BILL ANALYSIS HUMAN SERVICES C.S.H.B. 1909 By: Maxey 4-17-97 Committee Report (Substituted) BACKGROUND As Texas implements the welfare reform initiatives passed during the previous legislative session, the focus continues to be on efforts to move people off of welfare and to enable them to become more self-sufficient. One method of assisting self-sufficiency is through implementation of fill-the-gap budgeting. Fill-the-gap budgeting is a system of budgeting in which benefits are gradually lowered using a percentage of the difference between the standard of need and the countable income to calculate the grant benefit. Through the use of fill-the-gap budgeting, the individual is no longer penalized for finding employment by being immediately cut off from public assistance programs. Fill-the-gap budgeting was included on a limited scope as a part of the welfare reform efforts of the 74th Legislature. Expanding the program statewide will give all Texans yet another tool to help them to successfully become less reliant on assistance programs on a long term basis and to stop the cycle of moving off of and onto the welfare rolls. PURPOSE Subject to available state funds, this legislation directs DHS to implement a program of fill-thegap budgeting statewide. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Subchapter B, Chapter 31, Human Resources Code by adding Section 31.043, as follows: (a)Directs DHS to implement fill-the-gap budgeting or another form of earnings disregard statewide, subject to the availability of funds. (b)"Fill-the-gap budgeting" means gradually lowering benefits using a percentage of the difference between the standard of need and the countable income. SECTION 2.Amends Sections 7.06(c) and (e), Chapter 655, Acts of the 74th Legislature, Regular Session 1995, as follows: (c)Requires that reporting of the program's success be extended to the 77th Legislature. (e)Changes the expiration date of the program to September 1, 2001. SECTION 3.Directs DHS to revise the pilot program established in Section 7.06, Chapter 655, Acts of the 74th Legislature, Regular 1995, as necessary to implement the program (prescribed in Section 31.043) statewide. SECTION 4. Effective Date: September 1, 1997. SECTION 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE 1)In SECTION 1. Section 31.043, language was added that gives the Department of Human Services the flexibility to consider all possible ways to implement an earnings disregard program. 2)In SECTION 3, Subsection (2) was deleted to reflect that transitional benefits are not included in the fill-the-gap program.