By Cuellar of Webb                                    H.B. No. 1403
       74R4276 MLR-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the provision of services and other assistance to needy
    1-3  people, including health and human services and assistance in
    1-4  becoming self-dependent.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6                     ARTICLE 1.  WORK REQUIREMENTS
    1-7        SECTION 1.01.  ASSISTANCE PRIORITY IS WORK.  Section 31.001,
    1-8  Human Resources Code, is amended to read as follows:
    1-9        Sec. 31.001.  Aid to Families With Dependent Children.  The
   1-10  department shall provide financial assistance and services to
   1-11  families with dependent children in accordance with the provisions
   1-12  of this chapter.  The department shall give first priority in
   1-13  administering this chapter to assisting an adult recipient of or
   1-14  unemployed applicant for the financial assistance and services in
   1-15  finding and retaining a job.
   1-16        SECTION 1.02.  CHILD CARE WORK EXEMPTION.  Subchapter A,
   1-17  Chapter 31, Human Resources Code, is amended by adding Section
   1-18  31.0123 to read as follows:
   1-19        Sec. 31.0123.  EXEMPTION FROM JOBS TRAINING PROGRAM.  The
   1-20  department, in accordance with federal law governing the job
   1-21  opportunities and basic skills (JOBS) training program under Part
   1-22  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682),
   1-23  shall exempt a caretaker of a dependent child younger than one year
   1-24  of age from participation in a JOBS component required by the
    2-1  department.
    2-2        SECTION 1.03.  EMPLOYMENT PROGRAMS.  (a)  Chapter 31, Human
    2-3  Resources Code, is amended by adding Subchapter E to read as
    2-4  follows:
    2-5             SUBCHAPTER E.  PROGRAMS TO FOSTER EMPLOYMENT
    2-6        Sec. 31.101.  EMPLOYMENT PROGRAMS.  (a)  In cooperation with
    2-7  the state agency charged with primary responsibility for job
    2-8  training, employment, and workforce development in this state, the
    2-9  department by rule shall develop the programs prescribed by this
   2-10  subchapter to assist recipients of financial assistance and
   2-11  services under this chapter in finding and retaining employment.
   2-12  The department shall develop the programs in accordance with
   2-13  federal law as a part of the job opportunities and basic skills
   2-14  (JOBS) training program under Part F, Subchapter IV, Social
   2-15  Security Act (42 U.S.C. Section 682).
   2-16        (b)  In adopting rules governing a program prescribed by this
   2-17  subchapter, the department shall:
   2-18              (1)  establish the criteria for determining which
   2-19  recipients who are eligible to participate in the JOBS training
   2-20  program may be required to participate in a particular program; and
   2-21              (2)  ensure that a recipient who is incapable of
   2-22  participating in a particular program is not required to
   2-23  participate in that program.
   2-24        (c)  A local workforce development board created under
   2-25  Section 4.01, Workforce and Economic Competitiveness Act (Article
   2-26  5190.7a, Vernon's Texas Civil Statutes), may implement in a
   2-27  workforce development area one or more programs prescribed by this
    3-1  subchapter.
    3-2        Sec. 31.102.  WORK FIRST PROGRAM.  (a)  The department by
    3-3  rule shall develop a work first program.
    3-4        (b)  In adopting rules under this section, the department
    3-5  shall:
    3-6              (1)  use programs in other states, such as the
    3-7  Wisconsin Work First and the New York Jobs FIRST initiatives, as
    3-8  models;
    3-9              (2)  ensure that the work first program provides to a
   3-10  participant job readiness training and employment information and
   3-11  services that will motivate the participant to find and apply for a
   3-12  job, including:
   3-13                    (A)  information on the advantages of employment
   3-14  over dependence on financial assistance;
   3-15                    (B)  information about the effects of attire and
   3-16  behavior on securing and advancing in employment;
   3-17                    (C)  training in interview skills;
   3-18                    (D)  information on work ethics; and
   3-19                    (E)  diagnostic job-related testing and
   3-20  employment counseling;
   3-21              (3)  ensure that the work first program provides to a
   3-22  participant the job readiness training and employment information
   3-23  and services required by Subsection (b)(2) through job clubs, job
   3-24  readiness activities, or job search activities;
   3-25              (4)  establish the number of hours and the length of
   3-26  time a participant may be required to attend a job club, job
   3-27  readiness activity, or job search activity under the work first
    4-1  program;
    4-2              (5)  ensure that the work first program is designed so
    4-3  that the state provides child-care services as necessary for a
    4-4  participant to meet training requirements under the program; and
    4-5              (6)  authorize an entity that implements the work first
    4-6  program to contract with a local governmental entity or nonprofit
    4-7  agency or organization to provide a participant the training,
    4-8  counseling, and other assistance the participant needs.
    4-9        Sec. 31.103.  BUSINESS INTERNSHIP PROGRAM.  (a)  The
   4-10  department by rule shall develop a business internship program.
   4-11        (b)  In adopting rules under this section, the department
   4-12  shall:
   4-13              (1)  use programs in other states, such as the Utah
   4-14  Single Parent Economic Independence Demonstration Project, as
   4-15  models;
   4-16              (2)  authorize an entity that implements the business
   4-17  internship program to enter into an agreement with a business
   4-18  entity to provide employment to a participant;
   4-19              (3)  ensure that the business internship program is
   4-20  designed to give a participant the opportunity to obtain marketable
   4-21  job skills;
   4-22              (4)  ensure that a participating business entity
   4-23  assigns at least one employee of the business entity to serve as a
   4-24  mentor to a participant;
   4-25              (5)  establish the number of hours and the length of
   4-26  time a participant may be required to serve as an intern in a
   4-27  participating business;
    5-1              (6)  provide to a participant, in addition to the
    5-2  financial assistance and services provided to that participant
    5-3  under this chapter, an amount of money for work-related expenses
    5-4  such as transportation and clothing expenses incurred by the
    5-5  participant while serving as an intern in the program; and
    5-6              (7)  require that the mentor of a participant assist
    5-7  the participant by providing employment references and job
    5-8  networking opportunities.
    5-9        (c)  In determining eligibility for financial assistance
   5-10  under this chapter, the department may not consider as income the
   5-11  amount of money a participant in the business internship program
   5-12  receives for work-related expenses under Subsection (b)(6).
   5-13        Sec. 31.104.  TEXAS WORKS PROGRAM.  (a)  The department by
   5-14  rule shall develop a Texas works program.
   5-15        (b)  In adopting rules under this section, the department
   5-16  shall:
   5-17              (1)  authorize an entity that implements the Texas
   5-18  works program to contract with a local nonprofit agency or
   5-19  organization or local governmental agency or entity to provide
   5-20  motivational and job readiness training to a participant and to
   5-21  successfully place that participant in a job for several months;
   5-22              (2)  ensure that each entity, organization, or agency
   5-23  that enters into a contract under Subdivision (1) is paid a
   5-24  specified amount of money for each participant successfully placed
   5-25  by the entity, organization, or agency in a job;
   5-26              (3)  determine the amount of money an entity,
   5-27  organization, or agency is entitled to receive for providing to a
    6-1  participant the training required by Subdivision (1); and
    6-2              (4)  prescribe the length of time a participant must be
    6-3  at a job before the placing entity, organization, or agency
    6-4  receives compensation under this section for successfully placing
    6-5  the participant at the job.
    6-6        Sec. 31.105.  COMMUNITY WORK EXPERIENCE PROGRAM.  (a)  The
    6-7  department by rule shall develop a community work experience
    6-8  program.
    6-9        (b)  In adopting rules under this section, the department
   6-10  shall:
   6-11              (1)  ensure that participation in the community work
   6-12  experience program will not result in the displacement of an
   6-13  employee from an existing position or the elimination of a vacant
   6-14  position;
   6-15              (2)  ensure that the community work experience program
   6-16  will not impair an existing service contract or collective
   6-17  bargaining agreement;
   6-18              (3)  ensure that an entity or agency that enters into
   6-19  an agreement with an entity that implements the community work
   6-20  experience program under this section provides to a participant,
   6-21  without paying the participant a salary, job training and work
   6-22  experience in certain areas within the entity or agency;
   6-23              (4)  require that each entity or agency that enters
   6-24  into a cooperative agreement with an entity that implements the
   6-25  community work experience program under this section identify
   6-26  positions within the entity or agency that will enable a
   6-27  participant to gain the skills and experience necessary to be able
    7-1  to compete in the labor market for comparable positions; and
    7-2              (5)  amend the service delivery system of the JOBS
    7-3  training program to require a participant in the JOBS training
    7-4  program who is unemployed after completing the JOBS readiness
    7-5  activities outlined in the participant's employability plan,
    7-6  including job search, to participate in the community work
    7-7  experience program.
    7-8        (c)  The department shall authorize an entity that implements
    7-9  the community work experience program to enter into written
   7-10  nonfinancial cooperative agreements with entities that receive
   7-11  funds under a federal Head Start program and with state agencies,
   7-12  including institutions of higher education or other entities of
   7-13  state government.  To be eligible to enter into a contract under
   7-14  this section, the entity or agency must employ at least 250
   7-15  persons.  The contracting parties may waive this requirement by
   7-16  agreement.
   7-17        (d)  The department and an entity or agency that enters into
   7-18  an agreement with an entity that implements the community work
   7-19  experience program under this section must establish participation
   7-20  requirements for the participating entity or agency under the
   7-21  community work experience program.  The requirements must be
   7-22  contained in the agreement.
   7-23        Sec. 31.106.  SUBSIDIZED EMPLOYMENT PROGRAM.  (a)  The
   7-24  department by rule shall develop a subsidized employment program
   7-25  that requires a participant in the program to work in exchange for
   7-26  the receipt of financial assistance and services under this
   7-27  chapter.
    8-1        (b)  In adopting rules under this section, the department
    8-2  shall:
    8-3              (1)  use programs in other states, such as the Oregon
    8-4  Jobs Plus initiative, as models;
    8-5              (2)  authorize an entity that implements the subsidized
    8-6  employment program to enter into an agreement with a business
    8-7  entity to provide employment to a participant;
    8-8              (3)  ensure that a participating business entity in the
    8-9  subsidized employment program provides on-the-job training to a
   8-10  participant; and
   8-11              (4)  ensure that a participating business entity in the
   8-12  subsidized employment program:
   8-13                    (A)  employs a participant for a specific length
   8-14  of time set by the department; and
   8-15                    (B)  is paid a salary subsidy of at least $2 but
   8-16  not more than $3 an hour for employing a participant.
   8-17        Sec. 31.107.  SELF-EMPLOYMENT ASSISTANCE PROGRAM.  (a)  The
   8-18  department by rule shall develop a self-employment assistance
   8-19  program.
   8-20        (b)  In adopting rules under this section, the department
   8-21  shall:
   8-22              (1)  ensure that the self-employment assistance program
   8-23  provides to a participant entrepreneurial training, business
   8-24  counseling, and technical assistance for the purpose of
   8-25  establishing a business and becoming self-employed, including:
   8-26                    (A)  training in business budgeting and reporting
   8-27  procedures;
    9-1                    (B)  training in business records management;
    9-2                    (C)  access to computer training;
    9-3                    (D)  technical assistance in conducting market
    9-4  research;
    9-5                    (E)  technical assistance in assessing the
    9-6  participant's interests and skills relating to entrepreneurial
    9-7  opportunities; and
    9-8                    (F)  technical assistance in creating a business
    9-9  plan; and
   9-10              (2)  authorize an entity that implements the
   9-11  self-employment assistance program to contract with a local
   9-12  governmental entity or nonprofit agency or organization to provide
   9-13  a participant the training, counseling, and other assistance
   9-14  required by this section.
   9-15        (c)  The state shall provide to a participant who opens and
   9-16  operates a business financial assistance and services under this
   9-17  chapter and medical assistance under the state Medicaid program
   9-18  until the first anniversary of the date the participant begins
   9-19  operating the participant's own business, regardless of the amount
   9-20  of assets owned or the amount of income earned by the participant
   9-21  during that period.
   9-22        (b)  Section 31.0125, Human Resources Code, is repealed.
   9-23        SECTION 1.04.  DEMONSTRATION PROJECTS; FUND.  Article 4,
   9-24  Workforce and Economic Competitiveness Act (Article 5190.7a,
   9-25  Vernon's Texas Civil Statutes), is amended by adding Sections
   9-26  4.055-4.057 to read as follows:
   9-27        Sec. 4.055.  DEMONSTRATION PROJECTS.  (a)  In this section:
   10-1              (1)  "Board" means a local workforce development board.
   10-2              (2)  "Workforce development agency" means the state
   10-3  agency charged with primary responsibility for the implementation
   10-4  and consolidation of labor, employment, and job training programs
   10-5  in this state.
   10-6        (b)  In addition to the functions performed under Section
   10-7  4.04 of this Act and the local plan required under Section 4.05 of
   10-8  this Act, each board may establish and operate localized programs
   10-9  to expand education, training, and employment in the workforce
  10-10  development area administered by the board.  The board may design
  10-11  creative programs that fit the unique characteristics and needs of
  10-12  its workforce development area.
  10-13        (c)  A board that designs a program under this section shall
  10-14  submit a written proposal for approval of the program to the
  10-15  workforce development agency.  The workforce development agency
  10-16  shall approve any program that clearly demonstrates the ability to:
  10-17              (1)  draw on and unite the resources of the local
  10-18  community; and
  10-19              (2)  determine and meet the needs of the local service
  10-20  populations, businesses, and industries.
  10-21        (d)  A board shall implement and administer a program
  10-22  approved by the workforce development agency under this section as
  10-23  a local demonstration project.  The board shall report to the
  10-24  workforce development agency on a quarterly basis regarding the
  10-25  administration of the project and the effectiveness of the project
  10-26  in serving the workforce development needs of the community.
  10-27        (e)  A board shall submit any proposed changes in the program
   11-1  to the workforce development agency in writing.  The workforce
   11-2  development agency must approve the proposed changes before the
   11-3  changes may be adopted and implemented by the board.
   11-4        Sec. 4.056.  CERTAIN PROGRAMS FOR AFDC RECIPIENTS.  (a)  In
   11-5  addition to the programs established under Section 4.055 of this
   11-6  Act, each local workforce development board shall adopt programs to
   11-7  enhance the ability of recipients of financial assistance and
   11-8  services under Chapter 31, Human Resources Code, who are eligible
   11-9  to participate in the JOBS training program to obtain and retain
  11-10  gainful employment.
  11-11        (b)  In adopting programs under this section, the board shall
  11-12  consider the programs established under Subchapter E, Chapter 31,
  11-13  Human Resources Code.  Within the parameters established by that
  11-14  subchapter, the board may adapt a program to serve more effectively
  11-15  the needs of the recipients described by Subsection (a) who are
  11-16  residing in the workforce development area.
  11-17        (c)  In this section, "JOBS training program" means the job
  11-18  opportunities and basic skills (JOBS) training program under Part
  11-19  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).
  11-20        Sec. 4.057.  REVOLVING FUND ACCOUNT.  (a)  A special
  11-21  revolving fund account is established in the state treasury to be
  11-22  known as the local workforce development board demonstration
  11-23  project account.  The account may be used only for:
  11-24              (1)  the initial implementation costs of a
  11-25  demonstration project approved under Section 4.055 of this Act; and
  11-26              (2)  small loans for new education, training, and
  11-27  employment programs created by a local workforce development board
   12-1  under a demonstration project.
   12-2        (b)  The account consists of:
   12-3              (1)  money the legislature appropriates to the account;
   12-4              (2)  donations made to the account;
   12-5              (3)  repayment of small loans made under the provisions
   12-6  of a demonstration project;
   12-7              (4)  revenue received from state and federal education,
   12-8  training, and job programs; and
   12-9              (5)  depository interest and investment income earned
  12-10  on amounts in the account.
  12-11        (c)  Money drawn from the revolving fund account for the
  12-12  operation of education, training, and job programs shall be paid
  12-13  back to the account as permanent revenues from state and federal
  12-14  education, training, and job programs become available.
  12-15        (d)  Sections 403.094 and 403.095, Government Code, do not
  12-16  apply to the account.
  12-17        SECTION 1.05.  EMPLOYMENT OPPORTUNITIES FOR PERSONS WITH
  12-18  DISABILITIES.  (a)  Chapter 121, Human Resources Code, is amended
  12-19  by adding Sections 121.0014 and 121.0015 to read as follows:
  12-20        Sec. 121.0014.  VISION STATEMENT.  (a)  The Health and Human
  12-21  Services Commission, each health and human services agency, and
  12-22  each state agency that administers a workforce development program
  12-23  shall adopt the following statement of vision:
  12-24        The State of Texas shall ensure that all Texans with
  12-25        disabilities have the opportunity and support necessary
  12-26        to work in individualized, competitive employment in
  12-27        the community and to have choices about their work and
   13-1        careers.
   13-2        (b)  In this section, "health and human services agency"
   13-3  means an agency listed by Section 19, Article 4413(502), Revised
   13-4  Statutes.
   13-5        Sec. 121.0015.  INTERAGENCY WORK GROUP.  (a)  An interagency
   13-6  work group is created to implement the action plan adopted at the
   13-7  1994 Supported Employment Summit.
   13-8        (b)  The work group is composed of a representative of the:
   13-9              (1)  Central Education Agency, appointed by the
  13-10  commissioner of education;
  13-11              (2)  Texas Commission for the Blind, appointed by the
  13-12  commissioner of that agency;
  13-13              (3)  Texas Department of Mental Health and Mental
  13-14  Retardation, appointed by the commissioner of mental health and
  13-15  mental retardation; and
  13-16              (4)  Texas Rehabilitation Commission, appointed by the
  13-17  commissioner of that agency.
  13-18        (c)  A member of the work group serves at the will of the
  13-19  appointing agency.
  13-20        (d)  The work group shall elect a presiding officer and any
  13-21  other necessary officers.
  13-22        (e)  The work group shall meet at the call of the presiding
  13-23  officer.
  13-24        (f)  The appointing agency is responsible for the expenses of
  13-25  a member's service on the work group.  A member of the work group
  13-26  receives no additional compensation for serving on the work group.
  13-27        (g)  The comptroller shall monitor the work group and the
   14-1  implementation of the action plan.
   14-2        (b)  Not later than November 15, 1996, the comptroller shall
   14-3  submit to the governor and the legislature a report describing the
   14-4  progress made toward implementing the action plan adopted at the
   14-5  1994 Supported Employment Summit.
   14-6        SECTION 1.06.  WORK INCENTIVES.  Subchapter B, Chapter 111,
   14-7  Human Resources Code, is amended by adding Section 111.0205 to read
   14-8  as follows:
   14-9        Sec. 111.0205.  WORK INCENTIVES AND SUPPLEMENTAL SECURITY
  14-10  INCOME (SSI).  (a)  The commission shall employ a person at the
  14-11  commission's central office to:
  14-12              (1)  train counselors to understand and use work
  14-13  incentives; and
  14-14              (2)  review cases to ensure that commission clients are
  14-15  informed of the availability of and assisted in obtaining work
  14-16  incentives and Supplemental Security Income (SSI) (42 U.S.C.
  14-17  Section 1381 et seq.).
  14-18        (b)  The commission shall ensure that each contract to
  14-19  provide services to clients of a community center include a
  14-20  provision requiring the center to:
  14-21              (1)  train counselors about federal social security
  14-22  incentives to fund supported employment;
  14-23              (2)  determine each client's eligibility for work
  14-24  incentives and SSI; and
  14-25              (3)  provide clients and their families with related
  14-26  information.
  14-27        SECTION 1.07.  SHELTERED WORKSHOPS.  Section 122.004(d),
   15-1  Human Resources Code, is amended to read as follows:
   15-2        (d)  The committee shall contract with sheltered workshops to
   15-3  provide any necessary services, including assisting the workshops
   15-4  in submitting applications for the selection of suitable products
   15-5  or services and distributing orders among workshops <make rules
   15-6  regarding designation of a central nonprofit agency to facilitate
   15-7  the distribution of orders among agencies serving blind or other
   15-8  severely disabled persons and regarding other matters related to
   15-9  the state's use of the products and services of blind and severely
  15-10  disabled persons>.  The committee shall establish commission rates
  15-11  that a workshop must pay to the committee for the provision of
  15-12  services under this subsection.  The commission rate shall be
  15-13  included in the selling price of a commodity or in the contract
  15-14  price of a service and may not exceed four percent of the
  15-15  applicable price.  Commissions collected under this section may be
  15-16  appropriated only to the committee to administer this chapter and
  15-17  to provide additional supported employment opportunities.
  15-18        SECTION 1.08.  COMPETITIVE EMPLOYMENT.  (a)  Section
  15-19  21.510(e), Education Code, is amended to read as follows:
  15-20        (e)  Each school district shall develop and annually review
  15-21  an individual transition plan (ITP) for each student enrolled in a
  15-22  special education program who is at least 16 years of age.  The ITP
  15-23  shall include a goal of competitive employment.  The ITP shall be
  15-24  developed in a separate document from the individualized education
  15-25  program (IEP) and shall not be considered a part of the IEP.  The
  15-26  school district shall coordinate development of the ITP with any
  15-27  participating agency as provided in the memorandum of understanding
   16-1  in order to provide continuity and coordination of services among
   16-2  the various agencies and between the ITP and IEP.  The district
   16-3  shall request the participation in the development of the ITP of
   16-4  any participating agency recommended by school personnel or
   16-5  requested by the student or the student's parent.  The district
   16-6  shall invite the student and the student's parents or guardians to
   16-7  participate in the development of the ITP.  Only those components
   16-8  of the ITP which are the responsibility of the district shall be
   16-9  incorporated into the student's IEP.  Only the failure to implement
  16-10  those components of a student's ITP which are included in the IEP
  16-11  and are the responsibility of the school district shall be subject
  16-12  to the due process procedures of the Education of the Handicapped
  16-13  Act, Public Law 94-142 (20 U.S.C.  Section 1400 et seq.) or to
  16-14  Central Education Agency complaint procedures.  The failure of the
  16-15  district to develop and annually review an ITP for a student shall
  16-16  be subject only to the Central Education Agency complaint
  16-17  procedures and not to the due process procedures of the Education
  16-18  of the Handicapped Act, Public Law 94-142 (20 U.S.C. Section 1400
  16-19  et seq.).  A monitoring visit under Section 21.509 of this code
  16-20  shall include a review of the transition planning requirements
  16-21  under this section.  A school district is not liable for the
  16-22  failure of another agency to implement those components of the ITP
  16-23  that are designated as the responsibility of that agency under the
  16-24  memorandum of understanding.
  16-25        (b)  Section 21.510(e), Education Code, as amended by this
  16-26  section, applies to an individual transition plan developed for
  16-27  each school year beginning with the 1995-1996 school year.
   17-1        (c)  The Central Education Agency shall study the possible
   17-2  effects of amending Section 21.510, Education Code, to require the
   17-3  development of an individual transition plan for each child who is
   17-4  at least 14 years of age.  Not later than November 15, 1996, the
   17-5  agency shall submit to the governor and the legislature a report on
   17-6  the effects of changing the age requirement.
   17-7        SECTION 1.09.  PILOT PROGRAM TO ASSIST AFDC CLIENTS IN
   17-8  ACHIEVING SELF-SUFFICIENCY.  (a)  The Texas Department of Human
   17-9  Services shall establish a pilot program to extend the period of
  17-10  supported employment for families who receive financial assistance
  17-11  under Chapter 31, Human Resources Code, to help those families
  17-12  become self-sufficient.  In establishing this program the
  17-13  department may:
  17-14              (1)  use a form of fill-the-gap budgeting; or
  17-15              (2)  extend transitional benefits to 24 months.
  17-16        (b)  If the department chooses to extend transitional
  17-17  benefits to 24 months, the department shall determine whether
  17-18  purchasing medical coverage for participants through the state's
  17-19  Uniform Group Insurance Program is more cost-effective than
  17-20  Medicaid coverage.
  17-21        (c)  The department shall report to the governor and the 75th
  17-22  and 76th Legislatures regarding the program's success in assisting
  17-23  families in becoming more self-sufficient.
  17-24        (d)  In this section, "fill-the-gap budgeting" means a system
  17-25  of budgeting in which benefits are gradually lowered using a
  17-26  percentage of the difference between the standard of need and the
  17-27  countable income to calculate the grant benefit.
   18-1        (e)  This section expires September 1, 1999.
   18-2        SECTION 1.10.  APPLICATION DATE.  This article applies only
   18-3  to a person who receives financial assistance under Chapter 31,
   18-4  Human Resources Code, on or after September 1, 1995, regardless of
   18-5  the date on which eligibility for that assistance was determined.
   18-6          ARTICLE 2.  REDUCING DEPENDENCE ON STATE ASSISTANCE
   18-7        SECTION 2.01.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.
   18-8  (a)  Article 4413(502), Revised Statutes, is amended by adding
   18-9  Section 22 to read as follows:
  18-10        Sec. 22.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.  (a)
  18-11  The commission shall contract on a no-risk contingency basis with a
  18-12  consulting firm to assist recipients of financial assistance under
  18-13  Chapter 31, Human Resources Code, who are eligible for assistance
  18-14  under federal programs to apply for benefits under those federal
  18-15  programs.  The consulting firm must be:
  18-16              (1)  qualified to work with the Supplemental Security
  18-17  Income (SSI) (42 U.S.C. Section 1381 et seq.) and the Social
  18-18  Security Disability Insurance (SSDI) (42 U.S.C. Section 401 et
  18-19  seq.) programs; and
  18-20              (2)  skilled in interpreting federal:
  18-21                    (A)  eligibility guidelines;
  18-22                    (B)  determination processes;
  18-23                    (C)  work programs; and
  18-24                    (D)  definitions of disabilities.
  18-25        (b)  The contract shall include:
  18-26              (1)  a provision that bases the compensation the
  18-27  contractor receives on the number of cases converted from state
   19-1  financial assistance to SSI or SSDI;
   19-2              (2)  appropriate performance requirements, including:
   19-3                    (A)  the minimum number of applications for
   19-4  federal assistance that must be filed;
   19-5                    (B)  the minimum number of reconsiderations
   19-6  requested;
   19-7                    (C)  the percentage of administrative law
   19-8  hearings that must be filed;
   19-9                    (D)  the percentage of grants approved by the
  19-10  federal programs; and
  19-11                    (E)  time guidelines; and
  19-12              (3)  an arrangement for training state employees to
  19-13  transfer eligible state financial assistance recipients to the
  19-14  federal programs.
  19-15        (c)  The state shall deduct from the lump-sum payment a
  19-16  recipient receives from the federal government when that person is
  19-17  accepted in the SSI or SSDI program any state financial assistance
  19-18  paid to that person during the period between the person's
  19-19  application for the federal program and the person's subsequent
  19-20  acceptance into it.
  19-21        (d)  The commission shall organize a planning group involving
  19-22  the Texas Department of Human Services, the Central Education
  19-23  Agency, and the Texas Rehabilitation Commission to:
  19-24              (1)  improve workload coordination between those
  19-25  agencies as necessary to administer this section; and
  19-26              (2)  assist the consultant required by this section by:
  19-27                    (A)  providing the consultant with regulations,
   20-1  procedures, client records, and other necessary information; and
   20-2                    (B)  helping to train state employees to
   20-3  correctly screen applicants under this section.
   20-4        (b)  Not later than January 15, 1997, the planning group
   20-5  required by Section 22, Article 4413(502), Revised Statutes, as
   20-6  added by this section, shall submit to the legislature and governor
   20-7  a report on the progress the state has made in transferring
   20-8  recipients of state financial assistance to federal programs.
   20-9        SECTION 2.02.  PILOT PROGRAM:  TIME-LIMITED BENEFITS.  (a)
  20-10  The Texas Department of Human Services shall establish a
  20-11  time-limited benefits pilot program that limits the amount of time
  20-12  a person can receive financial assistance under Chapter 31, Human
  20-13  Resources Code.
  20-14        (b)  In implementing the time-limited benefits pilot program,
  20-15  the department:
  20-16              (1)  shall require a person to participate in the
  20-17  program if the person:
  20-18                    (A)  is eligible to participate in the job
  20-19  opportunities and basic skills (JOBS) training program under Part
  20-20  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682); and
  20-21                    (B)  is not the caretaker of a dependent child
  20-22  who is younger than one year of age;
  20-23              (2)  may not provide financial assistance under Chapter
  20-24  31, Human Resources Code, to a participant in the pilot program or
  20-25  to anyone for whom the participant receives financial assistance if
  20-26  the participant has received the financial assistance for a
  20-27  cumulative total of two years;
   21-1              (3)  may not consider financial assistance provided to
   21-2  a participant before January 1, 1995, in determining the
   21-3  participant's eligibility for financial assistance under
   21-4  Subdivision (2) of this subsection;
   21-5              (4)  shall provide that a participant in the pilot
   21-6  program may reapply with the department for financial assistance on
   21-7  or after the third anniversary of the date on which the participant
   21-8  is totally disqualified from receiving financial assistance because
   21-9  of the application of Subdivision (2) of this subsection;
  21-10              (5)  may extend the amount of time a participant in the
  21-11  pilot program is entitled to receive financial assistance if after
  21-12  an investigation the department determines that limiting the amount
  21-13  of time the participant can receive financial assistance will
  21-14  impose an undue hardship on the participant or the participant's
  21-15  family; and
  21-16              (6)  shall establish the criteria for determining what
  21-17  constitutes undue hardship under Subdivision (5) of this
  21-18  subsection.
  21-19        (c)  The department shall:
  21-20              (1)  adopt rules and set a timetable to implement and
  21-21  complete the pilot program; and
  21-22              (2)  select at least one county in which to establish
  21-23  the pilot program that has:
  21-24                    (A)  a population of 250,000 or more; and
  21-25                    (B)  low unemployment and an effective JOBS
  21-26  program placement-rate.
  21-27        (d)  The department shall establish the pilot program
   22-1  required by this section not later than January 1, 1996.
   22-2        (e)  The Texas Department of Human Services shall submit to
   22-3  the governor and the 75th, 76th, and 77th Legislatures a report
   22-4  concerning the effectiveness of the pilot program.
   22-5        (f)  This section expires September 1, 2001.
   22-6        SECTION 2.03.  PILOT PROGRAM:  EMERGENCY ASSISTANCE FOR
   22-7  FAMILIES IN A CRISIS.  (a)  The Texas Department of Human Services
   22-8  shall seek federal funding that would allow the department to
   22-9  establish an emergency assistance pilot program to support families
  22-10  in a crisis.
  22-11        (b)  The department shall establish the pilot program in a
  22-12  high-employment area of the state or an area that uses the
  22-13  electronic benefits transfer system.
  22-14        (c)  The department by rule shall develop guidelines to
  22-15  administer the program, including:
  22-16              (1)  eligibility guidelines;
  22-17              (2)  guidelines specifying whether the assistance is a
  22-18  one-time cash payment to a family; and
  22-19              (3)  guidelines specifying whether an applicant who
  22-20  receives the emergency assistance must agree to forgo applying for
  22-21  financial assistance under Chapter 31, Human Resources Code, for
  22-22  one year, or another appropriate limitation determined by the
  22-23  department.
  22-24        (d)  The department shall report to the governor and the 75th
  22-25  and 76th Legislatures regarding the program's success in helping
  22-26  families in a crisis avoid becoming AFDC clients.
  22-27        (e)  This section expires September 1, 1999.
   23-1        SECTION 2.04.  WORK HISTORY AND 100-HOUR RULE WAIVER.  Not
   23-2  later than December 1, 1995, the Texas Department of Human Services
   23-3  shall reapply for a federal waiver to eliminate the work history
   23-4  and 100-hour rules for two-parent families and to enable the
   23-5  department to fully implement Section 31.014, Human Resources Code.
   23-6        SECTION 2.05.  APPLICATION DATE.  This article applies only
   23-7  to a person who receives financial assistance under Chapter 31,
   23-8  Human Resources Code, on or after September 1, 1995, regardless of
   23-9  the date on which eligibility for that assistance was determined.
  23-10                 ARTICLE 3.  REDUCING FRAUD AND ERROR
  23-11        SECTION 3.01.  TASK FORCE:  ELECTRONIC BENEFITS TRANSFERS.
  23-12  Article 4413(502), Revised Statutes, is amended by adding Section
  23-13  10B to read as follows:
  23-14        Sec. 10B.  INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS
  23-15  TRANSFERS.  (a)  An interagency task force is created to advise and
  23-16  assist the commission in adding new benefit programs to the
  23-17  statewide electronic benefits transfer (EBT) system.
  23-18        (b)  The task force is composed of:
  23-19              (1)  a representative of:
  23-20                    (A)  the attorney general's office, appointed by
  23-21  the attorney general;
  23-22                    (B)  the comptroller's office, appointed by the
  23-23  comptroller;
  23-24                    (C)  the commission, appointed by the
  23-25  commissioner;
  23-26                    (D)  the Texas Department of Health, appointed by
  23-27  the commissioner of public health;
   24-1                    (E)  the Texas Department of Human Services,
   24-2  appointed by the commissioner of human services;
   24-3                    (F)  the Texas Employment Commission, appointed
   24-4  by the chairman of that agency; and
   24-5                    (G)  the Texas Rehabilitation Commission,
   24-6  appointed by the commissioner of that agency; and
   24-7              (2)  two representatives of each of the following
   24-8  groups, appointed by the comptroller:
   24-9                    (A)  retailers who maintain EBT point-of-sale
  24-10  equipment;
  24-11                    (B)  banks or owners of automatic teller
  24-12  machines; and
  24-13                    (C)  consumer or client advocacy organizations.
  24-14        (c)  A member of the task force serves at the will of the
  24-15  appointing agency.
  24-16        (d)  The representative of the comptroller's office serves as
  24-17  presiding officer.  The task force may elect any other necessary
  24-18  officers.
  24-19        (e)  The task force shall meet at the call of the presiding
  24-20  officer.
  24-21        (f)  The appointing agency is responsible for the expenses of
  24-22  a member's service on the task force.  A member of the task force
  24-23  receives no additional compensation for serving on the task force.
  24-24        (g)  The task force shall:
  24-25              (1)  serve as the state counterpoint to the federal EBT
  24-26  task force;
  24-27              (2)  identify benefit programs that merit addition to
   25-1  the state's EBT system;
   25-2              (3)  identify and address problems that may occur if a
   25-3  program is added;
   25-4              (4)  pursue state-federal partnerships to facilitate
   25-5  the development and expansion of the state's EBT system;
   25-6              (5)  track and distribute federal legislation and
   25-7  information from other states that relate to EBT systems; and
   25-8              (6)  ensure efficiency and planning coordination in
   25-9  relation to the state's EBT system.
  25-10        (h)  In determining which benefit programs can be added to
  25-11  the state's EBT system, the task force shall consider, at a
  25-12  minimum:
  25-13              (1)  the savings to the state;
  25-14              (2)  the ease of addition to existing infrastructure;
  25-15  and
  25-16              (3)  the number of clients served.
  25-17        SECTION 3.02.  ELECTRONIC IMAGING PILOT PROGRAM.  (a)  In
  25-18  conjunction with the comptroller, and any other appropriate agency,
  25-19  the Texas Department of Human Services by rule shall develop a
  25-20  36-month pilot program in Harris County to prevent welfare fraud by
  25-21  using a type of electronic fingerprint-imaging of applicants for
  25-22  and recipients of financial assistance under this chapter.
  25-23        (b)  In adopting rules under this section, the department
  25-24  shall ensure that any electronic imaging performed by the
  25-25  department is strictly confidential and is used only to prevent
  25-26  fraud by recipients of assistance.
  25-27        (c)  The department shall:
   26-1              (1)  model the system after the California automated
   26-2  fingerprint image reporting and match system (AFIRM); and
   26-3              (2)  use an imaging system in conjunction with the
   26-4  Department of Public Safety of the State of Texas.
   26-5        (d)  Each fiscal quarter, the department shall submit to the
   26-6  governor and the legislature a report on the status and progress of
   26-7  the pilot program.
   26-8        (e)  The department shall establish the electronic imaging
   26-9  pilot program required by this section not later than January 1,
  26-10  1996.
  26-11             ARTICLE 4.  WAIVER; EFFECTIVE DATE; EMERGENCY
  26-12        SECTION 4.01.  WAIVER.  If before implementing a provision of
  26-13  this Act a state agency determines that a waiver or authorization
  26-14  from a federal agency is necessary for implementation, the agency
  26-15  shall request the waiver or authorization and may delay
  26-16  implementing that provision until the waiver or authorization is
  26-17  granted.
  26-18        SECTION 4.02.  EFFECTIVE DATE.  Except as otherwise provided
  26-19  by this Act, this Act takes effect September 1, 1995.
  26-20        SECTION 4.03.  EMERGENCY.  The importance of this legislation
  26-21  and the crowded condition of the calendars in both houses create an
  26-22  emergency and an imperative public necessity that the
  26-23  constitutional rule requiring bills to be read on three several
  26-24  days in each house be suspended, and this rule is hereby suspended.