The Texas Department of Human Services shall
3-1 designate the pilot counties, administer the Program and promulgate
3-2 state regulations for operation of the Program.
3-3 (b) In administering the Program, the Texas Department of
3-4 Human Services shall actively encourage both public and private
3-5 employers to utilize Program participants, and shall ensure that,
3-6 to the extent feasible, Program job assignments match participant
3-7 skills and experience with the needs of the employers.
3-8 (c) The target goals for the Program are to reduce the AFDC,
3-9 Food Stamp and unemployment compensation caseloads in the pilot
3-10 counties by fifty (50) percent by the end of the third year of the
3-11 pilot test, and to reduce the costs associated with these programs
3-12 by twenty five (25) percent over the three year pilot test period.
3-13 To the maximum extent permitted by federal law, and not
3-14 withstanding other provisions of Texas law, the Texas Department of
3-15 Human Services shall, through competitive procurement, engage the
3-16 services of qualified public and private organizations to operate
3-17 the Program and to provide services incident to such operation, and
3-18 shall incorporate in the resultant contracts, to the extent
3-19 feasible, performance-based incentive payments related to
3-20 accomplishment of Program goals.
3-21 SECTION 4. (a) There shall be created, within 60 calendar
3-22 days of enactment of this Act, a Full Employment Program Review
3-23 Commission, hereinafter referred to as "Review Commission" to
3-24 consist of five members: two, including the chairman appointed by
3-25 the lieutenant governor, two appointed by the speaker of the house,
4-1 and one appointed by the governor. Terms of appointment shall be
4-2 three years. At least two members, one appointed by the governor
4-3 and one appointed by the speaker of the house, shall be current or
4-4 former recipients of AFDC, Food Stamps, or unemployment
4-5 compensation.
4-6 (b) The Review Commission shall monitor Program progress,
4-7 assess Program effectiveness, and both receive and develop
4-8 recommendations for Program improvement. The Review Commission
4-9 shall meet no less frequently than once every three months during
4-10 the period of Program operations and shall report annually its
4-11 findings and recommendations to the legislature, the governor, and
4-12 the executive director of the Texas Department of Human Services
4-13 and the executive director of the Texas Employment Commission.
4-14 (c) The Texas Department of Human Services shall provide
4-15 administrative support to the Review Commission, and shall respond
4-16 in writing to Review Commission recommendations within thirty days
4-17 of receipt.
4-18 SECTION 5. (a) There shall be created, in each pilot county
4-19 and within 60 calendar days of enactment of this Act, a Full
4-20 Employment Program Local Implementation Council, hereinafter
4-21 referred to as the "Local Implementation Council" to consist of
4-22 seven county residents, appointed by the county commissioners.
4-23 Terms of appointment shall be three years. At least two members
4-24 shall be current or former recipients of AFDC, Food Stamps, or
4-25 unemployment compensation.
5-1 (b) The Local Implementation Council in each test county
5-2 shall establish, consistent with this Act and with regulations
5-3 promulgated by the Texas Department of Human Services to carry out
5-4 this Act, policies and procedures for operation of the Program
5-5 within that county.
5-6 (c) The Local Implementation Council in each test county may
5-7 authorize, on a case by case basis, supplemental benefits from the
5-8 Program to meet hardship conditions among Program participants as
5-9 defined by the Local Implementation Council. Such hardship
5-10 conditions shall include, but may not be limited to, reductions in
5-11 usable income to larger families as a result of Program wages being
5-12 less than previously-received benefits from AFDC, unemployment
5-13 compensation, and Food Stamps.
5-14 (d) The Local Implementation Council in each test county
5-15 shall monitor the operations of the Program for that county, and
5-16 make recommendations to the Review commission for improved Program
5-17 efficiency and effectiveness.
5-18 (e) The Texas Department of Human Resources shall provide
5-19 administrative support to each Local Implementation Council.
5-20 SECTION 6. (a) There is hereby created a Full Employment
5-21 Program Special Fund, hereinafter called the "Program Special
5-22 Fund", as a special trust fund in the custody of the state
5-23 treasurer separate and apart from all public money or funds of this
5-24 state. The Program Special Fund shall be administered by the Texas
5-25 Department of Human Services. The fund is composed of:
6-1 (1) money transferred to the fund from the Smart Jobs
6-2 Fund, (Sec. 481.154, Government Code);
6-3 (2) all funds appropriated for expenditure by or
6-4 apportioned to Texas for operation of AFDC, JOBS, and Food Stamp
6-5 programs in the pilot counties;
6-6 (3) gifts, grants, and other donations received by the
6-7 Texas Department of Human Services or the Texas Employment
6-8 Commission for the fund;
6-9 (4) any amounts appropriated by the legislature for
6-10 the Program; and
6-11 (5) all payments by participating employers to the
6-12 Texas Department of Human Resources for specially skilled Program
6-13 Participants as described in Section 7(b) of this Act.
6-14 (b) The amount of funds necessary to implement provisions of
6-15 this Act, to be transferred to the Program Special Fund from the
6-16 Smart Jobs Fund, shall be determined by the Department of Human
6-17 Services in conjunction with the Texas Employment Commission.
6-18 (c) In administering the Program Special Fund, the Texas
6-19 Department of Human Services in conjunction with the Texas
6-20 Employment Commission shall, consistent with other provisions of
6-21 this Act and to the extent permitted by federal law, maximize the
6-22 use of federal apportionments for the Food Stamp, AFDC, and JOBS
6-23 programs.
6-24 SECTION 7. (a) Any resident of the pilot counties who is
6-25 eighteen years of age or older shall be eligible to participate in
7-1 the Program. Pilot county residents between sixteen and eighteen
7-2 years of age shall be eligible for summer work in the Program.
7-3 There shall be no other eligibility requirements or limitations,
7-4 and no one shall be required to participate. Eligible individuals
7-5 choosing to participate:
7-6 (1) shall be entitled to a maximum of forty hours per
7-7 week of employment in Program jobs, as available, and shall be paid
7-8 by the Texas Department of Human Services from the Program Special
7-9 Fund at the hourly rate of ninety percent of the Texas minimum
7-10 wage, or the federal minimum wage, whichever is higher, except that
7-11 specially skilled participants may be paid a higher wage, as
7-12 outlined in Section 7(b) of this Act, but only if employers have
7-13 need for such labor and specifically request it;
7-14 (2) may, at any time, choose to terminate
7-15 participation in a Program job assignment;
7-16 (3) may, at any time, be terminated by the employer;
7-17 and
7-18 (4) shall be paid wages subject to federal and state
7-19 income and social security (FICA) taxes, which the Texas Department
7-20 of Human Services shall withhold and pay in accordance with federal
7-21 and state law.
7-22 (b) For specially skilled participants, employers shall pay
7-23 the Texas Department of Human Services an hourly rate equivalent to
7-24 that received by skilled temporary employees for comparable work
7-25 within the pilot county, as determined by the Texas Department of
8-1 Human Services in conjunction with the Texas Employment Commission,
8-2 and the Texas Department of Human Services shall pay a specially
8-3 skilled participant seventy-five percent of the rate charged the
8-4 employer for the utilization of such skilled labor. For any
8-5 specific skilled labor assignment, the higher rate of pay shall
8-6 apply only while the participant is performing the skilled labor
8-7 requested by employer and only for a period of time not to exceed
8-8 180 calendar days.
8-9 (c) The Texas Department of Human Services shall endeavor to
8-10 keep Program job assignment terminations by employers to a minimum
8-11 and, when they occur, the department, in conjunction with the Texas
8-12 Employment Commission, shall expeditiously provide new jobs for the
8-13 participants and new participants for the employers.
8-14 (d) Workers' compensation taxes and the employers' share of
8-15 social security taxes shall be paid from the Program Special Fund.
8-16 (e) Assignment of participants to available jobs shall be
8-17 made on the basis of a preference schedule developed by the Texas
8-18 Department of Human Services, with priority given to employing
8-19 those receiving AFDC, Food Stamp, or unemployment compensation
8-20 benefits. Those benefits shall be suspended when a Program job is
8-21 offered to an unemployment compensation recipient, the custodial
8-22 parent in an AFDC family, or any adult member of a Food Stamp
8-23 household, and the suspension shall occur immediately whether or
8-24 not the offer is accepted.
8-25 (f) Custodial teen-aged parents through nineteen years of
9-1 age receiving AFDC, Food Stamp, or unemployment compensation
9-2 benefits may choose, when offered a Program job, to substitute up
9-3 to thirty hours per week attendance at an accredited secondary
9-4 school, with normal Program wages to be paid for such attendance so
9-5 long as the participant is making acceptable progress toward a high
9-6 school diploma or GED certificate.
9-7 (g) Program participants who demonstrate substance abuse or
9-8 other work-limiting problems may be assigned by the Texas
9-9 Department of Human Services to rehabilitation facilities to
9-10 receive appropriate counseling and training, with time spent in
9-11 such activities compensated at the normal Program wage rate so long
9-12 as the participant is making acceptable progress toward
9-13 employability, but in no case for a period of time exceeding ninety
9-14 calendar days.
9-15 (h) Food stamp recipients in the pilot counties whose Food
9-16 Stamp eligibility stems from eligibility for Supplemental Security
9-17 Income (SSI) benefits shall not be offered employment by the
9-18 program, and thus shall not have their Food Stamp benefits
9-19 suspended. However, during the three-year Program test, such Food
9-20 Stamp benefits shall be distributed in the form of cash rather than
9-21 coupons.
9-22 (h) Program participants who are Medicaid-eligible at the
9-23 time they enter the Program shall remain Medicaid-eligible, but
9-24 only until the earlier of:
9-25 (1) the date the participant receives alternative
10-1 health insurance benefits; or
10-2 (2) the date the participant no longer participates in
10-3 the Program.
10-4 (i) Participants needing child care shall be provided child
10-5 care through the Program, but only until the earlier of:
10-6 (1) the date the participant receives alternative
10-7 child care services; or
10-8 (2) the date the participant no longer participates in
10-9 the Program.
10-10 SECTION 8. (a) Every employer subject to the Texas
10-11 unemployment tax, shall be eligible for assignment of Program
10-12 participants, but no employer shall be required to utilize such
10-13 participants.
10-14 (b) Employers participating in the Program:
10-15 (1) shall provide on-the-job training to the degree
10-16 necessary for the participants to perform their duties;
10-17 (2) shall recruit volunteer mentors from among their
10-18 regular employees to assist the participants in becoming oriented
10-19 to work and the work place; and
10-20 (3) shall insure that jobs made available to Program
10-21 participants are in conformity with:
10-22 (A) Section 3304(a)(5) of the Federal
10-23 Unemployment Tax Act; and
10-24 (B) other applicable Federal Employment
10-25 regulations.
11-1 SECTION 9. (a) At least quarterly during the three year
11-2 pilot test period of the Program, the Texas Department of Human
11-3 Services shall report the status and progress of the Program to the
11-4 Review Commission, the legislature, and the governor.
11-5 (b) Six months prior to the end of the three year pilot test
11-6 period, the Texas Department of Human Services shall submit a
11-7 written report to the Review Commission, the legislature, and the
11-8 governor, containing a full and complete description and analysis
11-9 of program operations and results. Such report shall include
11-10 recommendations from the Texas Department of Human Services as to
11-11 the potential for statewide implementation of the Program.
11-12 (c) The formal evaluation of the Program shall be conducted
11-13 by an independent evaluator reporting to the Review Commission.
11-14 The evaluation may be based on group comparison, survey, and
11-15 individualized event and attitude recording techniques.
11-16 Performance in attaining Program goals in each pilot county may be
11-17 matched against performance using the traditional welfare and
11-18 employment counseling practices in a comparison county of similar
11-19 size and with similar welfare and employment characteristics. In
11-20 addition, the composite performance of the pilot counties may be
11-21 compared to the remainder of the state. In no case shall
11-22 experimental design be used for evaluation of the Program.
11-23 SECTION 10. This Act takes effect September 1, 1993.
11-24 SECTION 11. The importance of this legislation and the
11-25 crowded condition of the calendars in both houses create an
12-1 emergency and an imperative public necessity that the
12-2 constitutional rule requiring bills to be read on three several
12-3 days in each house be suspended, and this rule is hereby suspended.