By Hilderbran, et al.                                  H.B. No. 942

         Substitute the following for H.B. No. 942:

         By Naishtat                                        C.S.H.B. No. 942

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the AFDC and Medicaid benefits to children born to AFDC

 1-3     recipients.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter A, Chapter 31, Human Resources Code,

 1-6     is amended by adding Section 31.0036 to read as follows:

 1-7           Sec. 31.0036.  FINANCIAL ASSISTANCE FOR ADDITIONAL DEPENDENT

 1-8     CHILDREN.  (a)  The department may not provide financial assistance

 1-9     under this chapter for the support of a child born to a recipient

1-10     of the assistance at least 10 months after the date on which the

1-11     recipient initially began receiving the assistance if the paternity

1-12     of the dependent child has not been established for the purpose of

1-13     enforcing child support and if the recipient already has two or

1-14     more children.

1-15           (b)  Subsection (a) does not apply to a child born to a

1-16     recipient who reapplies for financial assistance after not

1-17     receiving the assistance for the 12 consecutive months preceding

1-18     the date of the reapplication.

1-19           (c)  If an adult recipient of financial assistance becomes

1-20     the parent of another child while the recipient is receiving the

1-21     assistance, the department, in computing the amount of the

1-22     financial assistance for the support of the family, shall:

1-23                 (1)  deduct the earned income disregards allowable

1-24     under federal law; and

 2-1                 (2)  increase the amount of the earned income disregard

 2-2     for an employed recipient in an amount that equals 50 percent of

 2-3     the amount granted under Section 31.003, adjusted for family size.

 2-4           (d)  Notwithstanding Subsection (a), the state shall provide

 2-5     to the latter-born child:

 2-6                 (1)  child care and other support services provided

 2-7     under this chapter to a dependent child; and

 2-8                 (2)  medical assistance under the state Medicaid

 2-9     program.

2-10           SECTION 2.  If before implementing Section 31.0036, Human

2-11     Resources, as added by this Act, the Texas Department of Human

2-12     Services determines that a waiver or authorization from a federal

2-13     agency is necessary for implementation of that provision, the

2-14     department shall request the waiver and may delay implementing that

2-15     provision until the waiver or authorization is granted.

2-16           SECTION 3.  This Act takes effect September 1, 1997, and

2-17     applies only to a child born on or after July 1, 1998, to a

2-18     recipient of financial assistance under Chapter 31, Human Resources

2-19     Code, who, on behalf of another child born to the recipient,

2-20     receives the assistance on or after the effective date of this Act,

2-21     regardless of the date on which eligibility for that assistance was

2-22     determined.

2-23           SECTION 4.  The importance of this legislation and the

2-24     crowded condition of the calendars in both houses create an

2-25     emergency and an imperative public necessity that the

2-26     constitutional rule requiring bills to be read on three several

2-27     days in each house be suspended, and this rule is hereby suspended.