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.