BILL ANALYSIS



H.B. 1863
By: Hilderbran, Stiles, et al
3-29-95
Committee Report (Substitute)


BACKGROUND

     The Aid to Families with Dependent Children (AFDC) program
provides cash assistance to families with children who are deprived
of financial support due to the absence, death, disability, or
unemployment of one or both parents.  Approximately 225,000 Texas
families receive welfare in Texas, with the typical AFDC family in
Texas consisting of a single mother and her two children.  

     Following standards established in federal laws and
regulations, states determine a welfare recipient's eligibility and
calculate the payment rate.  Texas applies one of the most
stringent income tests in the nation.  While the AFDC family grant
averages $388 per month nationally, the average Texas grant amounts
to $188 per month, or about $58 per person.  Funds for AFDC grants
derive from state and federal sources, with state general revenue
matched at a rate of 64% federal and 36% state funds.

     AFDC eligibility also entitles a family to additional public
assistance in the form of food stamps, medical assistance
(Medicaid), and work skills training or education through the
federal Job Opportunities and Basic Training Skills (JOBS) program,
and related support services of child care and transportation.  All
caretakers aged 16-60 must participate in the JOBS program unless
have children under the age of three, are attending public school,
or are ill or incapacitated themselves or caring for a household
member who is ill or incapacitated.  Begun in 1990, JOBS serves
approximately 39,000 Texas clients each month.  The program's
funding stems from state  and federal sources.  Texas, however, has
failed to draw down its full allotment in any year.


PURPOSE

     House Bill 1863, as substituted, would establish a new system
to encourage families receiving AFDC to move toward self-sufficiency by eliminating barriers to employment and disincentives
that currently exist current welfare laws and regulations.  This
omnibus bill would place a cap on a welfare family's size; require
the recipient to meet certain conditions for continued eligibility
and sign an agreement of consent; require the state provide job
training, education and other services, subject to the availability
of funds; incorporate a time-limited approach with regards to a
mandatory work program for AFDC families (including transitional
benefits), based upon an assessment of each families' needs;
strengthen child support enforcement efforts through license
suspension for delinquent obligors and intervention for
noncustodial parents.  

     The bill also permits local workforce development board to
provide job training for AFDC recipients as well as supported
employment for people with disabilities through demonstration
projects; numerous pilot projects are authorized.  Expansion of the
state's use of Emergency Assistance funding for mental health,
substance abuse, foster care and educational services is
authorized.  Attempts at integrating eligibility, privatizing
certain services, preventing fraud and reducing error are
authorized.  And finally, the Health & Human Services Comm'n would
perform duties relating to approval of workload standards,
transfers of funds and strategic plans, leasing of office space,
and loan of agency staff would be permitted.



RULEMAKING AUTHORITY

     In Texas, the Department of Human Services (DHS) administers
the AFDC program.  C.S.H.B. 1863 would expand DHS' authority to
amend or adopt rules as necessary to implement the provisions of
the bill.  C.S.H.B. 1863 grants new rulemaking authority to DHS (or
other agencies) in the following sections:  SECTIONS 1.02(b) in
Sec. 31.003; 1.04 in Sec. 31.010(d); 2.02 in Sec.
31.0031(b)(3),(b)(6), (b)(8), (c)(DHS, in conjunction with TCADA),
(d)(DHS, in conjunction with Central Education Agency), and (e),
Sec. 31.0033(d); 2.03 in Sec. 11.2093; 2.04 in Sec.
31.015(a)(TCADA), (a)(2)(DHS, in conjunction with TCADA), (b)(by
TCADA, in conjunction with DHS); 3.01 in Sec. 31.0065(a); 3.02 in
Sec. 31.0035(a); 3.03 in Sec. 32.0255(a)(the bill does not identify
the specific agencies that would be involved); 4.01(a) in Sec.
31.012(b) and 4.01(c); 4.03 in Sec. 31.0126(a)(DHS, in cooperation
with the state agency charged with primary responsibility for job
training, employment, and workforce development) and (c); 5.05(a)
in Sec. 76.116 (by the Title IV-D agency); 7.06(c); 7.07(b); 8.10
in Sec. 31.0325(a)(DHS, in conjunction with other appropriate, but
unidentified agencies) and (b).


SECTION BY SECTION ANALYSIS

ARTICLE 1.  FAMILY GRANT; SUPPORT SERVICES; PARENTING SKILLS
TRAINING; RESOURCE LIMITS

SECTION. 1.01.  PRIORITY OF ASSISTANCE.  Amends Sec. 31.001, Human
Resources Code, by directing the Department of Human Services
(DHS), in administering aid, to give first priority to unemployed
adult recipients in finding and retaining a job.

SECTION 1.02.  FAMILY GRANT.  Amends Sec. 31.003, H.R. Code, as
follows:  

(a)  Sec. 31.003.  AMOUNT OF FINANCIAL ASSISTANCE.  

     (a)  Continues previously delegated rulemaking authority for
DHS with regard to the amount of the grant, but prohibits DHS from
providing additional AFDC benefits for children born more than 10
months after the family initially becomes eligible for financial
assistance.  An exception is permitted for a mother who has been
off the AFDC rolls for 12 months and reapplies for AFDC.  
     (b)  Directs DHS when calculating the amount of the family's
grant to make deductions and increase the disregard by $30 if the
mother is employed.  Strikes provisions (b) and (c) allowing the
Dept. to establish grant levels.

(b)  Sec. 31.003.  AMOUNT OF FINANCIAL ASSISTANCE.  As an
alternative, removes DHS' rulemaking authority to establish a
family's grant, and sets the grant in statute at a maximum of $184
per month--or for the support of dependent children in the care of
a "payee" rather than a parent, at 70% of the maximum amount--regardless of the number of dependent children in the family. 
However, allows DHS by rule to set a higher grant level for
families headed by a caretaker who has a physical or mental
disability.  Strikes (b) and (c) allowing DHS to establish grant
levels.

(c)  Subsection (b) would only take effect if a federal court or
appellate court rules Subsection (a) to be invalid.
(d)  Effective date, applies to AFDC paid on or after Sept. 1,
1995.

SECTION 1.03.  NEEDS ASSESSMENT.  Adds new Sec. 31.0095, H.R. Code,
instructing DHS to assess each AFDC family's needs and develop an
employability plan.

SECTION 1.04.  SUPPORT SERVICES.  Amends Sec. 31.010, H.R. Code, by
labeling current provision (a) and adding subsections (b) through
(e), as follows:  (a)  Subject to the availability of funds, requires DHS to provide
AFDC recipients and their families with the services needed to
achieve independence from public assistance.  
(b)  Requires DHS to consider the needs assessment and
employability plan in determining what support services are needed.
(c)  Lists support services, including job placement, work skills
training, education, child care, and transportation, among others.
(d)  Permits DHS by rule to provide for the implementation of
support services.
(e)  Allows DHS to contract out with any public or private entity
for the provision of services.

SECTION 1.05.  PARENTING SKILLS TRAINING; SAFETY OF CHILDREN. 
Amends Sec. 31.0135(a), H.R. Code, by requiring DHS, in cooperation
with the Education Agency (TEA), Dept. of Protective & Regulatory
Services, TX Agricultural Extension Service, or other public or
private entity, to develop a parenting skills training program,
including topics such as nutrition, budgeting, and physical and
emotional safety for children.

     (b)  Requires all AFDC caretakers--not just teen parents--to
receive training in parenting skills, as needed.
     (c)  Defines "caretaker relative."

SECTION 1.06.  TEENAGE PREGNANCY.  Amends Sec. 31.0315, H.R. Code,
by adding a new subsection (f) which instructs the Title IV-D
agency, the Texas Attorney General (AG), to refer to local law
enforcement agencies cases of statutory rape which may result in
child AFDC recipients.

SECTION 1.07.  RESOURCE LIMITS FOR AFDC RECIPIENTS.  Amends Sec.
31.032, H.R. Code, by adding new subsections (d) and (e) as
follows:

     (d)  Lists the resources or assets DHS must exclude when
calculating benefits, including a cash amount of $2,000 (or $3,000
if person has disability or elderly person in the household) and
fair market value of one motor vehicle, according to a schedule. 
These limits track the U.S.D.A. regulations for the food stamp
program.
     (e)  Permits DHS to adjust standards if the federal
regulations are revised. 

ARTICLE 2.  RESPONSIBILITY AGREEMENT.

SECTION 2.01.  APPLICATION FOR ASSISTANCE.  (a)  Amends Sec.
31.031, H.R. Code, by adding (c), (d) and (e) as follows:   

     (c)  Requires DHS to require that applicants for financial
assistance show proof that each AFDC recipient meets certain
citizenship and immunization standards.
     (d)  Requires DHS to explain to applicants the work
requirements, time limits and other portions of the agreement and
the AFDC applicant must sign the agreement.
     (e)  The agreement must list the state's responsibilities and
provide case information. 

(b)  Applies to applicants on or after the bill's effective date.

SECTION 2.02.  RESPONSIBILITY AGREEMENT.  (a)  Amends Chapter 31,
Human Resources Code, by adding new Sections 31.0031, .0032 and
.0033 to read as follows:

Sec. 31.0031(a)  Prohibits DHS from providing AFDC unless
applicants comply with every part of the responsibility agreement.

     (b)  Requirements include:
           (1) cooperating in the determination of a
           dependent child's  paternity;
           (2) receiving EPSDT and immunizations, if
           needed and    accessible;
           (3) not quitting a 30-hour-per-week job,
     according to rules adopted         by DHS;
           (4) participating in activities leading to
           self-sufficiency, such  as education, job
           placement, volunteering or community   service;
           (5) abstaining from using, selling or
     possessing marijuana or controlled           substances;
           (6) complying with random screening for
           illegal drugs,     according to DHS rules on
           testing;
           (7) attending school regularly;
           (8) complying with DHS rules on school
           attendance; 
           (9) attending parenting skills training.

     (c)  Grants DHS, in conjunction with the Texas Commission on
Alcohol & Drug Abuse (TCADA), rulemaking authority relating to
random screening.
     (d)  Permits DHS, in conjunction with the Central Education
Agency (TEA), authority to make rules relating to school attendance
requirements.
     (e)  Exempts caretakers of children age 5 and under, if all
slots in the JOBS program are filled.   However, if slots are
available, DHS, by rule, may establish a process to enroll
caretakers with younger children.
     (f)  Defines "caretaker relative."

Sec. 31.0032.  BENEFITS WITHHELD.  (a)  Permits DHS to withhold the
AFDC grant from recipients who do not comply with the terms of the
responsibility agreement, unless they can show good cause.

     (b)  Requires DHS to notify the carertaker regarding
withholding of benefits.

Sec. 31.0033.  GOOD CAUSE NONCOMPLIANCE HEARING.  (a)  Permits
recipients to request a hearing to show good cause for
noncompliance with the responsibility agreement;

     (b)  Requires DHS to hold a hearing promptly if a timely
request is made; 
     (c)  Directs DHS to withhold assistance until the recipient
comes into compliance with the terms of the agreement;  
     (d)  Delegates to DHS rulemaking authority to establish
criteria for good cause noncompliance.

(Sec. 2.02 continued)
(b)  Transition language, applying provisions of responsibility
agreement to persons who apply for AFDC after the bill's effective
date.
(c)  Requires DHS to have recipients who are renewing AFDC benefits
to sign the agreement at renewal time to continue to receive
benefits; prohibits DHS from enforcing terms of agreement on person
who has not signed.

SECTION 2.03.  CONFORMING AMENDMENT:  MANDATORY SCHOOL ATTENDANCE. 
Amends Chapter 11 of the Education Code by adding a new Sec.
11.2093 as follows:

Sec. 11.2093.  ATTENDANCE RECORDS:  AFDC RECIPIENTS.  Instructs TEA
to cooperate with DHS in providing applicants with the records
necessary to prove school attendance by dependent children and teen
parents, in accordance with rules adopted by DHS.

SECTION 2.04.  MANDATORY SUBSTANCE ABUSE SCREENING.  Amends Chapter
31, H.R. Code by adding new Sec. 31.015 as follows:

Sec. 31.015.  MANDATORY SUBSTANCE-ABUSE SCREENING.  

     (a)  If TCADA determines, under rules adopted by TCADA, that
a caretaker is using marijuana or other controlled substances, the
recipient must:

           (1)  undergo screening for such dependency
           and maintain satisfactory progress in an
           appropriate treatment program, subject to
           the availability of funds; and
           (2)  comply with rules adopted by DHS in
           conjunction with the TX Comm'n on Alcohol &
           Drug Abuse relating to random screening for
           substance abuse.

     (b)  Grants TCADA the authority to adopt rules, in conjunction
with DHS, relating to determination of substance abuse dependency,
screening and treatment.
     (c)  Instructs DHS not to provide AFDC benefits to recipients
who fail to comply.
     (d)  Defines "caretaker relative."

(b)  Applies to persons receiving AFDC on or after the bill's
effective date.
(c)  Provides for implementation on a gradual basis from the bill's
effective date.

ARTICLE 3.  TIME-LIMITED AND TRANSITIONAL BENEFITS.

SECTION 3.01.  TIME-LIMITED BENEFITS.  (a)  Amends Chapter 31, H.R.
Code by adding new Sec. 31.0065 as follows:

Sec. 31.0065(a)  Instructs DHS to provide AFDC in accordance with
the time limits laid out below; permits DHS by rule to make
exceptions in cases of personal hardship or community economic
factors which prevent recipients from working or when the state
cannot provide support services.

     (b)  Directs DHS to limit AFDC and transitional benefits based
on recipients' education and prior work experience, as follows:

     (1)  6 months of cash benefits, 6 months transitional benefits
for caretakers who have a high school diploma or equivalent and
work experience lasting 18 months or more.
     (2)   12 months of cash benefits, 6 months transitional
benefits for caretakers who have either a high school diploma or
equivalent or work experience lasting 18 months or more.
     (3)   24 months of cash benefits, 12 months transitional
benefits for caretakers who have completed three years of high
school or worked 6-18 months.
     (4)   36 months of cash benefits, but no transitional benefits
(unless the recipient becomes employed in which case 12 months of
transitional benefits are allowed) for caretakers who have less
than three years of high school education and less than six months
work experience.  

     (c)  DHS must perform an in-depth needs assessment when
persons in Group (4) apply for AFDC and refer such clients to the
appropriate services.  However, their time limit does not begin
until 12 months after the assessment is completed.  
     (d)  Time limits commence when recipients receive notice
regarding the work or employment activity.
     (e)  When evaluating a recipient with regard to time-limited
benefits, DHS must consider the person's needs assessment and the
prevailing local economic/employment conditions.

(b)  Directs DHS to implement the time limits statewide on a
gradual basis.

SECTION 3.02.  Amends Chapter 31, H.R. Code, by adding Sec. 31.0035
as follows:

Sec. 31.0035.  TRANSITIONAL CHILD-CARE SERVICES.  (a)  Requires
DHS, by rule, to provide transitional child-care services to
persons who are no longer eligible for AFDC because their household
income increased due to employment or their time limits were
exhausted.

(b)  Allows DHS to provide prescribed limited benefits according to
schedule above or 12 months of benefits.

SECTION 3.03.  Amends Chapter 32, H.R. Code, by adding Sec. 32.0255
as follows:

Sec. 32.0255.  TRANSITIONAL MEDICAL ASSISTANCE.   (a)  Requires the
state, without identifying the specific agencies involved, to
provide transitional medical assistance (Medicaid) services, in
accordance with state rules and federal laws, to persons who are no
longer eligible for AFDC because their household income increased
due to employment or their time limits were exhausted.

(b)  Allows DHS to provide prescribed limited benefits according to
schedule above or 12 months of benefits.

ARTICLE 4.  WORK PROGRAMS.

SECTION 4.01.  EMPLOYMENT OR VOLUNTEER WORK PROGRAM.  Amends Sec.
31.012, H.R. Code as follows:

Sec. 31.012.  MANDATORY WORK OR PARTICIPATION IN EMPLOYMENT
ACTIVITIES THROUGH THE JOBS PROGRAM.  (a)  DHS must require adult
AFDC recipients to work not less than 30 hours per week or
participate in a JOBS activity not less than 20 hours per week,
during any one-month period; strikes provision on discontinuance of
federal funds for JOBS program.

     (b)  Permits DHS to make rules to establish good cause
noncompliance with the work requirement.
     (c)  Exempts caretakers of children age five and under; but if
they choose to volunteer, provides an additional 6 months of
transitional benefits as an incentive.

(b)  Applies work requirements to people receiving AFDC on or after
Sept. 1, 1995.
(c)  Requires DHS to adopt rules relating to good cause
noncompliance by Dec. 1, 1995.

SECTION 4.02.  VOLUNTEER WORK EXPERIENCE PROGRAM.  Amends
Subsections (a), (b) and (d) of Sec. 31.0125, H. R. Code,
continuing DHS' current rulemaking authority to operate the
volunteer program, but strikes the word "community" and substitutes
"volunteer".

(c)  Expands the volunteer work experience program to include
opportunities in local government offices, the private sector or
nonprofit organizations in addition to public entities as sites for
recipients to obtain work skills training.  Deletes the provision
requiring contracting entities to employ at least 250 persons and
deletes waiver provision.

(b)  Applies provisions of volunteer work experience program to
recipients on or after Sept. 1, 1995.

SECTION 4.03.  EMPLOYMENT PROGRAMS.  Amends Chapter 31, H.R. Code,
by adding new Sec. 31.0126 as follows:

Sec. 31.0126.  EMPLOYMENT PROGRAMS.  (a)  Requires DHS, in
cooperation with the state agency for workforce development, to
develop by rule job programs for AFDC recipients, including work
first, business internships, Texas works, community work
experience, subsidized employment, and self-employment.  
     (b)  Requires DHS to develop work programs in accordance with
the federal JOBS program.
     (c)  Requires DHS to adopt rules to establish eligibility
criteria for the JOBS program, allowing for certain recipients who
may be unable to participate, and provide technical assistance to
local workforce development boards.  
     (d)  Local workforce development boards would be permitted to
implement any of the listed work programs.
     (e)  DHS must submit a waiver application to the federal
government to implement local work programs, if required.
     (f)  Defines "local workforce development board."

SECTION 4.04.  DEMONSTRATION PROJECTS; FUND.  Amends Article
5190.7a, V.T.C.S., by adding Sections 4.055-4.057 as follows:

Sec. 4.055.  DEMONSTRATION PROJECTS.  (a)  Defines "board" and
"workforce development agency."  
     (b)  Permits local workforce development boards to establish
and operate education and  training programs; 
     (c)  Requires local boards to submit written program proposals
to the state workforce agency; requires workforce agency to approve
certain programs.
     (d)  Work programs administered by local boards would be local
demonstration projects; local boards must report quarterly on the
effectiveness of the projects.
     (e)  Changes would have to be approved by the state workforce
agency.

Sec. 4.056.  CERTAIN PROGRAMS FOR AFDC RECIPIENTS.  (a)  Directs
local workforce boards to adopt programs to enhance AFDC
recipients' participation in the JOBS program; the state workforce
agency would provide technical assistance as needed.
     (b)  Programs could be adapted by local boards to fit the
needs of the recipients residing in the area.
     (c)  Programs would have to be approved by the state workforce
agency before implemented.
     (d)  Defines "JOBS training program."

Sec. 4.057.  REVOLVING FUND ACCOUNT.  (a)  Creates a special
revolving fund account in the state treasury to provide loans to
local boards for demonstration projects.
     (b)  Funds in the account would derive from money appropriated
by the Legislature, donations, repayment of loans, revenue from
state and federal education, training, and job programs, and
interest earned.  
     (c)  Local boards must repay money borrowed when permanent
revenue is available from state and federal education, training and
job programs.
     (d)  Govt. Code Secs. 403.094 and 403.095 relating to funds
consolidation do not apply.

SECTION 4.05.  TEEN JOBS PILOT PROGRAM.  (a)  Instructs TEA, in
conjunction with DHS and the Comptroller, to establish pilot
projects in at least four school districts to help teenage parents
stay in school.  
     (b)  Services may include parenting services, child care,
transportation, tutorial services, guidance and career counseling,
mentor programs, on-the-job training and other allowable relevant
services.
     (c)  Requires TEA to report on the project to the Governor and
Legislature.
     (d)  This section expires January 1, 1999.

SECTION 4.06.  FEDERAL WORK HISTORY AND 100-HOUR RULE WAIVER. 
Directs DHS to reapply for a waiver of federal rules in order to
implement Sec. 31.014, H.R. Code, to assist AFDC two-parent
families in staying together.

ARTICLE 5.  CHILD SUPPORT ENFORCEMENT.

SECTION 5.01.  PRIORITY GIVEN TO AFDC CHILD SUPPORT CASES; SUPPORT
FOR CHILDREN IN SUBSTITUTE CARE.  Amends Sec. 76.003, H.R. Code, by
adding new subsections (g) and (h) as follows:

     (g)   Directs the AG to prioritize AFDC cases when handling
child support cases.
     (h)  Instructs the AG to adopt procedures to transfer to the
Dept. of Protective & Regulatory Services (DPRS) any child support
payments collected for children in the custody of DPRS who would
otherwise be eligible for AFDC, in order to help defray the cost of
foster care.

SECTION 5.02.  CONFORMING AMENDMENT:  SUBSTITUTE CARE.  Amends Sec.
14.05, Family Code, by adding Subsections (k) and (l) as follows:

     (k)  Permits the court to order parents to make child support
payments for children in the temporary custody of DPRS.
     (l)  Such payments must be paid to DPRS through the state
registry.

SECTION 5.03.  CONFORMING AMENDMENT:  CHILD SUPPORT SERVICES. 
Amends Chapter 76, H.R. Code, by designating Sections 76.001-76.011
as Subchapter A and adding a new heading, Title IV-D Child Support
Services.

SECTION 5.04.  INTERVENTION ASSISTANCE FOR UNEMPLOYED NONCUSTODIAL
PARENTS.  Amends Chapter 76, H.R. Code, by adding Sec. 76.012 as
follows:

Sec. 76.012.  UNEMPLOYED NONCUSTODIAL PARENTS.  (a)  Instructs the
AG to refer unemployed noncustodial parents who owe child support
for AFDC eligible children to the appropriate state or local
intervention assistance programs.
     (b)  Programs may include skills training and job placement,
education and literacy, and counseling on substance abuse,
parenting skills, life skills and mediation techniques.

SECTION 5.05.  SUSPENSION OF STATE-ISSUED LICENSES.  (a)  Amends
Chapter 76, H.R. Code, by adding a new Subchapter B as follows:

        Subchapter B:  Suspension of License for Failure 
             To Pay Child Support in Title IV-D Cases

Sec. 76.101.  DEFINITIONS.  Provides definitions of terms used in
the subchapter, including "child support agency," "license," (which
includes occupational, professional, business, motor vehicle or
other regulated or recreational activity), "licensing authority,"
"order suspending license," "Title IV-D agency" (the Texas Attorney
General)(AG) and "Title IV-D case."

Sec. 76.102.  LICENSING AUTHORITIES SUBJECT TO SUBCHAPTER.  Sets
out list of 52 state agencies that issue licenses or permits.
Sec. 76.103.  SUSPENSION OF LICENSE.  Directs the Title IV-D agency
(AG) to suspend licenses if an obligor (noncustodial parent) owes
support for 90 days or more, has agreed to repay the debt, but
failed to make payments.
Sec. 76.104.  PETITION FOR SUSPENSION OF LICENSE.  A county or
district attorney or other county officer with a cooperative
agreement with the AG or the obligee may file a petition to suspend
a license with the AG's office of child support enforcement. 
Contested case proceedings in the Texas Administrative Procedures
Act (APA) apply.
Sec. 76.105.  CONTENTS OF PETITION.  Lists details that must be
included in a petition.
Sec. 76.106.  NOTICE.  Requires the AG to notify the obligor that
his license may be suspended after 60 days, and explain the
procedures to be followed by the state and the obligor.
Sec. 76.107.  HEARING ON PETITION TO SUSPEND LICENSE.  Permits
obligor to ask for a hearing within 20 days of receiving notice;
requires the AG to schedule the hearing promptly; provides that a
record of child support payments made constitutes evidence.
Sec. 76.108.  ORDER SUSPENDING LICENSE.  Requires the AG to suspend
a license, unless the obligor proves that all arrearages and the
current month's child support payments have been made; permits a
stay of the suspension if the obligor complies with repayment
schedule; requires the AG to forward its order of suspension to the
appropriate licensing agency; prohibits obligor from engaging in
licensed activity; also suspension or order.
Sec. 76.109.  DEFAULT ORDER.  Requires the AG to consider
allegations contained in the petition if the obligor fails to
respond to notice, request a hearing or appear.
Sec. 76.110.  REVIEW OF FINAL ADMINISTRATIVE ORDER.  Provides that
AG's order to suspend is final, but subject to review under
substantial evidence rule in the APA.
Sec. 76.111.  ACTION BY LICENSING AUTHORITY.  Requires the
appropriate licensing authority to verify the license, record and
report the suspension, and demand surrender of the license, as
needed, but permits no additional hearing or modification of the
order; disallows refund of licensing funds paid; deems an obligor
liable for civil and criminal penalties for engaging in the
activity for which the license was suspended; exempts licensing
agency from liability; has no affect on other agency licensing
authority; supercedes driving license suspensions in other law.
Sec. 76.112.  MOTION TO REVOKE STAY.  The custodial parent, AG or
child support agency may revoke the stay or an order suspending a
license if the obligor does not comply with the repayment schedule;
provides for notice, motions to revoke the stay.
Sec. 76.113.  VACATING OR STAYING ORDER SUSPENDING LICENSE.  The AG
may vacate or stay an order to suspend a license if the obligor has
paid all delinquent child support or establish satisfactory record;
also contains provisions for notice, license reissuance, allows
other remedies.
Sec. 76.114.  FEE BY LICENSING AUTHORITY.  Permits a licensing
agency to charge a fee to recover the costs of suspending the
license.
Sec. 76.115.  COOPERATION BETWEEN LICENSING AUTHORITIES AND AG. 
Requires licensing agencies to provide identifying information to
the AG about persons holding licenses, and allows cooperative
agreements between licensing agencies and the AG; allows AG to
adopt implementation schedule.
Sec. 76.116.  RULES, FORMS, AND PROCEDURES.  Requires the AG, as
the Title IV-D agency, to make rules implementing this subchapter.

(b)  Applies the new license suspension subchapter to all child
support owed and unpaid on or after Sept. 1, 1995, for AFDC child
recipients, and valid licenses on or after that date.

ARTICLE 6.  FINANCIAL ASSISTANCE THROUGH FEDERAL PROGRAMS.

SECTION 6.01.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.  (a) 
Amends Art. 4413(502), Revised Statutes, by adding new Sec. 22 as
follows:

Sec. 22(a).  Requires the Health & Human Services Commission to
assist AFDC recipients to obtain Supplemental Security Income (SSI)
or Social Security Disability Income (SSDI) benefits, if qualified;
permits HHSC to delegate this responsibility, contract out or use
other cost-effective methods to assist recipients.  
     (b)  Requires the state to deduct from a recipient's initial
SSI or SSDI lump-sum payment a consultant's fee, plus AFDC payments
made by the state to the recipient during the pendency of the
SSI/SSDI application.
     (c)  Requires HHSC to set up a planning group composed of DHS,
TEA, and the Texas Rehabilitation Commission (TRC) to improve
workload coordination between those agencies and assist any
consultant.

(b)  Reporting requirement of the planning group to the Governor
and Legislature, by January 15, 1997.

SECTION 6.02.  EMPLOYMENT OPPORTUNITIES FOR PERSONS WITH
DISABILITIES.  Amends Chapter 121, H.R. Code, by adding new Secs.
121.0014 and 121.0015 as follows:

Sec. 121.0014.  VISION STATEMENT.  Requires HHSC and all agencies
under its umbrella, and state agencies administering workforce
development programs to adopt a vision statement, set out in the
bill; defines "health & human services agency."

Sec. 121.0015.  INTERAGENCY WORK GROUP.  Creates an interagency
work group to implement the action plan from the 1994 Supported
Employment Summit, consisting of TEA, Texas Commission for the
Blind, Texas Dept. of Mental Health & Mental Retardation (MHMR),
and TRC;  requires the State Comptroller to monitor the group and
report to the Governor and Legislature by Nov. 15, 1996, on its
progress.

SECTION 6.03.  WORK INCENTIVES & SUPPLEMENTAL SECURITY INCOME
(SSI).  Amends Chapter 111, H.R. Code, by adding new Sec. 111.0205
as follows.

Sec. 111.0205.  Requires TRC to employ a person to train counselors
about using work incentives, and ensure that TRC contractors follow
incentives toward supported employment.

SECTION 6.04.  CONTRACTING FOR SUPPLEMENTAL SECURITY INCOME (SSI). 
Amends Sec. 533.034 Health & Safety Code by labeling existing
provision (a) and adding new subsection (b) as follows:

     (b)  Requires MHMR to ensure that services to clients at local
MHMR authorities include information about the work incentive
program and supported employment.

SECTION 6.05.  COMPETITIVE EMPLOYMENT.  Amends Sec. 21.510(e),
Education Code, by requiring individual transition plans (ITP) for
children with disabilities to include a goal of competitive
employment as part of their school program, beginning with the
1995-96 school year; requires TEA to study effects of changing ITP
for children aged 14 and up and report to the Governor and
Legislature.

SECTION 6.06.  FEDERAL FUNDING:  MENTAL HEALTH SERVICES.  Amends
Chapter 533 of the Health & Safety Code by adding new Sec. 533.046
as follows:

Sec. 533.046.  FEDERAL FUNDING FOR MENTAL HEALTH SERVICES FOR
CHILDREN AND FAMILIES.  Requires MHMR to establish an interagency
agreement with DHS to amend the state's Emergency Assistance Plan
to include mental health emergencies, using local MHMR dollars to
draw down the federal match; requires MHMR to allocate 66% of the
additional funds to local MHMR authorities.

SECTION 6.07.  FEDERAL FUNDING:  CHEMICAL DEPENDENCY SERVICES.  (a) 
Amends Art. 4413(502), Revised Statutes, by adding new Sec. 10A as
follows:

Sec. 10A.  FEDERAL FUNDING:  CHEMICAL DEPENDENCY SERVICES. 
Requires the Health & Human Services Commission (HHSC) to
coordinate with TCADA to include children or caretakers who need
chemical dependency treatment in the state's Emergency Assistance
Plan.

(b)  Requires TCADA to study adding chemical dependency treatment
as an allowable service in the state's Medicaid plan.

SECTION 6.08.  FEDERAL FUNDS:  FOSTER CARE.  (a)  Amends Art.
4413(503), Revised Statutes, by adding new Sec. 12A as follows:

Sec. 12A.  FEDERAL FUNDS FOR CERTAIN CHILDREN.  Requires DPRS to
classify as a "child in foster care" every child in the state's
custody who is placed in a relative's home, for purposes of
Medicaid eligibility only; requires DPRS to ensure time studies
identify all costs incurred; allows DPRS to use attorney's fees and
court charges as expenses in adoption cases in order to draw down
a federal match.

(b)  Instructs DPRS to claim retroactive federal financial
participation for legitimate nonrecurring adoption expenses.
(c)  Permits DPRS to seek a federal waiver if needed, and if
denied, requires DPRS to exhaust administrative remedies and
judicial review as necessary.

SECTION 6.09.  FEDERAL TAX CREDIT.  Amends Chapter 403, Govt. Code,
by adding new Sec. 403.024 as follows:

Sec. 403.024.  FEDERAL EARNED INCOME TAX CREDIT.  Designates the
State Comptroller as the lead state agency to promote awareness of
the federal earned income tax credit (EITC); directs the
Comptroller to recruit other agencies and the Governor's office to
coordinate a campaign thereto.

ARTICLE 7.  ADULT EDUCATION; PILOT PROGRAMS FOR ASSISTANCE.

SECTION 7.01.  ADULT LEARNING LABS FOR AFDC CLIENTS.  Amends
Chapter 11, Education Code, by adding new Sec. 11.2093 as follows:

Sec. 11.2093.  EDUCATE TEXAS PROGRAM.  Creates an adult education
program for AFDC recipients.  Requires TEA, the Texas Higher
Education Coordinating Board and state workforce agency to develop
a system of adult learning labs in public schools, community
colleges, and other sites to provide emergency education and
literacy services listed.

SECTION 7.02.  ELIGIBILITY FOR ADULT LEARNING LABS.  Amends Chapter
31, H.R. Code by adding new Sec. 31.0124 as follows:

Sec. 31.0124.  REFERRAL TO EDUCATIONAL PROGRAMS.  Requires DHS to
determine recipient's need and eligibility for adult education
services, and refer recipients to the Educate Texas program, as
appropriate.

SECTION 7.03.  ADULT LITERACY AND LEARNING PROGRAMS.  Amends
Chapter 88, Education Code, by adding new Subchapter G as follows:

    Subchapter G:  Texas Center for Adult Literacy & Learning

Sec. 88.541.  DUTIES OF TEXAS CENTER FOR ADULT LITERACY AND
LEARNING.  

     (a)  Requires the Center (located at Texas A&M) to evaluate
materials for adult literacy instruction, publish a guide and
encourage cable companies and other entities to use the materials. 

     (b)  Requires the Center to develop voluntary standards for
curriculum and workbooks for adult literacy programs, organizing an
advisory group as needed, including among others the Dept. of
Criminal Justice.
     (c)  Requires the Center to develop workbooks or other
materials.
     (d)  Requires the Center to develop promotional materials
about adult literacy and distribute samples.

SECTION 7.04.  LITERACY:  ENGLISH AS A SECOND LANGUAGE.  Amends
Chapter 13, Education Code, by adding Sec. 13.044 as follows:

Sec. 13.044.  ADULT LITERACY & ENGLISH AS SECOND LANGUAGE
CURRICULUM.    (a)  Requires institutions of higher education with
teacher training programs to include a course in teaching adult
literacy and English as a second language. 
     (b)  Permits institutions to establish internships teaching
literacy and English as a second language.

SECTION 7.05.  PILOT PROGRAM TO ASSIST AFDC CLIENTS IN ACHIEVING
SELF- SUFFICIENCY.  Instructs DHS to establish a pilot program to
provide supported employment to help families become self-sufficient; permits DHS to use fill-the-gap budgeting or 24-month
transitional benefits in the pilot; requires DHS to consider using
the state's Uniform Group Insurance Program; requires DHS to report
to the Governor & 75th and 76th Legislatures about the program's
success; defines "fill-the-gap"; expiration date of Sept. 1, 1999.

SECTION 7.06.  PILOT PROGRAM: EMERGENCY ASSISTANCE FOR NON-AFDC
FAMILIES IN CRISIS.  Instructs DHS to seek federal funds to
establish a pilot of emergency assistance in an area of high
unemployment or using electronic benefits transfer (EBT); directs
DHS by rule to develop guidelines for cash assistance for families
who do not qualify for AFDC but need assistance to divert them from
the AFDC rolls; reporting requirement by DHS to the Governor and
75th and 76th Legislatures.

SECTION 7.07.  PILOT PROGRAM: SAVINGS ACCOUNT FOR AFDC RECIPIENTS. 
Requires DHS, in conjunction with the state treasurer, to create a
pilot project consisting of individual development accounts for
AFDC recipients to allow them to accumulate savings in order to
sustain self-sufficiency; permits DHS to adopt rules regarding the
size of the pilot and  amount that may be saved; requires DHS to
encourage private sector employers to match funds for employed
recipients; reporting requirement by DHS to the Governor and 75th
& 76th Legislatures on the program's success; expires Sept. 1,
1999.

ARTICLE 8.   PRIVATIZATION; INTEGRATED ELIGIBILITY; FRAUD & ERROR
PREVENTION; TASK FORCE

SECTION 8.01.  PRIVATIZATION STUDY.  Instructs the Council on
Competitive Government to study the costs and benefits of
contracting with private entities to determine eligibility for
AFDC, assist recipients in finding jobs, and detect fraud in the
welfare system; directs other state agencies to cooperate as
needed; requires Council to report by January 15, 1997, to the
Governor and Legislature.

SECTION 8.02.  INTEGRATED ELIGIBILITY DETERMINATION.  (a)  Requires
the Health & Human Services Commission (HHSC) to develop and
implement a plan for integrated eligibility determination and
service delivery by September 1, 1996.  

(b)  Requires the design of the integrated eligibility system to
achieve at least a one percent (1%) savings, to be used for further
development of the system.
(c)  Requires HHSC to report savings to local, state and federal
agencies. 
(d)  Requires HHSC, in consultation with the State Council on
Competitive Government, to consider providing services through a
competitive bid process or contracting with local government or
others. 
(e)  Requires HHSC to develop by October 1, 1996, a plan to
consolidate administrative and service delivery functions to
eliminate duplication, with a report due by January 15, 1997, to
the Governor and 75th Legislature.

SECTION 8.03.  STREAMLINING ELIGIBILITY DETERMINATION.  Requires
HHSC to expand integrated eligibility pilots to include Harris
County Hospital District and U.T.M.B.-Galveston, contracting with
the two entities and setting performance measures to reduce error
rates and to simplify processes and use their software; also
requires HHSC to establish standards to automated systems and study
privatization of DHS' eligibility services.

SECTION 8.04.  INTEGRATED SERVICE DELIVERY.  Requires HHSC to
develop by September 1, 1997, integrated approaches to health and
human services delivery, including one-stop service centers, in
existing community locations; requires HHSC umbrella agencies to
cooperate; expires Sept. 1, 1997.

SECTION 8.05.  OVERSIGHT GROUP.  Creates an oversight group
consisting of representatives of the Governor, Lt. Governor,
Speaker, State Comptroller, and LBB to oversee HHSC's development
and implementation of integrated eligibility and service delivery
plans.

SECTION 8.06.  PUBLIC ASSISTANCE FRAUD OVERSIGHT TASK FORCE. 
Amends Chapter 21, H.R. Code, by adding Sec. 21.0145 as follows:

Sec. 21.0145.  PUBLIC ASSISTANCE FRAUD OVERSIGHT TASK FORCE. 
Creates a task force, consisting of representatives of the AG,
Comptroller, Dept. of Public Safety, State Auditor, and DHS, to
advise and assist DHS in fraud investigations and collections;
provides for chair, meetings, expenses and monthly informational
reports. 

SECTION 8.07.  FRAUD PREVENTION.  (a)  Amends Chapter 22, H.R.
Code, to adding Sec. 22.027 as follows:

Sec. 22.027.  FRAUD PREVENTION.  Requires the DHS Inspector General
to compile data on fraud prevention and referrals; requires DHS to
publicize successful fraud prosecutions, establish a toll-free
fraud hotline, and develop a method to identify applicants
receiving public assistance in neighboring states; also requires
DHS to develop a system to verify auto information through TXDOT
and establish a computerized system with the corrections division
of the TX Dept. of Criminal Justice preventing inmates from
receiving benefits.  

(b)  Requires DHS to evaluate the five-day time limit on
investigating fraud cases and consider increasing post-fraud
referrals for investigation.

SECTION 8.08.  PREVENTING FRAUD THROUGH VEHICLE REGISTRATION. 
Amends Sec. 24, Art. 6687-1, V.T.C.S. by adding new subsection (b)
as follows:

(b)  Adds to the information on the certificate of title to a motor
vehicle a person's social security number.

SECTION 8.09.  VEHICLE REGISTRATION DATABASE.  Amends Art. 6675a-17A, V.T.C.S., by amending (b) permitting the release of personal
information only for the purpose of determining eligibility for
public assistance; and adding new subsection (c), instructing TXDOT
to provide a dedicated line to the vehicle registration record
database for eligibility determinations.

SECTION 8.10.  ELECTRONIC IMAGING PROGRAM.  (a) Amends Chapter 31,
H.R. Code by adding new Section 31.0325 as follows:

Sec. 31.0325.  ELECTRONIC IMAGING PROGRAM.

     (a)  Requires DHS, in conjunction with other agencies, by rule
to develop a welfare fraud prevention program using finger- or
photo-imaging techniques.
     (b)  Requires DHS, by rule, to ensure confidentiality of
information.
     (c)  Sets up standards DHS must follow in the development and
gradual implementation of the program.
     (d)  Requires status reports by DHS to Governor & Legislature.

(b)  Requires DHS to establish the initial electronic imaging
program by January 1, 1996.

SECTION 8.11.  ERROR-RATE REDUCTION.  (a)  Amends Chapter 22, H.R.
Code, by adding new Sections 22.025 and 22.026 as follows:
 
Sec. 22.025.  ERROR-RATE REDUCTION.  Requires DHS to set
progressive goals for improving its error rates in the AFDC and
food stamp programs, developing a schedule to meet the goals;
requires quarterly progress reports to the Governor, LBB and task
forces; directs DHS to include in its employee evaluations a rating
system that emphasizes error-rate reduction, and take disciplinary
action, as needed.

Sec. 22.026.  REDUCTION OF CLIENT FRAUD.  Requires DHS to verify
errors attributed to client fraud and limit such fraud.  

(b) and (c) Requires DHS to develop by November 1, 1995, a plan to
reduce error rates in the Houston region, with a report due by
April 1, 1996.

SECTION 8.12.  MODIFICATION OF SCREENING & SERVICE DELIVERY. 
Amends Sec. 33.002, H.R. Code by adding new subsection (g)
permitting DHS to modify if necessary the one-day screening process
and service delivery for emergency food stamps in order to reduce
the state's error rate.

SECTION 8.13.  TASK FORCE:  ELECTRONIC BENEFITS TRANSFERS.  Amends
Art. 4413(502), Revised Statutes, by adding Sec. 10B as follows:

Sec. 10B.  INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS TRANSFERS. 
Creates a task force composed of representatives of the AG,
Comptroller, HHSC, Texas Dept. of Health, DHS, TEC, TRC, two
retailers, two banks or ATM owners, and two consumers or advocates,
to assist HHSC in adding new benefit programs to the EBT system;
provides for chair, meetings, expenses; lists duties of the task
force and considerations for program benefits to add.

ARTICLE 9.  GENERAL PROVISIONS:  HEALTH & HUMAN SERVICES AGENCIES.

SECTION 9.01.  WORKLOAD STANDARDS AND EDUCATION.  Instructs HHSC,
by Feb. 1, 1996, to develop workload standards and educational
requirements to manage client eligibility determinations, phasing
out over-qualified staff except for those reviewing fraud and error
cases.

SECTION 9.02.  APPROPRIATIONS, TRANSFERS & REPORTING.  Amends Art.
4413(502), Revised Statutes, by adding Sec. 13A and Sec. 13B as
follows:

Sec. 13A.  FEDERAL FUNDS.  Subjects any changes to state plans
involving the expenditures of federal funds (such as Medicaid,
Emergency Assistance, food stamp, etc.) to the approval of HHSC;
directs HHSC to evaluate the feasibility of designating itself as
the only state agency to receive federal funds; and would permit
HHSC to consolidate federal funds to send to local communities to
streamline service delivery.

Sec. 13B.  APPROPRIATIONS AND REPORTING.  Requires agencies under
the HHSC umbrella to obtain HHSC's approval for annual operating
budgets and for transfers between strategies of funds in excess of
$1 million; sets up quarterly reporting requirements relating to
agency expenditures, beginning Sept. 1, 1995.

SECTION 9.03.  STRATEGIC PLANS AND UPDATES.  Amends Sec. 10(d) of
Art. 4413(502), Revised Statutes, continuing HHSC's authority to
make rules relating to the submission of strategic plans and
updates, but subjects any such plans or updates by the agencies
under the HHSC umbrella to HHSC modification or approval.

SECTION 9.04.  CO-LOCATION OF OFFICES.  Amends Sec. 3.08(a) of Art.
4413(505), V.T.C.S. permitting HHSC to co-locate agency offices as
leases expire to achieve one-stop service centers, and striking
provisions allowing individual agencies to make such
determinations; strikes provisions allowing agencies more
discretion.

SECTION 9.05.  LEASING OFFICE SPACE.  Amends Sec. 6.031(a) of Art.
601b, V.T.C.S. prohibiting General Services Comm'n to lease space
for an HHSC umbrella agency without HHSC approval.

SECTION 9.06.  AGENCY STAFF.  Amends Art. 4413(502), Revised
Statutes, by adding new Sec. 23, allowing HHSC to request the
assistance of staff from agencies under its umbrella to carry out
its functions.

ARTICLE 10.  REPEALER; WAIVERS; EFFECTIVE DATE; EMERGENCY.

SECTION 10.01.  Repeals outdated provisions relating to ended pilot
programs or interim studies.
SECTION 10.02.  Permits DHS, the Title IV-D agency (AG) or another
agency to seek any federal waiver necessary to implement the
provisions of the bill.
SECTION 10.03.  Effective date September 1, 1995, unless otherwise
provided.
SECTION 10.04.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

     H.B. 1863 was reorganized and rearranged, and sections
renumbered, after incorporation of several new provisions in the
committee substitute that were not part of the original bill,
including the following:  the family cap and family grant, support
services, parenting skills training and resource limits; the
Responsibility Agreement and related provisions; an approach to
time-limited benefits based upon recipients' educational background
and previous work experience, implemented gradually statewide,
rather than the pilot project; mandatory work provision for certain
recipients; Child Support Enforcement sections including license
suspension.  The provisions requiring the Legislature to
appropriate all funds to the Health & Human Services Commission
were removed by the committee.


SUMMARY OF COMMITTEE ACTION

     In a public hearing of the Human Services Committee on March
8, 1995, the Chairman laid out H.B. 1863 by Reps. Hilderbran and
Stiles, and offered a committee substitute.  The following
witnesses provided testimony on H.B. 1863:  Hon. John Sharp, State
Comptroller, DeAnn Friedholm, Texas Health & Human Services Comm'n,
Robin Herskowitz, Office of the State Comptroller, Patrick
Bresette, Center of Public Policy Priorities, Gordon Enos, North
American Morpho Systems, Inc., Austin office, Phyllis Coombs, State
Comptroller, Judy Denton, Texas Dept. of Human Services.  The
following witnesses provided testimony for H.B. 1863:  Oliver B.
McMahan, Jr., Waco, Susan Garnett, ARC of Texas, Austin, Judith
Sokolow, Advocacy, Inc., James A. Cooley, Austin.  The following
witnesses provided testimony against H.B. 1863:  Gilbert Gonzales,
Jr., Austin, Bob Green, Texas Fathers Alliance, Primary Nurturing
Fathers of Texas.  The committee substitute was withdrawn and H.B.
1863 was left pending.

     On March 9, 1995, the Human Services Committee, convened in a
formal meeting, took up H.B. 1863 which had been pending.  The
Chairman laid out a committee substitute.  Committee Amendment No.
1 by Krusee was adopted without objection.  Committee Amendments
No. 2 and No. 3 by Reps. Maxey and Naishtat were adopted without
objection.  Com.  Amendment No. 4 by Reps. Naishtat and Jones
failed by a record vote of 4 Ayes and 5 Nays.  Com. Amendments No.
5 was adopted on a non-record vote by a vote of 6 Ayes and 3 Nays. 
Com. Amendment No. 6 was adopted on a non-record vote of 5 Ayes and
4 Nays.  Committee Amendment No. 7 by Wohlgemuth was adopted
without objection.  The committee substitute for H.B. 1863, as
amended, was adopted without objection.  H.B. 1863 was reported
favorably as substituted by a record vote of 9 Ayes, 0 Noes, 0 PNV,
and 0 absent.  The clerk was instructed to fold the amendments into
the bill.

     In a formal meeting on March 14, 1995, the House Human
Services Committee convened and the Chairman announced that the
action of the Committee in reporting H.B. 1863 on March 9 was not
valid due to the fact that the certified copy was not available. 
The Chairman laid out H.B. 1863 by Reps. Hilderbran and Stiles and
offered a committee substitute.  The committee substitute for H.B.
1863 was adopted without objection.  H.B. 1863 was reported
favorably as substituted by a record vote of 9 Ayes, 0 Nays, 0 PNV,
and 0 Absent.

     On March 28, H.B. 1863 was returned to the Human Services
Committee on a point of order.  While the committee was convened in
a public hearing on March 29, 1995, the Chairman laid out H.B.
1863.  No testimony was taken on the bill.  Rep. Maxey offered a
committee substitute for the bill which was adopted without
objection.  H.B. 1863 was reported favorably as substituted on a
record vote of 6 Ayes, 0 Nays, 0 PNV, and 3 absent.