By Hilderbran                                         H.B. No. 1863
       74R5999 MLR/CLG-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.  (a)
   1-10  The 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        (b)  The department shall give each adult recipient a copy of
   1-17  a bill of responsibilities that defines the responsibilities of the
   1-18  state and of the recipient and encourages personal responsibility.
   1-19        SECTION 1.02.  CHILD CARE WORK EXEMPTION.  Subchapter A,
   1-20  Chapter 31, Human Resources Code, is amended by adding Section
   1-21  31.0123 to read as follows:
   1-22        Sec. 31.0123.  EXEMPTION FROM JOBS TRAINING PROGRAM.  The
   1-23  department, in accordance with federal law governing the job
   1-24  opportunities and basic skills (JOBS) training program under Part
    2-1  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682),
    2-2  shall exempt a caretaker of a dependent child younger than one year
    2-3  of age from participation in a JOBS component required by the
    2-4  department.
    2-5        SECTION 1.03.  EMPLOYMENT PROGRAMS.  (a)  Subchapter A,
    2-6  Chapter 31, Human Resources Code, is amended by adding Section
    2-7  31.0126 to read as follows:
    2-8        Sec. 31.0126.  EMPLOYMENT PROGRAMS.  (a)  In cooperation with
    2-9  the state agency charged with primary responsibility for job
   2-10  training, employment, and workforce development in this state, the
   2-11  department by rule shall develop the following programs to assist
   2-12  recipients of financial assistance and services under this chapter
   2-13  in finding and retaining employment:
   2-14              (1)  a work first program that provides a participant
   2-15  job readiness training and employment information and services that
   2-16  will motivate the participant to find and apply for a job through
   2-17  job clubs, job readiness activities, and job search activities;
   2-18              (2)  a business internship program that provides a
   2-19  participant the opportunity to obtain marketable job skills through
   2-20  an internship in a participating business;
   2-21              (3)  a Texas works program that:
   2-22                    (A)  is operated by a nonprofit group or local
   2-23  governmental entity;
   2-24                    (B)  provides to a participant motivational and
   2-25  job readiness training by placing the participant in a job for a
   2-26  period of several months;
   2-27                    (C)  ensures that the participant is visited at
    3-1  work and receives counseling and help in resolving any work-related
    3-2  or personal problems; and
    3-3                    (D)  receives funding on the basis of
    3-4  participants who are successfully hired for employment;
    3-5              (4)  a community work experience program that provides
    3-6  a participant job training and work experience through a temporary
    3-7  job in the public sector;
    3-8              (5)  a subsidized employment program that provides to a
    3-9  participant job training and work experience through a job in the
   3-10  private sector that pays the participant a subsidized salary; and
   3-11              (6)  a self-employment assistance program that provides
   3-12  to a participant entrepreneurial training, business counseling, and
   3-13  technical and financial assistance so that the participant can
   3-14  establish a business and become self-employed.
   3-15        (b)  The department shall develop the programs prescribed by
   3-16  this section in accordance with federal law as a part of the job
   3-17  opportunities and basic skills (JOBS) training program under Part
   3-18  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).
   3-19        (c)  In adopting rules governing a program prescribed by this
   3-20  section, the department shall:
   3-21              (1)  establish the criteria for determining which
   3-22  recipients who are eligible to participate in the JOBS training
   3-23  program may be required to participate in a particular program; and
   3-24              (2)  ensure that a recipient who is incapable of
   3-25  participating in a particular program is not required to
   3-26  participate in that program.
   3-27        (d)  A local workforce development board may implement in a
    4-1  workforce development area one or more programs prescribed by this
    4-2  section.
    4-3        (e)  The department shall submit a waiver application or a
    4-4  renewal waiver application that a federal agency may require before
    4-5  a local workforce development board can implement one or more of
    4-6  the programs prescribed by this section in a workforce development
    4-7  area.
    4-8        (f)  In this section, a "local workforce development board"
    4-9  means a local workforce development board created under Section
   4-10  4.01, Workforce and Economic Competitiveness Act (Article 5190.7a,
   4-11  Vernon's Texas Civil Statutes).
   4-12        (b)  Section 31.0125, Human Resources Code, is repealed.
   4-13        SECTION 1.04.  DEMONSTRATION PROJECTS; FUND.  Article 4,
   4-14  Workforce and Economic Competitiveness Act (Article 5190.7a,
   4-15  Vernon's Texas Civil Statutes), is amended by adding Sections
   4-16  4.055-4.057 to read as follows:
   4-17        Sec. 4.055.  DEMONSTRATION PROJECTS.  (a)  In this section:
   4-18              (1)  "Board" means a local workforce development board.
   4-19              (2)  "Workforce development agency" means the state
   4-20  agency charged with primary responsibility for the implementation
   4-21  and consolidation of labor, employment, and job training programs
   4-22  in this state.
   4-23        (b)  In addition to the functions performed under Section
   4-24  4.04 of this Act and the local plan required under Section 4.05 of
   4-25  this Act, each board may establish and operate localized programs
   4-26  to expand education, training, and employment in the workforce
   4-27  development area administered by the board.  The board may design
    5-1  creative programs that fit the unique characteristics and needs of
    5-2  its workforce development area.
    5-3        (c)  A board that designs a program under this section shall
    5-4  submit a written proposal for approval of the program to the
    5-5  workforce development agency.  The workforce development agency
    5-6  shall approve any program that clearly demonstrates the ability to:
    5-7              (1)  draw on and unite the resources of the local
    5-8  community; and
    5-9              (2)  determine and meet the needs of the local service
   5-10  populations, businesses, and industries.
   5-11        (d)  A board shall implement and administer a program
   5-12  approved by the workforce development agency under this section as
   5-13  a local demonstration project.  The board shall report to the
   5-14  workforce development agency on a quarterly basis regarding the
   5-15  administration of the project and the effectiveness of the project
   5-16  in serving the workforce development needs of the community.
   5-17        (e)  A board shall submit any proposed changes in the program
   5-18  to the workforce development agency in writing.  The workforce
   5-19  development agency must approve the proposed changes before the
   5-20  changes may be adopted and implemented by the board.
   5-21        Sec. 4.056.  CERTAIN PROGRAMS FOR AFDC RECIPIENTS.  (a)  In
   5-22  addition to the programs established under Section 4.055 of this
   5-23  Act, each local workforce development board shall adopt programs to
   5-24  enhance the ability of recipients of financial assistance and
   5-25  services under Chapter 31, Human Resources Code, who are eligible
   5-26  to participate in the JOBS training program to obtain and retain
   5-27  gainful employment.  On request of a board, the workforce
    6-1  development agency shall provide technical assistance to the board
    6-2  in adopting programs under this section.
    6-3        (b)  In adopting programs under this section, the board shall
    6-4  consider the programs established under Section 31.0126, Human
    6-5  Resources Code.  Within the parameters established by that
    6-6  subchapter, the board may adapt a program to serve more effectively
    6-7  the needs of the recipients described by Subsection (a) who are
    6-8  residing in the workforce development area.
    6-9        (c)  The workforce development agency must approve a program
   6-10  adopted by the board under this section, including a program
   6-11  established under Section 31.0126, Human Resources Code, before the
   6-12  board can implement the program in the workforce development area.
   6-13        (d)  In this section, "JOBS training program" means the job
   6-14  opportunities and basic skills (JOBS) training program under Part
   6-15  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).
   6-16        Sec. 4.057.  REVOLVING FUND ACCOUNT.  (a)  A special
   6-17  revolving fund account is established in the state treasury to be
   6-18  known as the local workforce development board demonstration
   6-19  project account.  The account may be used only for:
   6-20              (1)  loans for the initial implementation costs of a
   6-21  demonstration project approved under Section 4.055 of this Act; and
   6-22              (2)  small loans for new education, training, and
   6-23  employment programs created by a local workforce development board
   6-24  under a demonstration project.
   6-25        (b)  The account consists of:
   6-26              (1)  money the legislature appropriates to the account;
   6-27              (2)  donations made to the account;
    7-1              (3)  repayment of small loans made under the provisions
    7-2  of a demonstration project;
    7-3              (4)  revenue received from state and federal education,
    7-4  training, and job programs; and
    7-5              (5)  depository interest and investment income earned
    7-6  on amounts in the account.
    7-7        (c)  Money drawn from the revolving fund account for the
    7-8  operation of education, training, and job programs shall be paid
    7-9  back to the account as permanent revenues from state and federal
   7-10  education, training, and job programs become available.
   7-11        (d)  Sections 403.094 and 403.095, Government Code, do not
   7-12  apply to the account.
   7-13        SECTION 1.05.  EMPLOYMENT OPPORTUNITIES FOR PERSONS WITH
   7-14  DISABILITIES.  (a)  Chapter 121, Human Resources Code, is amended
   7-15  by adding Sections 121.0014 and 121.0015 to read as follows:
   7-16        Sec. 121.0014.  VISION STATEMENT.  (a)  The Health and Human
   7-17  Services Commission, each health and human services agency, and
   7-18  each state agency that administers a workforce development program
   7-19  shall adopt the following statement of vision:
   7-20        The State of Texas shall ensure that all Texans with
   7-21        disabilities have the opportunity and support necessary
   7-22        to work in individualized, competitive employment in
   7-23        the community and to have choices about their work and
   7-24        careers.
   7-25        (b)  In this section, "health and human services agency"
   7-26  means an agency listed by Section 19, Article 4413(502), Revised
   7-27  Statutes.
    8-1        Sec. 121.0015.  INTERAGENCY WORK GROUP.  (a)  An interagency
    8-2  work group is created to implement the action plan adopted at the
    8-3  1994 Supported Employment Summit.
    8-4        (b)  The work group is composed of a representative of the:
    8-5              (1)  Central Education Agency, appointed by the
    8-6  commissioner of education;
    8-7              (2)  Texas Commission for the Blind, appointed by the
    8-8  commissioner of that agency;
    8-9              (3)  Texas Department of Mental Health and Mental
   8-10  Retardation, appointed by the commissioner of mental health and
   8-11  mental retardation; and
   8-12              (4)  Texas Rehabilitation Commission, appointed by the
   8-13  commissioner of that agency.
   8-14        (c)  A member of the work group serves at the will of the
   8-15  appointing agency.
   8-16        (d)  The work group shall elect a presiding officer and any
   8-17  other necessary officers.
   8-18        (e)  The work group shall meet at the call of the presiding
   8-19  officer.
   8-20        (f)  The appointing agency is responsible for the expenses of
   8-21  a member's service on the work group.  A member of the work group
   8-22  receives no additional compensation for serving on the work group.
   8-23        (g)  The comptroller shall monitor the work group and the
   8-24  implementation of the action plan.
   8-25        (b)  Not later than November 15, 1996, the comptroller shall
   8-26  submit to the governor and the legislature a report describing the
   8-27  progress made toward implementing the action plan adopted at the
    9-1  1994 Supported Employment Summit.
    9-2        SECTION 1.06.  WORK INCENTIVES.  Subchapter B, Chapter 111,
    9-3  Human Resources Code, is amended by adding Section 111.0205 to read
    9-4  as follows:
    9-5        Sec. 111.0205.  WORK INCENTIVES AND SUPPLEMENTAL SECURITY
    9-6  INCOME (SSI).  (a)  The commission shall employ a person at the
    9-7  commission's central office to:
    9-8              (1)  train counselors to understand and use work
    9-9  incentives; and
   9-10              (2)  review cases to ensure that commission clients are
   9-11  informed of the availability of and assisted in obtaining work
   9-12  incentives and Supplemental Security Income (SSI) (42 U.S.C.
   9-13  Section 1381 et seq.).
   9-14        (b)  The commission shall ensure that each contract to
   9-15  provide services to clients of a community center include a
   9-16  provision requiring the center to:
   9-17              (1)  train counselors about federal social security
   9-18  incentives to fund supported employment;
   9-19              (2)  determine each client's eligibility for work
   9-20  incentives and SSI; and
   9-21              (3)  provide clients and their families with related
   9-22  information.
   9-23        SECTION 1.07.  PURCHASES OF PRODUCTS FROM DISABLED PERSONS.
   9-24  Section 122.004(d), Human Resources Code, is amended to read as
   9-25  follows:
   9-26        (d)  The committee shall contract with an entity serving
   9-27  blind or severely disabled persons through a competitive bidding
   10-1  process to provide to that entity any necessary services, including
   10-2  assisting the entity in submitting applications for the selection
   10-3  of suitable products or services and distributing orders <make
   10-4  rules regarding designation of a central nonprofit agency to
   10-5  facilitate the distribution of orders among agencies serving blind
   10-6  or other severely disabled persons and regarding other matters
   10-7  related to the state's use of the products and services of blind
   10-8  and severely disabled persons>.  The committee shall establish
   10-9  commission rates that the entity must pay to the committee for the
  10-10  provision of services under this subsection.  The commission rate
  10-11  shall be included in the selling price of a commodity or in the
  10-12  contract price of a service.  Commissions collected under this
  10-13  section may be appropriated only to the committee to administer
  10-14  this chapter and to provide additional supported employment
  10-15  opportunities.
  10-16        SECTION 1.08.  COMPETITIVE EMPLOYMENT.  (a)  Section
  10-17  21.510(e), Education Code, is amended to read as follows:
  10-18        (e)  Each school district shall develop and annually review
  10-19  an individual transition plan (ITP) for each student enrolled in a
  10-20  special education program who is at least 16 years of age.  The ITP
  10-21  shall include a goal of competitive employment.  The ITP shall be
  10-22  developed in a separate document from the individualized education
  10-23  program (IEP) and shall not be considered a part of the IEP.  The
  10-24  school district shall coordinate development of the ITP with any
  10-25  participating agency as provided in the memorandum of understanding
  10-26  in order to provide continuity and coordination of services among
  10-27  the various agencies and between the ITP and IEP.  The district
   11-1  shall request the participation in the development of the ITP of
   11-2  any participating agency recommended by school personnel or
   11-3  requested by the student or the student's parent.  The district
   11-4  shall invite the student and the student's parents or guardians to
   11-5  participate in the development of the ITP.  Only those components
   11-6  of the ITP which are the responsibility of the district shall be
   11-7  incorporated into the student's IEP.  Only the failure to implement
   11-8  those components of a student's ITP which are included in the IEP
   11-9  and are the responsibility of the school district shall be subject
  11-10  to the due process procedures of the Education of the Handicapped
  11-11  Act, Public Law 94-142 (20 U.S.C.  Section 1400 et seq.) or to
  11-12  Central Education Agency complaint procedures.  The failure of the
  11-13  district to develop and annually review an ITP for a student shall
  11-14  be subject only to the Central Education Agency complaint
  11-15  procedures and not to the due process procedures of the Education
  11-16  of the Handicapped Act, Public Law 94-142 (20 U.S.C. Section 1400
  11-17  et seq.).  A monitoring visit under Section 21.509 of this code
  11-18  shall include a review of the transition planning requirements
  11-19  under this section.  A school district is not liable for the
  11-20  failure of another agency to implement those components of the ITP
  11-21  that are designated as the responsibility of that agency under the
  11-22  memorandum of understanding.
  11-23        (b)  Section 21.510(e), Education Code, as amended by this
  11-24  section, applies to an individual transition plan developed for
  11-25  each school year beginning with the 1995-1996 school year.
  11-26        (c)  The Central Education Agency shall study the possible
  11-27  effects of amending Section 21.510, Education Code, to require the
   12-1  development of an individual transition plan for each child who is
   12-2  at least 14 years of age.  Not later than November 15, 1996, the
   12-3  agency shall submit to the governor and the legislature a report on
   12-4  the effects of changing the age requirement.
   12-5        SECTION 1.09.  TEEN-JOBS PILOT PROGRAM.  (a)  Using funds
   12-6  available from the job opportunities and basic skills training
   12-7  program (JOBS) (Subchapter IV, Social Security Act (42 U.S.C.
   12-8  Section 682)), the Central Education Agency, in conjunction with
   12-9  the Texas Department of Human Services and the comptroller, shall
  12-10  allow not fewer than four school districts or areas within school
  12-11  districts to establish pilot programs designed to encourage teenage
  12-12  parents to stay in school and advance toward independence.
  12-13        (b)  Services in the program may include the parenting
  12-14  program services provided under Section 21.114, Education Code,
  12-15  child care, transportation, tutorial services, guidance and
  12-16  counseling services, career counseling, mentor programs, on-the-job
  12-17  training based on the unique needs of participants and the local
  12-18  labor market, and any other allowable relevant services.
  12-19        (c)  The agency shall report to the governor and the 75th
  12-20  Legislature regarding the effectiveness of this program.
  12-21        (d)  This section expires January 1, 1999.
  12-22        SECTION 1.10.  PILOT PROGRAM TO ASSIST AFDC CLIENTS IN
  12-23  ACHIEVING SELF-SUFFICIENCY.  (a)  The Texas Department of Human
  12-24  Services shall establish a pilot program to extend the period of
  12-25  supported employment for families who receive financial assistance
  12-26  under Chapter 31, Human Resources Code, to help those families
  12-27  become self-sufficient.  In establishing this program the
   13-1  department may:
   13-2              (1)  use a form of fill-the-gap budgeting; or
   13-3              (2)  extend transitional benefits to 24 months.
   13-4        (b)  If the department chooses to extend transitional
   13-5  benefits to 24 months, the department shall determine whether
   13-6  purchasing medical coverage for participants through the state's
   13-7  Uniform Group Insurance Program is more cost-effective than
   13-8  Medicaid coverage.
   13-9        (c)  The department shall report to the governor and the 75th
  13-10  and 76th Legislatures regarding the program's success in assisting
  13-11  families in becoming more self-sufficient.
  13-12        (d)  In this section, "fill-the-gap budgeting" means a system
  13-13  of budgeting in which benefits are gradually lowered using a
  13-14  percentage of the difference between the standard of need and the
  13-15  countable income to calculate the grant benefit.
  13-16        (e)  This section expires September 1, 1999.
  13-17        SECTION 1.11.  APPLICATION DATE.  This article applies only
  13-18  to a person who receives financial assistance under Chapter 31,
  13-19  Human Resources Code, on or after September 1, 1995, regardless of
  13-20  the date on which eligibility for that assistance was determined.
  13-21          ARTICLE 2.  REDUCING DEPENDENCE ON STATE ASSISTANCE
  13-22        SECTION 2.01.  ADULT LEARNING LABS FOR AFDC CLIENTS.
  13-23  Subchapter A, Chapter 11, Education Code, is amended by adding
  13-24  Section 11.2093 to read as follows:
  13-25        Sec. 11.2093.  EDUCATE TEXAS PROGRAM.  (a)  The Educate Texas
  13-26  Program is created to provide adult education services to clients
  13-27  of Aid to Families with Dependent Children who are referred to the
   14-1  program under Section 31.0124, Human Resources Code.
   14-2        (b)  The Central Education Agency, the Texas Higher Education
   14-3  Coordinating Board, and the state agency charged with primary
   14-4  responsibility for job training, employment, and workforce
   14-5  development shall jointly develop a system of adult education
   14-6  learning laboratories in public schools and community colleges
   14-7  under this program to provide the following emergency services, as
   14-8  needed, to a person eligible to receive Aid to Families with
   14-9  Dependent Children:
  14-10              (1)  development of literacy in English and proficiency
  14-11  in oral and written language skills;
  14-12              (2)  preparation for a high school equivalency
  14-13  examination;
  14-14              (3)  training in parenting skills;
  14-15              (4)  training in principles of family dynamics and
  14-16  family responsibility;
  14-17              (5)  family counseling and case management;
  14-18              (6)  employment readiness training in such areas as
  14-19  work ethics and interview skills; and
  14-20              (7)  on-site child-care services as necessary to allow
  14-21  a person to participate in the training and education services
  14-22  under this subsection.
  14-23        SECTION 2.02.  ELIGIBILITY FOR ADULT LEARNING LABS.
  14-24  Subchapter A, Chapter 31, Human Resources Code, is amended by
  14-25  adding Section 31.0124 to read as follows:
  14-26        Sec. 31.0124.  REFERRAL TO EDUCATIONAL PROGRAMS.  The
  14-27  department shall determine whether a person who registers to
   15-1  participate in the job opportunities and basic skills training
   15-2  program needs and is eligible for adult education services provided
   15-3  under Section 11.2093, Education Code.  If the person is eligible
   15-4  for the adult education services, the department shall determine
   15-5  the person's needs and goals and refer the person to the
   15-6  appropriate adult education service provided under Section 11.2093,
   15-7  Education Code.
   15-8        SECTION 2.03.  ADULT LITERACY AND LEARNING PROGRAMS.  Chapter
   15-9  88, Education Code, is amended by adding Subchapter G to read as
  15-10  follows:
  15-11                    SUBCHAPTER G.  TEXAS CENTER FOR
  15-12                      ADULT LITERACY AND LEARNING
  15-13        Sec. 88.541.  DUTIES OF TEXAS CENTER FOR ADULT LITERACY AND
  15-14  LEARNING.  (a) The Texas Center for Adult Literacy and Learning at
  15-15  Texas A&M University shall evaluate instructional videotapes or
  15-16  similar recorded materials generally available for use in providing
  15-17  adult literacy instruction and from time to time shall publish a
  15-18  guide describing and evaluating those videotapes and materials. The
  15-19  center shall encourage cable companies and other appropriate
  15-20  entities to use the guide in selecting materials to use in
  15-21  broadcasting and may take other action to promote the broadcast or
  15-22  dissemination of workbooks and other materials the center considers
  15-23  effective in teaching adult literacy.
  15-24        (b)  The center shall develop voluntary standards for the
  15-25  curriculum and workbooks and other materials used in adult literacy
  15-26  programs, including programs for teaching English as a second
  15-27  language.  To develop the standards, the center shall organize an
   16-1  advisory group and shall encourage the participation of major
   16-2  providers of adult literacy programs in this state, including
   16-3  private nonprofit organizations, institutions of education, and
   16-4  correctional facilities.  The Texas Department of Criminal Justice
   16-5  shall designate an employee of the department to participate in the
   16-6  initial development of the standards.
   16-7        (c)  In connection with the standards developed under
   16-8  Subsection (b), the center shall develop workbooks and other
   16-9  materials to be used by teachers and students in adult literacy
  16-10  programs to track the progress of the student and to allow the
  16-11  student to understand and maintain a record of the student's
  16-12  progress and proficiency.
  16-13        (d)  The center shall develop and update as necessary
  16-14  informational brochures, promotional posters, workbooks, or similar
  16-15  materials suitable for distribution to state employees or the
  16-16  general public describing the need for adult literacy and education
  16-17  services in this state and encouraging qualified persons to support
  16-18  or volunteer to assist programs that provide those services.  As
  16-19  the center determines appropriate, the center may provide samples
  16-20  of those workbooks and other materials to the governing boards or
  16-21  chief executive officers of state agencies, including institutions
  16-22  of higher education, and to other employers and institutions in
  16-23  this state and shall encourage those entities to distribute or make
  16-24  available the workbooks and other materials to their employees.
  16-25        SECTION 2.04.  LITERACY:  ENGLISH AS A SECOND LANGUAGE.
  16-26  Subchapter B, Chapter 13, Education Code, is amended by adding
  16-27  Section 13.044 to read as follows:
   17-1        Sec. 13.044.  ADULT LITERACY AND ENGLISH AS A SECOND LANGUAGE
   17-2  CURRICULUM.  (a) Each general academic teaching institution, as
   17-3  defined by Section 61.003, that conducts an approved teacher
   17-4  education program shall include in the curriculum of at least one
   17-5  course in the program a unit that introduces the students to the
   17-6  fundamentals of teaching adult literacy and English as a second
   17-7  language courses.
   17-8        (b)  If the institution operates a center for professional
   17-9  development and technology in connection with its teacher education
  17-10  program, the institution through the center may provide interested
  17-11  students in the education program with opportunities for
  17-12  internships or other field-based training and experience in
  17-13  teaching adult literacy or English as a second language.
  17-14        SECTION 2.05.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.
  17-15  (a)  Article 4413(502), Revised Statutes, is amended by adding
  17-16  Section 22 to read as follows:
  17-17        Sec. 22.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.  (a)
  17-18  The commission shall contract on a no-risk contingency basis with a
  17-19  consulting firm to assist recipients of financial assistance under
  17-20  Chapter 31, Human Resources Code, who are eligible for assistance
  17-21  under federal programs to apply for benefits under those federal
  17-22  programs.  The consulting firm must be:
  17-23              (1)  qualified to work with the Supplemental Security
  17-24  Income (SSI) (42 U.S.C. Section 1381 et seq.) and the Social
  17-25  Security Disability Insurance (SSDI) (42 U.S.C. Section 401 et
  17-26  seq.) programs; and
  17-27              (2)  skilled in interpreting federal:
   18-1                    (A)  eligibility guidelines;
   18-2                    (B)  determination processes;
   18-3                    (C)  work programs; and
   18-4                    (D)  definitions of disabilities.
   18-5        (b)  The contract shall include:
   18-6              (1)  a provision that bases the compensation the
   18-7  contractor receives on the number of cases converted from state
   18-8  financial assistance to SSI or SSDI;
   18-9              (2)  appropriate performance requirements, including:
  18-10                    (A)  the minimum number of applications for
  18-11  federal assistance that must be filed;
  18-12                    (B)  the minimum number of reconsiderations
  18-13  requested;
  18-14                    (C)  the percentage of administrative law
  18-15  hearings that must be filed;
  18-16                    (D)  the percentage of grants approved by the
  18-17  federal programs; and
  18-18                    (E)  time guidelines; and
  18-19              (3)  an arrangement for training state employees to
  18-20  transfer eligible state financial assistance recipients to the
  18-21  federal programs.
  18-22        (c)  The state shall deduct from the lump-sum payment a
  18-23  recipient receives from the federal government when that person is
  18-24  accepted in the SSI or SSDI program that portion of the
  18-25  consultant's contingency fee that is assignable to the recipient
  18-26  and any state financial assistance paid to that person during the
  18-27  period between the person's application for the federal program and
   19-1  the person's subsequent acceptance into it.
   19-2        (d)  The commission shall organize a planning group involving
   19-3  the Texas Department of Human Services, the Central Education
   19-4  Agency, and the Texas Rehabilitation Commission to:
   19-5              (1)  improve workload coordination between those
   19-6  agencies as necessary to administer this section; and
   19-7              (2)  assist the consultant required by this section by:
   19-8                    (A)  providing the consultant with regulations,
   19-9  procedures, client records, and other necessary information; and
  19-10                    (B)  helping to train state employees to
  19-11  correctly screen applicants under this section.
  19-12        (b)  Not later than January 15, 1997, the planning group
  19-13  required by Section 22, Article 4413(502), Revised Statutes, as
  19-14  added by this section, shall submit to the legislature and governor
  19-15  a report on the progress the state has made in transferring
  19-16  recipients of state financial assistance to federal programs.
  19-17        SECTION 2.06.  FEDERAL TAX CREDIT.  Subchapter B, Chapter
  19-18  403, Government Code, is amended by adding Section 403.024 to read
  19-19  as follows:
  19-20        Sec. 403.024.  FEDERAL EARNED INCOME TAX CREDIT.  (a)  The
  19-21  comptroller's office is the lead state agency in promoting
  19-22  awareness of the federal earned income tax credit program for
  19-23  working families.
  19-24        (b)  The comptroller shall recruit other state agencies and
  19-25  the governor's office to participate in a coordinated campaign to
  19-26  increase awareness of the federal tax program.
  19-27        SECTION 2.07.  PILOT PROGRAM:  TIME-LIMITED BENEFITS.  (a)
   20-1  The Texas Department of Human Services shall establish a
   20-2  time-limited benefits pilot program that limits the amount of time
   20-3  a person can receive financial assistance under Chapter 31, Human
   20-4  Resources Code.
   20-5        (b)  In implementing the time-limited benefits pilot program,
   20-6  the department:
   20-7              (1)  shall require a person to participate in the
   20-8  program if the person:
   20-9                    (A)  is eligible to participate in the job
  20-10  opportunities and basic skills (JOBS) training program under Part
  20-11  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682); and
  20-12                    (B)  is not the caretaker of a dependent child
  20-13  who is younger than one year of age;
  20-14              (2)  may not provide financial assistance under Chapter
  20-15  31, Human Resources Code, to a participant in the pilot program or
  20-16  to anyone for whom the participant receives financial assistance if
  20-17  the participant has received the financial assistance for a
  20-18  cumulative total of two years;
  20-19              (3)  may not consider financial assistance provided to
  20-20  a participant before January 1, 1995, in determining the
  20-21  participant's eligibility for financial assistance under
  20-22  Subdivision (2) of this subsection;
  20-23              (4)  shall provide that a participant in the pilot
  20-24  program may reapply with the department for financial assistance on
  20-25  or after the third anniversary of the date on which the participant
  20-26  is totally disqualified from receiving financial assistance because
  20-27  of the application of Subdivision (2) of this subsection;
   21-1              (5)  may extend the amount of time a participant in the
   21-2  pilot program is entitled to receive financial assistance if after
   21-3  an investigation the department determines that limiting the amount
   21-4  of time the participant can receive financial assistance will
   21-5  impose an undue hardship on the participant or the participant's
   21-6  family; and
   21-7              (6)  shall establish the criteria for determining what
   21-8  constitutes undue hardship under Subdivision (5) of this
   21-9  subsection.
  21-10        (c)  The department shall:
  21-11              (1)  adopt rules and set a timetable to implement and
  21-12  complete the pilot program; and
  21-13              (2)  select at least one county in which to establish
  21-14  the pilot program that has:
  21-15                    (A)  a population of 250,000 or more; and
  21-16                    (B)  low unemployment and an effective JOBS
  21-17  program placement-rate.
  21-18        (d)  The department shall establish the pilot program
  21-19  required by this section not later than January 1, 1996.
  21-20        (e)  The Texas Department of Human Services shall submit to
  21-21  the governor and the 75th, 76th, and 77th Legislatures a report
  21-22  concerning the effectiveness of the pilot program.  Each report
  21-23  must include an analysis of the characteristics and demographics of
  21-24  recipients and any recommendation for expansion of the program.
  21-25        (f)  This section expires September 1, 2001.
  21-26        SECTION 2.08.  PILOT PROGRAM:  EMERGENCY ASSISTANCE FOR
  21-27  FAMILIES IN A CRISIS.  (a)  The Texas Department of Human Services
   22-1  shall seek federal funding that would allow the department to
   22-2  establish an emergency assistance pilot program to support families
   22-3  in a crisis.
   22-4        (b)  The department shall establish the pilot program in a
   22-5  high-employment area of the state or an area that uses the
   22-6  electronic benefits transfer system.
   22-7        (c)  The department by rule shall develop guidelines to
   22-8  administer the program, including:
   22-9              (1)  eligibility guidelines;
  22-10              (2)  guidelines specifying whether the assistance is a
  22-11  one-time cash payment to a family; and
  22-12              (3)  guidelines specifying whether an applicant who
  22-13  receives the emergency assistance must agree to forgo applying for
  22-14  financial assistance under Chapter 31, Human Resources Code, for
  22-15  one year, or another appropriate limitation determined by the
  22-16  department.
  22-17        (d)  The department shall report to the governor and the 75th
  22-18  and 76th Legislatures regarding the program's success in helping
  22-19  families in a crisis avoid becoming AFDC clients.
  22-20        (e)  This section expires September 1, 1999.
  22-21        SECTION 2.09.  PILOT PROGRAM:  SAVINGS ACCOUNTS FOR AFDC
  22-22  RECIPIENTS.  (a)  In conjunction with the state treasurer, the
  22-23  Texas Department of Human Services shall establish a pilot program
  22-24  to create individual development accounts for individuals who are
  22-25  receiving financial assistance under Chapter 31, Human Resources
  22-26  Code, to encourage recipients to achieve self-sufficiency.
  22-27        (b)  The department by rule may provide for:
   23-1              (1)  the number of financial assistance recipients who
   23-2  may participate in the program; and
   23-3              (2)  the maximum amount that may be saved by a
   23-4  participant.
   23-5        (c)  The department shall encourage private sector employers
   23-6  to provide matching funds for employed recipients of financial
   23-7  assistance who are participating in this program.
   23-8        (d)  The department shall report to the governor and the 75th
   23-9  and 76th Legislatures regarding the success of the program.
  23-10        (e)  This section expires September 1, 1999.
  23-11        SECTION 2.10.  WORK HISTORY AND 100-HOUR RULE WAIVER.  Not
  23-12  later than December 1, 1995, the Texas Department of Human Services
  23-13  shall reapply for a federal waiver to eliminate the work history
  23-14  and 100-hour rules for two-parent families and to enable the
  23-15  department to fully implement Section 31.014, Human Resources Code.
  23-16        SECTION 2.11.  APPLICATION DATE.  This article applies only
  23-17  to a person who receives financial assistance under Chapter 31,
  23-18  Human Resources Code, on or after September 1, 1995, regardless of
  23-19  the date on which eligibility for that assistance was determined.
  23-20                 ARTICLE 3.  REDUCING FRAUD AND ERROR
  23-21        SECTION 3.01.  PUBLIC ASSISTANCE FRAUD OVERSIGHT TASK FORCE.
  23-22  Chapter 21, Human Resources Code, is amended by adding Section
  23-23  21.0145 to read as follows:
  23-24        Sec. 21.0145.  PUBLIC ASSISTANCE FRAUD OVERSIGHT TASK FORCE.
  23-25  (a)  The Public Assistance Fraud Oversight Task Force is created to
  23-26  advise and assist the department and the department's office of the
  23-27  inspector general in improving the efficiency of fraud
   24-1  investigations and collections.
   24-2        (b)  The task force is composed of a representative of the:
   24-3              (1)  attorney general's office, appointed by the
   24-4  attorney general;
   24-5              (2)  comptroller's office, appointed by the
   24-6  comptroller;
   24-7              (3)  Department of Public Safety, appointed by the
   24-8  public safety director;
   24-9              (4)  state auditor's office, appointed by the state
  24-10  auditor; and
  24-11              (5)  Texas Department of Human Services, appointed by
  24-12  the commissioner of human services.
  24-13        (c)  The comptroller or the comptroller's designee serves as
  24-14  the presiding officer of the task force.  The task force may elect
  24-15  any other necessary officers.
  24-16        (d)  The task force shall meet at least once each fiscal
  24-17  quarter at the call of the presiding officer.
  24-18        (e)  The appointing agency is responsible for the expenses of
  24-19  a member's service on the task force.  Members of the task force
  24-20  receive no additional compensation for serving on the task force.
  24-21        (f)  At least once each fiscal quarter, the department's
  24-22  office of the inspector general shall provide to the task force:
  24-23              (1)  information detailing:
  24-24                    (A)  the number of fraud referrals made to the
  24-25  office and the origin of each referral;
  24-26                    (B)  the time spent investigating each case;
  24-27                    (C)  the number of cases investigated each month,
   25-1  by program and region;
   25-2                    (D)  the dollar value of each fraud case that
   25-3  results in a criminal conviction; and
   25-4                    (E)  the number of cases the office rejects and
   25-5  the reason for rejection, by region; and
   25-6              (2)  any additional information the task force
   25-7  requires.
   25-8        SECTION 3.02.  FRAUD PREVENTION.  (a)  Chapter 22, Human
   25-9  Resources Code, is amended by adding Section 22.027 to read as
  25-10  follows:
  25-11        Sec. 22.027.  FRAUD PREVENTION.  (a)  The department's office
  25-12  of the inspector general shall compile and disseminate accurate
  25-13  information and statistics relating to:
  25-14              (1)  fraud prevention; and
  25-15              (2)  post-fraud referrals received and accepted or
  25-16  rejected from the department's case management system.
  25-17        (b)  The department shall:
  25-18              (1)  aggressively publicize successful fraud
  25-19  prosecutions; and
  25-20              (2)  establish and promote a toll-free hotline for
  25-21  reporting suspected fraud in programs administered by the
  25-22  department.
  25-23        (c)  The department shall establish an interstate information
  25-24  sharing agreement with its agency counterparts in Arkansas,
  25-25  Louisiana, New Mexico, and Oklahoma to prevent a person from
  25-26  simultaneously receiving public assistance from more than one
  25-27  state.  The agreement shall provide for sharing information
   26-1  necessary to identify an applicant or recipient, including that
   26-2  person's name, social security number, address, and age.
   26-3        (d)  The department shall:
   26-4              (1)  verify automobile information that is used as
   26-5  criteria for eligibility; and
   26-6              (2)  establish a computerized matching system with the
   26-7  Texas Department of Criminal Justice to prevent an incarcerated
   26-8  individual from illegally receiving public assistance benefits
   26-9  administered by the department.
  26-10        (b)  The Texas Department of Human Services shall:
  26-11              (1)  evaluate the costs and benefits of the five-day
  26-12  time limit the department prescribes for the investigation of fraud
  26-13  prevention referrals; and
  26-14              (2)  consider lowering the criteria for acceptance by
  26-15  the department's office of the inspector general of post-fraud
  26-16  referrals.
  26-17        (c)  If the department lowers the criteria for accepting
  26-18  post-fraud referrals, the department shall require each department
  26-19  office to apply that criteria.
  26-20        SECTION 3.03.  PREVENTING FRAUD THROUGH VEHICLE REGISTRATION.
  26-21  (a)  Section 3(a), Chapter 88, General Laws, Acts of the 41st
  26-22  Legislature, 2nd Called Session, 1929 (Article 6675a-3, Vernon's
  26-23  Texas Civil Statutes), is amended to read as follows:
  26-24        (a)  Application for the registration of a vehicle required
  26-25  to be registered hereunder shall be made on a form furnished by the
  26-26  Department.  Each such application shall be signed by the owner of
  26-27  the vehicle, and shall give his name and address in full, and shall
   27-1  contain a brief description of the vehicle to be registered.  In
   27-2  addition, if the owner is an individual, the owner must give his
   27-3  social security number.  The description, in case of a new motor
   27-4  vehicle, shall include:  the trade name of the vehicle; the year
   27-5  model; the style, type of body and the weight, if a passenger car,
   27-6  or the net carrying capacity and gross weight if a commercial motor
   27-7  vehicle; the motor number; the date of sale by manufacturer or
   27-8  dealer to the applicant.  The application shall contain such other
   27-9  information as may be required by the Department.
  27-10        (b)  This section applies only to a vehicle registration made
  27-11  on or after September 1, 1995.  A vehicle registration that is made
  27-12  before that date is governed by the law in existence when the
  27-13  registration was made, and that law is continued in effect for that
  27-14  purpose.
  27-15        SECTION 3.04.  PREVENTING FRAUD THROUGH VEHICLE REGISTRATION
  27-16  DATABASE.  Section 17A, Chapter 88, General Laws, Acts of the 41st
  27-17  Legislature, 2nd Called Session, 1929 (Article 6675a-17A, Vernon's
  27-18  Texas Civil Statutes), is amended by amending Subsection (b) and
  27-19  adding Subsection (c) to read as follows:
  27-20        (b)  This section does not apply to the release of
  27-21  information to:
  27-22              (1)  a peace officer, as that term is defined in
  27-23  Article 2.12, Code of Criminal Procedure, if the officer is acting
  27-24  in an official capacity; or
  27-25              (2)  an official of the state, a city, town, county,
  27-26  special district, or other political subdivision of the state if
  27-27  the official is requesting the information for tax purposes or for
   28-1  the purpose of determining eligibility for a state public
   28-2  assistance program.
   28-3        (c)  The Texas Department of Transportation shall provide a
   28-4  dedicated line to its vehicle registration record database for use
   28-5  by other state agencies to determine eligibility for a state public
   28-6  assistance program.  Access to records and transmission of
   28-7  information under this subsection does not affect whether the
   28-8  information is subject to disclosure under Chapter 552, Government
   28-9  Code.
  28-10        SECTION 3.05.  TASK FORCE:  ELECTRONIC BENEFITS TRANSFERS.
  28-11  Article 4413(502), Revised Statutes, is amended by adding Section
  28-12  10B to read as follows:
  28-13        Sec. 10B.  INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS
  28-14  TRANSFERS.  (a)  An interagency task force is created to advise and
  28-15  assist the commission in adding new benefit programs to the
  28-16  statewide electronic benefits transfer (EBT) system.
  28-17        (b)  The task force is composed of:
  28-18              (1)  a representative of:
  28-19                    (A)  the attorney general's office, appointed by
  28-20  the attorney general;
  28-21                    (B)  the comptroller's office, appointed by the
  28-22  comptroller;
  28-23                    (C)  the commission, appointed by the
  28-24  commissioner;
  28-25                    (D)  the Texas Department of Health, appointed by
  28-26  the commissioner of public health;
  28-27                    (E)  the Texas Department of Human Services,
   29-1  appointed by the commissioner of human services;
   29-2                    (F)  the Texas Employment Commission, appointed
   29-3  by the chairman of that agency; and
   29-4                    (G)  the Texas Rehabilitation Commission,
   29-5  appointed by the commissioner of that agency; and
   29-6              (2)  two representatives of each of the following
   29-7  groups, appointed by the comptroller:
   29-8                    (A)  retailers who maintain EBT point-of-sale
   29-9  equipment;
  29-10                    (B)  banks or owners of automatic teller
  29-11  machines; and
  29-12                    (C)  consumer or client advocacy organizations.
  29-13        (c)  A member of the task force serves at the will of the
  29-14  appointing agency.
  29-15        (d)  The representative of the comptroller's office serves as
  29-16  presiding officer.  The task force may elect any other necessary
  29-17  officers.
  29-18        (e)  The task force shall meet at the call of the presiding
  29-19  officer.
  29-20        (f)  The appointing agency is responsible for the expenses of
  29-21  a member's service on the task force.  A member of the task force
  29-22  receives no additional compensation for serving on the task force.
  29-23        (g)  The task force shall:
  29-24              (1)  serve as the state counterpoint to the federal EBT
  29-25  task force;
  29-26              (2)  identify benefit programs that merit addition to
  29-27  the state's EBT system;
   30-1              (3)  identify and address problems that may occur if a
   30-2  program is added;
   30-3              (4)  pursue state-federal partnerships to facilitate
   30-4  the development and expansion of the state's EBT system;
   30-5              (5)  track and distribute federal legislation and
   30-6  information from other states that relate to EBT systems;
   30-7              (6)  ensure efficiency and planning coordination in
   30-8  relation to the state's EBT system;
   30-9              (7)  develop a plan for the use of photograph
  30-10  identification on all EBT cards beginning with replacement cards
  30-11  for cards currently used in the program; and
  30-12              (8)  review current and potential fraud problems with
  30-13  EBT and propose methods to prevent or deter fraud.
  30-14        (h)  In determining which benefit programs can be added to
  30-15  the state's EBT system, the task force shall consider, at a
  30-16  minimum:
  30-17              (1)  the savings to the state;
  30-18              (2)  the ease of addition to existing infrastructure;
  30-19  and
  30-20              (3)  the number of clients served.
  30-21        SECTION 3.06.  ERROR-RATE REDUCTION.  (a)  Chapter 22, Human
  30-22  Resources Code, is amended by adding Sections 22.025 and 22.026 to
  30-23  read as follows:
  30-24        Sec. 22.025.  ERROR-RATE REDUCTION.  (a)  The department
  30-25  shall:
  30-26              (1)  set progressive goals for improving the
  30-27  department's error rates in the aid to families with dependent
   31-1  children and food stamp programs; and
   31-2              (2)  develop a specific schedule to meet those goals.
   31-3        (b)  Each fiscal quarter, the department shall prepare a
   31-4  report detailing the progress the department has made in reaching
   31-5  its goals.  The report must include an analysis by region of the
   31-6  department's goals and performance relating to error-rate
   31-7  reduction.  The department shall send a copy of the report to the
   31-8  governor's office, the legislative budget office, and any
   31-9  appropriate interagency task force having oversight responsibility
  31-10  over welfare fraud.
  31-11        (c)  As appropriate, the department shall include in its
  31-12  employee evaluation process a rating system that emphasizes
  31-13  error-rate reduction and workload.
  31-14        (d)  The department shall take appropriate disciplinary
  31-15  action, including dismissal, against management and other staff if
  31-16  a region has a higher than average error rate and that rate is not
  31-17  reduced in a reasonable period.
  31-18        Sec. 22.026.  REDUCTION OF CLIENT FRAUD.  The department
  31-19  shall:
  31-20              (1)  ensure that errors attributed to client fraud are
  31-21  appropriate; and
  31-22              (2)  take immediate and appropriate action to limit any
  31-23  client fraud that occurs.
  31-24        (b)  Not later than November 1, 1995, the Texas Department of
  31-25  Human Services shall develop a concentrated and effective plan for
  31-26  the city of Houston region to reduce the department's error rates
  31-27  in the aid to families with dependent children and food stamp
   32-1  programs.
   32-2        (c)  The Texas Department of Human Services shall make the
   32-3  first progress report required by Section 22.025, Human Resources
   32-4  Code, as added by this article, not later than September 1, 1995.
   32-5        SECTION 3.07.  MODIFICATION OF SCREENING AND SERVICE DELIVERY
   32-6  REQUIREMENTS.  Section 33.002, Human Resources Code, is amended by
   32-7  adding Subsection (g) to read as follows:
   32-8        (g)  The department may, within federal limits, modify the
   32-9  one-day screening and service delivery requirements prescribed by
  32-10  Subsection (e) if the department determines that the modification
  32-11  is necessary to achieve a state error rate that is equal to or
  32-12  below the national average error rate.
  32-13        SECTION 3.08.  ELECTRONIC IMAGING PILOT PROGRAM.  (a)  In
  32-14  conjunction with the comptroller, and any other appropriate agency,
  32-15  the Texas Department of Human Services by rule shall develop a
  32-16  36-month pilot program in Harris County to prevent welfare fraud by
  32-17  using a type of electronic fingerprint-imaging of applicants for
  32-18  and recipients of financial assistance under this chapter.
  32-19        (b)  In adopting rules under this section, the department
  32-20  shall ensure that any electronic imaging performed by the
  32-21  department is strictly confidential and is used only to prevent
  32-22  fraud by recipients of assistance.
  32-23        (c)  The department shall use an imaging system in
  32-24  conjunction with the Department of Public Safety of the State of
  32-25  Texas.
  32-26        (d)  Each fiscal quarter, the department shall submit to the
  32-27  governor and the legislature a report on the status and progress of
   33-1  the pilot program.
   33-2        (e)  The department shall establish the electronic imaging
   33-3  pilot program required by this section not later than January 1,
   33-4  1996.
   33-5                ARTICLE 4.  INCREASING FEDERAL FUNDING
   33-6        SECTION 4.01.  FEDERAL FUNDING:  MENTAL HEALTH SERVICES.
   33-7  Subchapter B, Chapter 533, Health and Safety Code, is amended by
   33-8  adding Section 533.046 to read as follows:
   33-9        Sec. 533.046.  FEDERAL FUNDING FOR MENTAL HEALTH SERVICES FOR
  33-10  CHILDREN AND FAMILIES.  (a)  The department shall enter into an
  33-11  interagency agreement with the Texas Department of Human Services
  33-12  to:
  33-13              (1)  amend the eligibility requirements of the state's
  33-14  emergency assistance plan under Title IV-A, Social Security Act (42
  33-15  U.S.C. Section 601 et seq.), to include mental health emergencies;
  33-16  and
  33-17              (2)  prescribe the procedures the agencies will use to
  33-18  delegate to the department and to local mental health and mental
  33-19  retardation authorities the administration of mental health
  33-20  emergency assistance.
  33-21        (b)  The interagency agreement must provide that:
  33-22              (1)  the department certify to the Texas Department of
  33-23  Human Services the nonfederal expenditures for which the state will
  33-24  claim federal matching funds; and
  33-25              (2)  the Texas Department of Human Services retain
  33-26  responsibility for making final eligibility decisions.
  33-27        (c)  The department shall allocate to local mental health and
   34-1  mental retardation authorities 66 percent of the federal funds
   34-2  received under this section.
   34-3        SECTION 4.02.  FEDERAL FUNDING:  CHEMICAL DEPENDENCY
   34-4  SERVICES.  (a)  Article 4413(502), Revised Statutes, is amended by
   34-5  adding Section 10A to read as follows:
   34-6        Sec. 10A.  FEDERAL FUNDING FOR CHEMICAL DEPENDENCY SERVICES.
   34-7  The commission shall coordinate with the Texas Commission on
   34-8  Alcohol and Drug Abuse and the Texas Department of Human Services
   34-9  to amend the eligibility requirements of the state's emergency
  34-10  assistance plan under Title IV-A, federal Social Security Act (42
  34-11  U.S.C. Section 601 et seq.), to include either a child or a
  34-12  significant adult in a child's family who needs chemical dependency
  34-13  treatment.
  34-14        (b)  The Texas Department on Alcohol and Drug Abuse shall
  34-15  continue to study the feasibility of amending the state's Medicaid
  34-16  plan to include chemical dependency treatment as an allowable
  34-17  service.
  34-18        SECTION 4.03.  FEDERAL FUNDS; FOSTER CARE.  (a)  Article
  34-19  4413(503), Revised Statutes, is amended by adding Section 12A to
  34-20  read as follows:
  34-21        Sec. 12A.  FEDERAL FUNDING FOR CERTAIN CHILDREN.  (a)  For
  34-22  purposes of Medicaid eligibility only, the department shall
  34-23  classify as a "child in foster care" each child who is in the
  34-24  conservatorship of the state and placed in the home of a relative.
  34-25  A child classified as a "child in foster care" under this
  34-26  subsection is not automatically eligible to receive foster care
  34-27  payments because of that classification.
   35-1        (b)  The department shall ensure that each time study used to
   35-2  allocate costs identifies all costs incurred on behalf of a child
   35-3  if the child's case plan clearly indicates that foster care is the
   35-4  planned arrangement for that child.
   35-5        (c)  The department shall claim federal financial
   35-6  participation under Title IV-E, federal Social Security Act (42
   35-7  U.S.C.  Section 670 et seq.), for all nonrecurring adoption
   35-8  expenses at the highest rate authorized by federal law.  The
   35-9  department shall include all charges from state attorneys and state
  35-10  courts and any applicable overhead.  The department may claim the
  35-11  expenses as either administrative or training expenses, depending
  35-12  on which classification results in a higher federal match.
  35-13        (b)  The Department of Protective and Regulatory Services
  35-14  shall file an adjustment to its previous quarterly claims under
  35-15  Title IV-E, federal Social Security Act (42 U.S.C. Section 670 et
  35-16  seq.), to claim retroactive federal financial participation for the
  35-17  incremental difference for each quarter in which nonrecurring
  35-18  adoption expenses have been identified as a legitimate expense.
  35-19        (c)  The department shall request a waiver from the federal
  35-20  two-year limitation on the period in which the state can file
  35-21  certain claims in accordance with Section 1320b-2(b), federal
  35-22  Social Security Act (42 U.S.C. Section 1320b-2(b)).  If the waiver
  35-23  is denied, the department shall exhaust all administrative remedies
  35-24  and, if necessary, seek judicial review to obtain a court order
  35-25  reducing the claim to judgment and mandating retroactive payment.
  35-26           ARTICLE 5.  INTEGRATED ELIGIBILITY DETERMINATION
  35-27        SECTION 5.01.  INTEGRATED ELIGIBILITY DETERMINATION.  (a)
   36-1  Not later than September 1, 1996, the Health and Human Services
   36-2  Commission shall have completed the development and substantial
   36-3  implementation of a plan for an integrated eligibility
   36-4  determination and service delivery system for health and human
   36-5  services at the local and regional levels that does not reduce the
   36-6  state's total receipt of federal funds.  The plan shall specify the
   36-7  dates by which all elements of the plan must be implemented.
   36-8        (b)  The integrated eligibility determination and service
   36-9  delivery system shall be developed and implemented to achieve at
  36-10  least a one percent savings in the cost of providing administrative
  36-11  and other services and staff resulting from streamlining and
  36-12  eliminating duplication of services.  The commission shall use the
  36-13  resulting savings to further develop the integrated system and to
  36-14  provide other health and human services.
  36-15        (c)  The commission shall report savings resulting from
  36-16  implementation of the plan to local, state, and federal agencies.
  36-17        (d)  In consultation and coordination with the State Council
  36-18  on Competitive Government, the commission shall make and implement
  36-19  recommendations on services or functions of the integrated
  36-20  eligibility determination and service delivery system that could be
  36-21  provided more effectively through the use of competitive bidding or
  36-22  by contracting with local governments and other appropriate
  36-23  entities.  If the commission determines that private contracting
  36-24  may be effective, the commission may automate the determination of
  36-25  client eligibility by contracting with a private firm to conduct
  36-26  application processing.
  36-27        (e)  Not later than October 1, 1996, the commission shall
   37-1  develop a plan to consolidate administrative and service delivery
   37-2  functions in addition to the integrated eligibility determination
   37-3  and service delivery system in order to eliminate any remaining
   37-4  duplication.  The commission shall prepare a report of the plan for
   37-5  submission to the 75th Legislature when it convenes.
   37-6        SECTION 5.02.  OVERSIGHT GROUP.  A group composed of the
   37-7  following persons shall oversee the Health and Human Services
   37-8  Commission's development and implementation of the plan for an
   37-9  integrated eligibility determination and service delivery system:
  37-10              (1)  a representative from the governor's office,
  37-11  designated by the governor;
  37-12              (2)  a representative from the lieutenant governor's
  37-13  office, designated by the lieutenant governor;
  37-14              (3)  a representative from the office of the speaker of
  37-15  the house of representatives, designated by the speaker;
  37-16              (4)  a representative from the comptroller's office,
  37-17  designated by the comptroller; and
  37-18              (5)  a representative from the Legislative Budget
  37-19  Board, designated by the director of the Legislative Budget Board.
  37-20        SECTION 5.03.  STRATEGIC PLANS AND UPDATES.  Section 10(d),
  37-21  Article 4413(502), Revised Statutes, is amended to read as follows:
  37-22        (d)  All health and human services agencies shall submit
  37-23  strategic plans and biennial updates to the commission on a date to
  37-24  be determined by commission rule.  The strategic plans and biennial
  37-25  updates are subject to commission modification and approval.
  37-26        SECTION 5.04.  BUDGET CONSOLIDATION.  (a)  Section 13,
  37-27  Article 4413(502), Revised Statutes, is amended to read as follows:
   38-1        Sec. 13.  Consolidated Health and Human Services Budget.
   38-2  (a)  The commission has comprehensive budget and planning authority
   38-3  for health and human services agencies in order to establish an
   38-4  integrated eligibility determination and service delivery system.
   38-5        (b)  The commission shall prepare and submit to the
   38-6  Legislative Budget Board and the governor by October 15 of
   38-7  even-numbered years a consolidated health and human services budget
   38-8  recommendation.
   38-9        (c) <(b)>  The commission shall base the consolidated budget
  38-10  recommendation prepared under this article on priorities set in the
  38-11  commission's coordinated strategic plan for health and human
  38-12  services.
  38-13        (d) <(c)>  All health and human services agencies shall
  38-14  submit to the commission a biennial agency legislative
  38-15  appropriations request on a date to be determined by commission
  38-16  rule.
  38-17        (e)  A health and human services agency may not submit to the
  38-18  legislature or the governor its legislative appropriations request
  38-19  until the legislative appropriations request is approved by the
  38-20  commission.
  38-21        (f)  The commission may modify an agency legislative
  38-22  appropriations request as the commission determines necessary to
  38-23  provide the most efficient integrated eligibility determination and
  38-24  service delivery system possible.
  38-25        (b)  The changes in law made by this section apply to
  38-26  legislative appropriations requests made on or after September 1,
  38-27  1995.
   39-1        SECTION 5.05.  APPROPRIATIONS AND TRANSFERS.  (a)  Article
   39-2  4413(502), Revised Statutes, is amended by adding Sections 13A,
   39-3  13B, and 13C to read as follows:
   39-4        Sec. 13A.  APPROPRIATIONS AND TRANSFERS.  (a)  The
   39-5  legislature shall appropriate funds for the purposes of a health
   39-6  and human services agency to the commission.  The appropriated
   39-7  funds may be expended on vouchers approved by the appropriate
   39-8  officer of the health and human services agency pursuant to a
   39-9  budget approved for that purpose by the commission.  A health and
  39-10  human services agency may not modify its approved budget without
  39-11  commission approval.
  39-12        (b)  To the extent not inconsistent with federal or other
  39-13  state law, the commission may transfer or allocate appropriated
  39-14  funds among health and human services agencies and among programs
  39-15  of a health and human services agency as necessary to provide the
  39-16  most efficient integrated eligibility determination and service
  39-17  delivery system and to maximize the amount of federal funds for
  39-18  which the state may be eligible.
  39-19        Sec. 13B.  FEDERAL FUNDS.  (a)  Any operational or funding
  39-20  plan or modification to that plan prepared by a health and human
  39-21  services agency designated as the single state agency to administer
  39-22  federal funds is subject to commission approval.
  39-23        (b)  The commission shall evaluate the feasibility of
  39-24  designating the commission as the single state agency for federal
  39-25  funds received for a health and human services purpose.
  39-26        (c)  For the purpose of promoting integrated, community-based
  39-27  service delivery systems and to the extent permitted by federal
   40-1  law, the commission may consolidate federal funds to be given to
   40-2  local communities for the provision of health and human services.
   40-3        Sec. 13C.  AUTOMATED SYSTEMS.  (a)  Any appropriation made
   40-4  for the purpose of acquiring, developing, and implementing
   40-5  automation systems, including an automated system for integrated
   40-6  client eligibility determinations, shall be made to the commission
   40-7  for expenditure only by the commission and not by a health and
   40-8  human services agency.
   40-9        (b)  A health and human services agency may not submit its
  40-10  plans to the Department of Information Resources under Subchapter
  40-11  E, Chapter 2054, Government Code, until those plans are approved by
  40-12  the commission.
  40-13        (b)  The changes in law made by this section apply beginning
  40-14  with appropriations made for the fiscal year beginning September 1,
  40-15  1995.
  40-16        SECTION 5.06.  AGENCY STAFF.  Article 4413(502), Revised
  40-17  Statutes, is amended by adding Section 23 to read as follows:
  40-18        Sec. 23.  USE OF AGENCY STAFF.  To the extent requested by
  40-19  the commission, a health and human services agency shall assign
  40-20  existing staff to perform a function under this article.
  40-21        SECTION 5.07.  WORKLOAD STANDARDS AND EDUCATION.  (a)  Not
  40-22  later than February 1, 1996, the commission shall develop workload
  40-23  standards and educational requirements for the health and human
  40-24  services agency staff members that manage client eligibility
  40-25  determination and certification.  The workload standards shall
  40-26  address caseload, training, and other relevant factors and must be
  40-27  consistent with practices in the private sector.
   41-1        (b)  The educational requirements for the clerical staff who
   41-2  process applications under an automated system shall provide that a
   41-3  high school diploma or high school equivalency certificate is
   41-4  sufficient.  The commission shall phase out more qualified and
   41-5  higher-paid eligibility workers through worker attrition and
   41-6  replacement at an annual rate of not less than 20 percent.
   41-7        (c)  The commission shall examine cost-effective methods,
   41-8  including the use of more experienced caseworkers on a limited case
   41-9  review basis, to address:
  41-10              (1)  fraud in the assistance programs; and
  41-11              (2)  the error rate in eligibility determination.
  41-12        (d)  This section expires September 1, 1997.
  41-13        SECTION 5.08.  INTEGRATED SERVICE DELIVERY.  (a)  Not later
  41-14  than September 1, 1997, the commission shall develop, using
  41-15  existing state, local, and private resources, an integrated
  41-16  approach to the health and human service delivery system that
  41-17  includes a cost-effective one-stop or service center method of
  41-18  delivery to a client.  The commission shall determine the
  41-19  feasibility of using hospitals, schools, mental health and mental
  41-20  retardation centers, health clinics, commercial locations in malls,
  41-21  and other appropriate locations to achieve this integrated
  41-22  approach.
  41-23        (b)  The health and human services agencies shall cooperate
  41-24  with the commission in developing the integrated approach
  41-25  prescribed by Subsection (a) of this section.
  41-26        (c)  This section expires September 1, 1997.
  41-27        SECTION 5.09.  CO-LOCATION OF OFFICES.  Section 3.08, Chapter
   42-1  15, Acts of the 72nd Legislature, 1st Called Session, 1991 (Article
   42-2  4413(505), Vernon's Texas Civil Statutes), is amended to read as
   42-3  follows:
   42-4        Sec. 3.08.  LOCATION <CO-LOCATION> OF OFFICES AND FACILITIES.
   42-5  (a)  As leases on office space expire, the commission shall
   42-6  determine the needs for space and the location of health and human
   42-7  services agency offices to enable the commission to achieve a
   42-8  cost-effective one-stop or service center method of health and
   42-9  human service delivery.  <The administrative heads of the health
  42-10  and human service agencies shall review the agencies' current
  42-11  office and facility arrangements and study the feasibility of
  42-12  co-locating offices or facilities located in the same geographic
  42-13  area and shall report back to the commission not later than
  42-14  September 1, 1992.>
  42-15        (b)  <On receiving approval from the commission, the
  42-16  administrative heads of two or more health and human service
  42-17  agencies with offices or facilities located in the same geographic
  42-18  region shall co-locate the offices or facilities if the results of
  42-19  the study conducted under this section show that client access
  42-20  would be enhanced, the cost of co-location is not greater than the
  42-21  combined operating costs of the separate offices or facilities of
  42-22  those agencies, and the co-location would improve the efficiency of
  42-23  the delivery of services.>
  42-24        <(c)>  In this section, "health and human service agencies"
  42-25  includes the:
  42-26              (1)  Interagency Council on Early Childhood
  42-27  Intervention Services;
   43-1              (2)  Texas Department on Aging;
   43-2              (3)  Texas Commission on Alcohol and Drug Abuse;
   43-3              (4)  Texas Commission for the Blind;
   43-4              (5)  Texas Commission for the Deaf and Hearing
   43-5  Impaired;
   43-6              (6)  Texas Department of Health;
   43-7              (7)  Texas Department of Human Services;
   43-8              (8)  Texas Juvenile Probation Commission;
   43-9              (9)  Texas Department of Mental Health and Mental
  43-10  Retardation;
  43-11              (10)  Texas Rehabilitation Commission; and
  43-12              (11)  Department of Protective and Regulatory Services.
  43-13        SECTION 5.10.  LEASING OFFICE SPACE.  Section 6.031(a),
  43-14  Article 6, State Purchasing and General Services Act (Article 601b,
  43-15  Vernon's Texas Civil Statutes), is amended to read as follows:
  43-16        (a)  Notwithstanding any other provision of this article, the
  43-17  <The> commission may not lease office space to service the needs of
  43-18  any <a single> health and human service agency unless the Health
  43-19  and Human Services Commission has approved the office space for the
  43-20  agency <agency can provide the commission with a reason for not
  43-21  sharing the office space with one or more other health and human
  43-22  service agencies>.
  43-23        SECTION 5.11.  STREAMLINING MEDICAID ELIGIBILITY
  43-24  DETERMINATION.  (a)  The Health and Human Services Commission shall
  43-25  expand its existing integrated eligibility pilot programs relating
  43-26  to Medicaid eligibility to include the Harris County Hospital
  43-27  District and The University of Texas Medical Branch at Galveston.
   44-1        (b)  A contract with the Harris County Hospital District or
   44-2  The University of Texas Medical Branch at Galveston shall:
   44-3              (1)  specify performance-based measures to ensure error
   44-4  rates are kept within acceptable federal limits; and
   44-5              (2)  authorize the district and medical branch to
   44-6  simplify processes as much as possible and to use proprietary
   44-7  software.
   44-8        (c)  The Texas Department of Human Services shall:
   44-9              (1)  develop the ability to accept automated file
  44-10  information directly; and
  44-11              (2)  establish standards for other automated systems.
  44-12        (d)  The Health and Human Services Commission shall study the
  44-13  feasibility of enabling contractors or agencies other than the
  44-14  Texas Department of Human Services to provide or assist in the
  44-15  provision of client eligibility studies, determinations, and
  44-16  certifications.  In determining feasibility, the commission shall
  44-17  consider:
  44-18              (1)  error rates;
  44-19              (2)  the state's potential liability;
  44-20              (3)  expansion of the client population; and
  44-21              (4)  the federal single state agency restrictions.
  44-22        SECTION 5.12.  IMMUNIZATIONS FOR CHILDREN.  Section 31.031,
  44-23  Human Resources Code, is amended by adding Subsections (c), (d),
  44-24  and (e) to read as follows:
  44-25        (c)  The department shall require the applicant to provide
  44-26  proof to the department that each child for whom the applicant will
  44-27  receive assistance:
   45-1              (1)  has been immunized in accordance with Section
   45-2  161.004, Health and Safety Code;
   45-3              (2)  is currently receiving an immunization series in
   45-4  accordance with Section 161.004, Health and Safety Code, if the
   45-5  child is of sufficient age; or
   45-6              (3)  is exempted under Section 161.004(d), Health and
   45-7  Safety Code.
   45-8        (d)  An applicant who cannot provide the proof required by
   45-9  Subsection (c) at the time of application shall provide the proof
  45-10  not later than the 180th day after the date the department
  45-11  determines the applicant is eligible for financial assistance.
  45-12        (e)  The department by rule shall provide sanctions for a
  45-13  financial assistance recipient's failure to comply with Subsection
  45-14  (c) or (d).
  45-15             ARTICLE 6.  WAIVER; EFFECTIVE DATE; EMERGENCY
  45-16        SECTION 6.01.  WAIVER.  If before implementing a provision of
  45-17  this Act a state agency determines that a waiver or authorization
  45-18  from a federal agency is necessary for implementation, the agency
  45-19  shall request the waiver or authorization and may delay
  45-20  implementing that provision until the waiver or authorization is
  45-21  granted.
  45-22        SECTION 6.02.  EFFECTIVE DATE.  Except as otherwise provided
  45-23  by this Act, this Act takes effect September 1, 1995.
  45-24        SECTION 6.03.  EMERGENCY.  The importance of this legislation
  45-25  and the crowded condition of the calendars in both houses create an
  45-26  emergency and an imperative public necessity that the
  45-27  constitutional rule requiring bills to be read on three several
   46-1  days in each house be suspended, and this rule is hereby suspended.