1-1                                   AN ACT

 1-2     relating to the methods used to extend the period of supported

 1-3     employment for recipients of Temporary Assistance for Needy

 1-4     Families.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter B, Chapter 31, Human Resources Code,

 1-7     is amended by adding Section 31.043 to read as follows:

 1-8           Sec. 31.043.  FILL-THE-GAP BUDGETING.  (a)  To extend the

 1-9     period of supported employment for families who receive financial

1-10     assistance under this chapter, the department may use a form of

1-11     fill-the-gap budgeting or another method under which the department

1-12     disregards earnings of family members who obtain employment while

1-13     receiving the assistance.

1-14           (b)  The department may limit the percentage of earnings

1-15     disregarded, impose a time limit on how long the earnings are

1-16     disregarded, or gradually reduce the percentage of earnings

1-17     disregarded in order to remain within available funding.

1-18           (c)  Funding for earnings disregards may also come from

1-19     savings associated with sanctions related to noncompliance with the

1-20     personal responsibility agreement and work requirements in this

1-21     chapter, from savings resulting from caseload declines below

1-22     projections specified in the appropriations bill, and from

1-23     Temporary Assistance for Needy Families (TANF) block grant funds.

1-24           (d)  In this section, "fill-the-gap budgeting" means a system

 2-1     of budgeting in which benefits are gradually lowered using a

 2-2     percentage of the difference between the standard of need and the

 2-3     countable income to calculate the grant benefit.

 2-4           SECTION 2.  Sections 7.06(c) and (e), Chapter 655, Acts of

 2-5     the 74th Legislature, Regular Session, 1995, are amended to read as

 2-6     follows:

 2-7           (c)  The department shall report to the governor regarding

 2-8     the program's success in assisting families in becoming more

 2-9     self-sufficient.  The department shall notify members of the [75th

2-10     and] 76th and 77th legislatures and the standing committees of the

2-11     senate and house of representatives having primary jurisdiction

2-12     over the department of the filing of the report.

2-13           (e)  This section expires September 1, 2001 [1999].

2-14           SECTION 3.  The Texas Department of Human Services shall

2-15     revise the pilot program established by Section 7.06, Chapter 655,

2-16     Acts of the 74th Legislature, Regular Session, 1995, as necessary

2-17     to implement statewide the "fill-the-gap budgeting" program

2-18     prescribed by Section 31.043, Human Resources Code, as added by

2-19     this Act.

2-20           SECTION 4.  This Act takes effect September 1, 1997.

2-21           SECTION 5.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1909 was passed by the House on May

         10, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 1909 on May 23, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1909 was passed by the Senate, with

         amendments, on May 21, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor