BILL ANALYSIS

                                                    C.S.H.B. 1863
                                       By: Hilderbran (Zaffirini)
                                        Health and Human Services
                                                         04-19-95
                            Senate Committee Report (Substituted)
                                                                 
BACKGROUND

Almost every state in the nation is pursuing some type of welfare
reform.  Most strive to encourage work by reducing penalties on
earnings, to enforce parental responsibilities, to alter rules that
penalize two-parent families, to simplify the delivery of benefits,
to create jobs for welfare recipients, and to improve access to
child and health care.

C.S.H.B. 1863 is based on Partnership for Independence, a report on
welfare reform completed by the comptroller.  The comptroller
conducted extensive research with national experts and consultants
in order to reflect the direction of welfare reform both in
Washington, D.C., and in state capitals across the country.

PURPOSE

As proposed, C.S.H.B. 1863 makes provisions for increasing
employment services and assistance, the reduction of dependence on
state assistance, the reduction of public assistance fraud and
error, increasing federal funding for specific assistance programs,
and requiring proof of immunization for children applicants for
state assistance, all in order to assist welfare recipients in
achieving independence.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas Department of Human Services under SECTIONS 1.03 and
5.01 (Sections 31.0126(a) and 31.031(e), Human Resources Code) of
this bill.

SECTION BY SECTION ANALYSIS

                  ARTICLE 1.  WORK REQUIREMENTS

SECTION 1.01.  ASSISTANCE PRIORITY IS WORK.  Amends Section 31.001,
Human Resources Code, as follows:

     Sec. 31.001.  AID TO FAMILIES WITH DEPENDENT CHILDREN.  (a)
     Requires the Texas Department of Human Services (DHS) to give
     first priority to assisting an adult recipient, or unemployed
     applicant for financial assistance and services, in finding
     and retaining a job.
     
     (b) Requires DHS to give each adult recipient a copy of a
       bill of responsibilities that defines the responsibilities
       of the state and the recipient and that encourages personal
       responsibility.
       
       (c) Prohibits DHS from withholding benefits or otherwise
       penalizing a recipient who fails to meet the
       responsibilities under Subsection (b) or who fails to
       participate in training, education, or other programs, if
       the support services necessary to meet those
       responsibilities or to participate in training, education,
       or other programs are not provided to that recipient.
       
       SECTION 1.02.  CHILD CARE WORK EXEMPTION.  Amends Chapter 31A,
Human Resources Code, by adding Section 31.0123, as follows:

     Sec. 31.0123.  EXEMPTION FROM JOBS TRAINING PROGRAM.  Requires
     DHS to exempt a caretaker of a dependent child younger than
     one year of age from participation in a JOBS component.
SECTION 1.03.  EMPLOYMENT PROGRAMS.  (a) Amends Chapter 31A, Human
Resources Code, by adding Section 31.0126, as follows:

            Sec. 31.0126.  EMPLOYMENT PROGRAMS.  (a) Requires DHS to
       develop, by rule, certain programs to assist recipients in
       finding and retaining employment.
       
       (b) Requires DHS to develop these programs in accordance
         with federal law as part of the job opportunities and
         basic skills (JOBS) training program under the federal
         Social Security Act.
         
         (c) Sets forth guidelines for DHS in adopting rules.
         
         (d) Authorizes a local workforce development board to
         implement one or more programs prescribed by this section
         in a workforce development area.
         
         (e) Requires DHS to submit a waiver application or renewal
         waiver application that a federal agency may require
         before implementation of a program.
         
         (f) Defines "local workforce development board."
     (b) Repealer: Section 31.0125, Human Resources Code (Community
     Work Experience Program).
     
     SECTION 1.04.  DETERMINATION OF MAXIMUM ALLOWABLE RESOURCES. 
Amends Sections 31.032(b) and (c), Human Resources Code, as
follows:

     (b) Requires DHS, in determining maximum allowable resources
     for the purposes of assistance eligibility, to follow federal
     regulations governing such resources under the food stamp
     program, 7 CFR Part 273.
     
     (c) Makes nonsubstantive changes.
SECTION 1.05.  DEMONSTRATION PROJECTS; FUND.  Amends Article
5190.7a, V.T.C.S. (Workforce and Economic Competitiveness Act), by
adding Sections 4.055-4.057, as follows:

     Sec. 4.055.  DEMONSTRATION PROJECTS.  (a) Defines "board" and
     "workforce development agency."
     
     (b) Authorizes each local workforce development board
       (board) to establish and operate localized programs to
       expand education, training, and employment in the workforce
       development area, and to design creative programs that fit
       the area's unique characteristics and needs.
       
       (c) Requires a board that designs a program to submit a
       written proposal for approval to the workforce development
       agency (agency).  Requires the agency to approve any program
       that meets specific requirements.
       
       (d) Requires a board to implement and administer a program
       approved by the agency as a local demonstration project, and
       to report to the agency quarterly regarding the
       administration and effectiveness of the project in serving
       the needs of the community.
       
       (e) Requires a board to submit proposed program changes to
       the agency in writing.  Requires the agency to approve the
       changes before their adoption and implementation.
       
       Sec. 4.056.  CERTAIN PROGRAMS FOR AFDC RECIPIENTS.  (a)
     Requires each board to adopt programs to enhance the ability
     of recipients, who are eligible to participate in the JOBS
     training program, to obtain and retain gainful employment. 
     Requires the agency to provide technical assistance to the
     board in adopting programs.
     
     (b) Requires the board to consider the programs established
       under Section 31.0126, Human Resources Code, in adopting
       programs under this section, and authorizes the board to
       adapt a program to more effectively serve recipient needs.
       
       (c) Requires the agency to approve a board adopted program
       before the board can implement the program.
       
       (d) Defines "JOBS training program."
       
       Sec. 4.057.  REVOLVING FUND ACCOUNT.  (a) Establishes a
     special revolving fund account, the local workforce
     development board demonstration project account, in the state
     treasury to be used only for specific purposes.
     
     (b) Sets forth the contents of the account.
       
       (c) Requires money drawn from the account to be paid back to
       the account as certain funds become available.
       
       (d) Provides that Sections 403.094 and 403.095, Government
       Code, do not apply to the account.
       
       SECTION 1.06.  EMPLOYMENT OPPORTUNITIES FOR PERSONS WITH
DISABILITIES.  (a) Amends Chapter 121, Human Resources Code, by
adding Sections 121.0014 and 121.0015, as follows:

            Sec. 121.0014.  VISION STATEMENT.  (a) Provides the text of
       a statement of vision to be adopted by the Health and Human
       Services Commission (commission), each health and human
       services agency, and each state agency administering a
       workforce development program.
       
       (b) Defines "health and human services agency."
         
       Sec. 121.0015.  INTERAGENCY WORK GROUP.  Creates an
       interagency work group to implement the action plan adopted
       at the 1994 Supported Employment Summit, and sets forth
       guidelines for its composition and function.
       
     (b) Requires the comptroller, not later than November 15,
     1996, to submit a report to the governor and legislature
     describing the progress toward implementing the action plan,
     and to notify the legislature and certain standing committees
     of the filing report.
SECTION 1.07.  WORK INCENTIVES.  Amends Chapter 533.008, Health and
Safety Code, by amending the section heading and Subsection (a),
and by adding Subsection (e), as follows:

     Sec. 533.008.  New heading: EMPLOYMENT OPPORTUNITIES FOR
     INDIVIDUALS WITH MENTAL ILLNESS AND MENTAL RETARDATION.  (a)
     Requires each Texas Department of Mental Health and Mental
     Retardation (MHMR) facility and community center to assess the
     feasibility of converting certain positions into employment
     opportunities for certain individuals, rather than patients
     and clients, with mental illness and mental retardation.
     
     (e) Requires each MHMR facility and community center to
       ensure that designated staff have certain training related
       to the Social Security Administration.
SECTION 1.08.  WORK INCENTIVES AND SUPPLEMENTAL SECURITY INCOME
(SSI).  Amends Chapter 111B, Human Resources Code, by adding
Section 111.0205, as follows:

     Sec. 111.0205.  WORK INCENTIVES AND SUPPLEMENTAL SECURITY
     INCOME (SSI).  Requires the commission to employ a person at
     the commission's central office to train counselors to
     understand and use work incentives, and to review cases to
     ensure that commission clients are informed of the
     availability of and assisted in obtaining work incentives and
     Supplemental Security Income (42 U.S.C. Section 1381 et seq.).
SECTION 1.09.  COMPETITIVE EMPLOYMENT.  (a) Amends Section
21.510(e), Education Code, to require the individual transition
plan, of a student at least 16 years of age enrolled in a special
education program, to include a goal of competitive employment.

     (b) Makes Section 21.510(e), Education Code, applicable to an
     individual transition plan developed for each school year
     beginning with the 1995-1996 school year.
     
     (c) Requires the Central Education Agency (CEA) to study the
     possible effects of amending Section 21.510, Education Code,
     to require development of individual transition plans for
     children at least 14 years of age.  Requires CEA, not later
     than November 15, 1996, to submit its report to the governor
     and legislature.
     
     SECTION 1.10.  TEEN-JOBS PILOT PROGRAM.  (a) Requires CEA to guide
the establishment of pilot programs which encourage teenage parents
to stay in school and advance toward independence.

     (b) Authorizes the program to include certain services.
     
     (c) Requires CEA to report to the governor and the 75th
     Legislature regarding the effectiveness of the program.
     
     (d) Provides that this section expires January 1, 1999.
     
     SECTION 1.11.  PILOT PROGRAM TO ASSIST AFDC CLIENTS IN ACHIEVING
SELF-SUFFICIENCY.  (a) Requires DHS to establish a pilot program to
help families become self-sufficient by extending the period of
supported employment.

     (b) Requires DHS, if it chooses to extend transitional
     benefits for 24 months, to determine the most cost-effective
     method of purchasing medical coverage for participants.
     (c) Requires DHS to report to the governor and the 75th and
     76th Legislatures.
     
     (d) Defines "fill-the-gap budgeting."
     
     (e) Provides that this section expires September 1, 1999.
     
     SECTION 1.12.  APPLICATION DATE.  Makes this article applicable
only to a person who receives financial assistance on or after
September 1, 1995.

       ARTICLE 2.  REDUCING DEPENDENCE ON STATE ASSISTANCE

SECTION 2.01.  ADULT LEARNING LABS FOR AFDC CLIENTS.  Amends
Chapter 11A, Education Code, by adding Section 11.2093, as follows:

     Sec. 11.2093.  EDUCATE TEXAS PROGRAM.  (a) Creates the Educate
     Texas Program (ETP) to provide adult education services to
     clients of Aid to Families with Dependent Children (AFDC) who
     are referred to the program under Section 31.0124, Human
     Resources Code.
     
     (b) Requires CEA, the Texas Higher Education Coordinating
       Board, and the state agency responsible for job training,
       employment, and workforce development to develop jointly a
       system of adult education learning laboratories in public
       schools, community colleges, and other publicly owned
       facilities under this program to provide certain emergency
       services to a person eligible to receive AFDC.
SECTION 2.02.  ELIGIBILITY FOR ADULT LEARNING LABS.  Amends Chapter
31A, Human Resources Code, by adding Section 31.0124, as follows:

     Sec. 31.0124.  REFERRAL TO EDUCATIONAL PROGRAMS.  Requires DHS
     to determine whether a person is eligible for adult education
     services under Section 11.2093, Education Code, and to refer
     the person to the appropriate education service.
     
SECTION 2.03.  ADULT LITERACY AND LEARNING PROGRAMS.  Amends
Chapter 88, Education Code, by adding Subchapter G, as follows:

   SUBCHAPTER G.  TEXAS CENTER FOR ADULT LITERACY AND LEARNING

       Sec. 88.541.  DUTIES OF TEXAS CENTER FOR ADULT LITERACY AND
       LEARNING.  (a) Requires the Texas Center for Adult Literacy
       and Learning (center) at Texas A&M University to evaluate
       recorded materials for use in providing adult literacy
       instruction and to publish, and encourage the use of, a
       guide describing and evaluating those materials.
       
       (b) Requires the center to develop voluntary standards for
         materials used in adult education programs.  Requires the
         center to organize an advisory group and encourage the
         participation of major providers of adult literacy
         programs in this state.  Requires the Texas Department of
         Criminal Justice to designate an employee to participate
         in the initial development of the standards.
         
         (c) Requires the center to develop materials to track
         student progress.
         
         (d) Requires the center to develop and update distribution
         materials describing the need for adult literacy and
         education services and encouraging qualified persons to
         support or assist these programs.
         
         SECTION 2.04.  LITERACY: ENGLISH AS A SECOND LANGUAGE.  Amends
Chapter 13B, Education Code, by adding Section 13.044, as follows:

     Sec. 13.044.  ADULT LITERACY AND ENGLISH AS A SECOND LANGUAGE
     CURRICULUM.  (a) Requires each general academic training
     institution that conducts an approved teacher education
     program to include a unit introducing students to the
     fundamentals of teaching adult literacy and English as a
     second language courses.
     
     (b) Authorizes the institution, if it operates a center for
       professional development and technology, to provide
       opportunities for internships and other field-based training
       and experience in teaching adult literacy or English as a
       second language.
       
       SECTION 2.05.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.  (a)
Amends Article 4413(502), V.T.C.S., by adding Section 22, as
follows:

            Sec. 22.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS. 
       (a) Requires the Health and Human Services Commission to
       assist recipients of financial assistance under Chapter 31,
       Human Resources Code, who are eligible for assistance under
       federal programs to apply for benefits under those programs. 
       Authorizes HHSC to delegate this responsibility to a health
       and human services agency under Section 19, contract with a
       local unit of government, or use another cost-effective
       measure to assist financial assistance recipients who are
       eligible for federal programs.
     (b) Requires HHSC to organize a planning group involving
         DHS, CEA, and TRC to improve workload coordination and to
         assist the consultant in certain ways.
       (b) Requires the planning group, not later than January 15,
     1997, to submit to the legislature and governor a report on
     the progress of the state in transferring recipients of state
     assistance to federal programs.
     
     SECTION 2.06.  FEDERAL TAX CREDIT.  Amends Chapter 403B, Government
Code, by adding Section 403.024, as follows:

     Sec. 403.024.  FEDERAL EARNED INCOME TAX CREDIT.  (a) Makes
     the comptroller's office the lead state agency in promoting
     awareness of the federal earned income tax credit program for
     working families.
     
     (b) Requires the comptroller to recruit other state agencies
       and the governor's office to participate in a coordinated
       campaign to increase awareness of the federal tax program.
       
       SECTION 2.07.  PILOT PROGRAM: TIME-LIMITED BENEFITS.  Requires and
sets forth guidelines concerning the establishment by DHS of a
time-limited benefits pilot program that limits the amount of time
a person can receive financial assistance under Chapter 31, Human
Resources Code.  Requires DHS to submit a report concerning the
effectiveness of the pilot program to the governor and the 75th,
76th, and 77th Legislatures.  Provides that this section expires
September 1, 2001.

SECTION 2.08.  PILOT PROGRAM: EMERGENCY ASSISTANCE FOR FAMILIES IN
A CRISIS.  Requires and sets forth guidelines for the establishment
by DHS of an emergency assistance pilot program to support families
in a crisis.  Requires DHS to report to the governor and 75th and
76th Legislatures regarding the program's success in helping
families in a crisis avoid becoming AFDC clients.  Provides that
this section expires September 1, 1999.

SECTION 2.09.  PILOT PROGRAM: SAVINGS ACCOUNTS FOR AFDC RECIPIENTS. 
Requires and sets forth guidelines for the establishment by DHS of
a pilot program to create individual development accounts for
individuals who receive financial assistance under Chapter 31,
Human Resources Code, to encourage recipients to achieve self-sufficiency.  Grants DHS specific rulemaking authority.  Requires
DHS to report to the governor and the 75th and 76th Legislatures
regarding the success of the program.  Provides that this section
expires September 1, 1999.

SECTION 2.10.  WORK HISTORY AND 100-HOUR RULE WAIVER.  Requires
DHS, not later than December 1, 1995, to reapply for a federal
waiver to eliminate the work history and 100-hour rules for two-parent families and to enable DHS to fully implement Section
31.014, Human Resources Code.

SECTION 2.11.  APPLICATION DATE.  Makes this article applicable
only to a person receiving assistance under Chapter 31, Human
Resources Code, on or after September 1, 1995.

               ARTICLE 3.  REDUCING FRAUD AND ERROR

SECTION 3.01.  PUBLIC ASSISTANCE FRAUD OVERSIGHT TASK FORCE. 
Amends Chapter 21, Human Resources Code, by adding Section 21.0145,
as follows:

     Sec. 21.0145.  PUBLIC ASSISTANCE FRAUD OVERSIGHT TASK FORCE. 
     (a) Creates the Public Assistance Fraud Oversight Task Force
     (task force) to advise and assist DHS and DHS' office of the
     inspector general in improving the efficiency of fraud
     investigations and collections.
     
     (b) Sets forth the composition of the task force.
       
       (c) Provides that the comptroller or comptroller's designee
       serves as the presiding officer of the task force. 
       Authorizes the task force to elect other necessary officers.
       
       (d) Requires the task force to meet at least once each
       fiscal quarter at the call of the presiding officer.
       
       (e) Makes the appointing agency responsible for the expenses
       of a member's service, and provides that members receive no
       additional compensation for service.
       
       (f) Requires DHS' office of the inspector general, at least
       once each fiscal quarter, to provide the task force with
       specific information,
       
       SECTION 3.02.  FRAUD PREVENTION.  (a) Amends Chapter 22, Human
Resources Code, by adding Section 22.027, as follows:

            Sec. 22.027.  FRAUD PREVENTION.  (a) Requires DHS' office of
       the inspector general to compile and disseminate information
       relating to fraud prevention and post-fraud referrals.
            (b) Requires DHS to publicize successful fraud
         prosecutions and establish and promote a toll-free hotline
         for reporting suspected fraud in DHS programs.
         
         (c) Requires DHS to establish an interstate information
         sharing agreement with certain states to prevent a person
         from receiving public assistance simultaneously from more
         than one state.  Requires the agreement to provide for
         sharing information necessary to identify an applicant or
         recipient.
         
         (d) Requires DHS to verify automobile information used as
         criteria for eligibility and establish a computerized
         matching system to prevent an incarcerated individual from
         receiving public assistance benefits illegally.
            Sec. 22.028.  ELECTRONIC BENEFITS TRANSFER: MONITORING.  (a)
       Requires the electronic benefits transfer (EBT) operator,
       with which the department contracts to administer the EBT
       system, to establish procedures to maintain records that
       monitor all debit transactions relating to EBT client
       accounts under this section.  Requires the EBT operator to
       deliver copies of the records to DHS and the comptroller by
       a certain date.  Requires DHS to immediately review the
       records and assess the propriety of the debit transactions.
       
       (b) Requires DHS, after reviewing the records under
         Subsection (a), to take necessary or advisable action to
         ensure compliance with EBT rules by the EBT operator,
         retailers, and clients.
         
         (c) Requires DHS, not later than the first day of each
         month, to send the comptroller a report listing the
         accounts on which enforcement actions or other steps were
         taken by DHS in response to the records received from the
         EBT operator under this section, and the action taken by
         DHS.  Requires the comptroller to review the report. 
         Authorizes the comptroller to solicit the advice of the
         task force regarding the results of DHS' enforcement
         actions.
         
     (b) Requires DHS to evaluate the costs and benefits of the
     five-day time limit prescribed for the investigation of fraud
     referrals and to consider lowering the criteria for acceptance
     of post-fraud referrals.
     
     (c) Requires DHS to require each department office to apply
     the new criteria, if DHS lowers the criteria for accepting
     post-fraud referrals.
     
     SECTION 3.03.  PREVENTING FRAUD THROUGH CERTIFICATE OF TITLE. 
Amends Article 6687-1, V.T.C.S. (Certificate of Title Act), by
adding Section 27a to require the Department of Public Safety
(DPS), in a county in which DPS' automated registration and title
system has been implemented, to require an individual applying for
a certificate of title to give the applicant's social security
number; and requires DPS to enter the number in DPS' electronic
database but may not print the number on the certificate of title.

SECTION 3.04.  PREVENTING FRAUD THROUGH VEHICLE REGISTRATION
DATABASE.  Amends Article 6675a-17A, V.T.C.S., by amending
Subsection (b) and adding Subsection (c), as follows:

     (b) Provides that this section does not apply to the release
     of information to an official of a political subdivision of
     the state if the official is requesting the information to
     determine eligibility for a state public assistance program.
     
     (c) Requires the Texas Department of Transportation to provide
     a dedicated line to its registration record database for
     determination by other state agencies of eligibility for a
     state public assistance program.
     
     SECTION 3.05.  TASK FORCE: ELECTRONIC BENEFITS TRANSFERS.  Amends
Article 4413(502), V.T.C.S., by adding Section 10B, as follows:

     Sec. 10B.  INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS
     TRANSFERS.  (a) Creates an interagency task force to advise
     and assist HHSC in adding new benefit programs to the
     statewide EBT system.
     
     (b) Sets forth the composition of the task force.
       
       (c)-(f) Set forth guidelines for the functioning of the task
       force.
       
       (g)-(h) Set forth duties of the task force and specific
       considerations in determining which programs can be added to
       the state's EBT system.
     SECTION 3.06.  ERROR-RATE REDUCTION.  (a) Amends Chapter 22, Human
Resources Code, by adding Sections 22.025 and 22.026, as follows:

            Sec. 22.025.  ERROR-RATE REDUCTION.  (a) Requires DHS to set
       progressive goals for improving its error rates in the AFDC
       and food stamp programs and to develop a specific schedule
       to meet those goals.
       
       (b) Requires DHS to prepare a quarterly report detailing
         DHS' progress in reaching its goals.
         
         (c) Requires DHS to include in its employee evaluation
         process a rating system that emphasizes error-rate
         reduction and workload.
         
         (d) Requires DHS to take appropriate disciplinary action
         against management and other staff if a region has a
         higher than average error rate that is not reduced in a
         reasonable period.
       Sec. 22.026.  REDUCTION OF CLIENT FRAUD.  Requires DHS to
       ensure that errors attributed to client fraud are
       appropriate and to take immediate action to limit client
       fraud.
     (b) Requires DHS, not later than November 1, 1995, to develop
     a concentrated and effective plan for the city of Houston
     region to reduce DHS' error rates in the AFDC and food stamp
     programs.
     
     (c) Requires DHS to make the first progress report not later
     than September 1, 1995.
     
     SECTION 3.07.  MODIFICATION OF SCREENING AND SERVICE DELIVERY
REQUIREMENTS.  Amends Section 33.002, Human Resources Code, by
adding Subsection (g), to authorize DHS to modify one-day screening
and service delivery requirements if DHS determines that
modification is necessary to achieve a state error rate equal to or
below the national average.

SECTION 3.08.  ELECTRONIC IMAGING PILOT PROGRAM.  Requires DHS to
develop, by rule, a 36-month pilot program in Harris County to
prevent welfare fraud by using fingerprint-imaging of applicants
for and recipients of assistance.  Requires DHS to report quarterly
to the governor and legislature on the status and progress of the
program.  Requires DHS to establish the program not later than
January 1, 1996.

              ARTICLE 4.  INCREASING FEDERAL FUNDING

SECTION 4.01.  FEDERAL FUNDING: MENTAL HEALTH SERVICES.  Amends
Chapter 533B, Health and Safety Code, by adding Section 533.046, as
follows:

     Sec. 533.046.  FEDERAL FUNDING FOR MENTAL HEALTH SERVICES FOR
     CHILDREN AND FAMILIES.  (a) Requires the Texas Department of
     Mental Health and Mental Retardation to enter into an
     interagency agreement with DHS to amend the eligibility
     requirements of the state's emergency assistance plan, in
     order to include mental health emergencies, and to prescribe
     the procedures for agencies in delegating the administration
     of mental health emergency assistance.
     
     (b) Sets forth requirements for the interagency agreement.
       
       (c) Requires DHS to allocate 66 percent of federal funds
       received under this section to local mental health and
       mental retardation authorities.
       
       SECTION 4.02.  FEDERAL FUNDING: CHEMICAL DEPENDENCY SERVICES.  (a)
Amends Article 4413(502), V.T.C.S., by adding Section 10A, as
follows:

            Sec. 10A.  FEDERAL FUNDING FOR CHEMICAL DEPENDENCY SERVICES. 
       Requires HHSC to amend, in coordination with the Texas
       Commission on Alcohol and Drug Abuse and DHS, requirements
       of the state's emergency assistance plan under the federal
       Social Security Act to include either a child or a
       significant adult in a child's family who needs chemical
       dependency treatment.
     (b) Requires the Texas Department on Alcohol and Drug Abuse to
     continue to study the feasibility of amending the state's
     Medicaid plan to include chemical dependency treatment as an
     allowable service.
     
     SECTION 4.03.  FEDERAL FUNDS; FOSTER CARE.  (a) Amends Article
4413(503), V.T.C.S., by adding Section 12A, as follows:

            Sec. 12A.  FEDERAL FUNDING FOR CERTAIN CHILDREN.  (a) 
       Requires the Department of Protective and Regulatory
       Services (DPRS) to classify each child in the
       conservatorship of the state and placed in the home of a
       relative as a "child in foster care" for the purposes of
       Medicaid eligibility only.  Provides that a "child in foster
       care" is not automatically eligible to receive foster care
       payments because of that classification.
     (b) Requires DPRS to ensure that each time study used for
         allocating costs identifies all costs incurred on behalf
         of the child, if the child's case plan clearly indicates
         that foster care is the planned arrangement for the child.
         
         (c) Requires DPRS to claim, at the highest rate authorized
         by federal law, federal financial participation under the
         federal Social Security Act for all nonrecurring adoption
         expenses.  Requires DPRS to include all charges from state
         attorneys and state courts and any applicable overhead. 
         Authorizes DPRS to claim the expenses as either
         administrative or training expenses, depending on which
         results in a higher federal match.
       (b) Requires DPRS to file an adjustment to its previous
     quarterly claims.
     
     (c) Requires DPRS to request a waiver from the two-year
     limitation on the period in which the state can file certain
     claims.
     
                  ARTICLE 5.  IMMUNIZATIONS
     
     SECTION 5.01.  IMMUNIZATIONS FOR CHILDREN.  Amends Section 31.031,
Human Resources Code, by adding Subsections (c), (d), and (e), as
follows:

     (c) Requires DHS to require the applicant to provide proof
     that each child for whom the applicant will receive assistance
     has been immunized, is currently receiving an immunization
     series, or is exempted under Section 161.004(d), Health and
     Safety Code.
     
     (d) Requires an applicant, who cannot provide proof when
     applying, to provide the proof not later than the 180th day
     after the date DHS determines the applicant is eligible for
     assistance.
     
     (e) Requires DHS to provide the applicant with information
     regarding immunization services available in the applicant's
     residential area.  Requires DHS, if the applicant does not
     read or comprehend English, to provide the information in a
     language that the applicant reads or comprehends.
     
     (f) Requires DHS, by rule, to provide sanctions for failure to
     comply with Subsection (c) or (d).
     
          ARTICLE 6.  WAIVER; EFFECTIVE DATE; EMERGENCY

SECTION 6.01.  WAIVER.  Requires a state agency, if it determines
that a waiver or authorization from a federal agency is necessary
for implementation, to request the waiver or authorization, and
authorizes DHS to delay implementation until either is granted.

SECTION 6.02.  Effective date: September 1, 1995.

SECTION 6.03.  Emergency clause.