JKM S.B. 1114 75(R)BILL ANALYSIS ECONOMIC DEVELOPMENT S.B. 1114 By: Ellis (Coleman) 4-29-97 Committee Report (Amended) BACKGROUND Currently, the federal Personal Responsibility and Reconciliation Act of 1996 requires states to provide 20 hours of work activities for 25 percent of their public assistance recipients in fiscal year 1997; however, work participation requirements will increase five percent each year until 2002. In five years, states must have 50 percent of welfare recipients working at least 30 hours a week. In addition, recent research reveals that the growth of entry-level, service-sector jobs, those most likely to be filled by recipients of public assistance, is largely being created in suburban areas, making transportation a problem for poor urban-dwelling welfare recipients. S.B. 1114 requires the Texas Workforce Commission to establish a "wheels for work" pilot program, similar to the program developed in Maryland, designed to make donated cars available at low cost to certain recipients of public assistance in an effort to help those persons find and maintain employment PURPOSE As proposed, S.B. 1114 establishes a "wheels for work" pilot program to assist certain recipients of Aid to Families with Dependent Children. RULEMAKING AUTHORITY It is the committee's opinion that this bill does expressly grant additional rulemaking authority to the Texas Workforce Commission in SECTION 1 (a) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. PILOT PROGRAM. Requires the Texas Workforce Commission (commission), by rule, to develop a "wheels for work" pilot program in a county with a population of more than 2.8 million designed to make donated cars available at a low cost to certain persons who receive financial assistance under Chapter 31, Human Resources Code, to enable those persons to find and maintain employment. Requires the commission, in adopting these rules, to use the Maryland "wheels for work" initiative as a model; ensure that participation is limited to certain persons; ensure that a person who donates a car will receive a charitable donation receipt for federal income tax purposes; and set a timetable to complete the program. Requires the Texas Department of Human Services to provide certain information to the commission. SECTION 2. REPORT. Requires the commission to submit a report to the governor and the 77th Legislature concerning the program's effectiveness not later than January 15, 2001. SECTION 3. WAIVER. Sets forth the terms by which the commission or other state agency is required to request a waiver or authorization from a federal agency, and is authorized to delay implementing SECTION 1 of this Act until the waiver or authorization is granted. SECTION 4. EFFECTIVE DATE AND DEADLINES. (a) Effective date: September 1, 1997. (b) Requires the commission to establish the pilot program not later than January 1, 1998. SECTION 5. EXPIRATION DATE. Provides that this Act expires September 1, 2001. SECTION 6. EMERGENCY. Emergency clause. EXPLANATION OF AMENDMENTS AMENDMENT #1 Amends SECTION 1, PILOT PROGRAM, by striking the original Subsection (a) and inerting a new Subsection (a) requiring the Texas Workforce Commission to develop a pilot program by rule in four sites rather than in a county with a population of more than 2.8 million. Requires the commission to choose the sites with at least one site in an urban area and at least one site in a rural area.