Amend HB 1884 (Committee Printing, page 4, line 65) by
inserting new SECTIONS 11 through 15 as follows and renumbering the
subsequent sections accordingly:
      SECTION 11.  Section 31.0031(c), Human Resources Code, is
amended to read as follows:
      (c)  The department shall adopt rules governing sanctions and
penalties under this section to or for:
            (1)  a person who fails to comply with each applicable
requirement of the responsibility agreement prescribed by this
section; and
            (2)  the family of a person who fails to comply with
the requirement of the responsibility agreement prescribed by
Subsection (d)(1).
      SECTION 12.  Section 31.0032, Human Resources Code, is
amended to read as follows:
      Sec. 31.0032.  PENALTIES AND SANCTIONS.  (a)  If after an
investigation the department determines that a person is not
complying with a requirement of the responsibility agreement
required under Section 31.0031, the department shall apply
appropriate sanctions or penalties regarding the assistance
provided to or for that person or that person and the person's
family under this chapter.
      (b)  In applying sanctions or penalties for the failure or
refusal of a person, without good cause, to comply with the
requirement of the responsibility agreement prescribed by Section
31.0031(d)(1), the department shall:
            (1)  after the first violation, reduce the total amount
of financial assistance provided to or for the entire family by an
amount equal to the amount of financial assistance provided for the
needs of each adult member of the family who is not in compliance;
and
            (2)  after the second or a subsequent violation,
terminate the total amount of financial assistance provided to or
for that person and the person's family and deem the family
ineligible for financial assistance for a period of 90 days.
      (c)  Good cause for noncompliance with the requirement of the
responsibility agreement prescribed by Section 31.0031(d)(1) exists
only if requiring the person committing the violation to cooperate
with the department or agency under that section would be harmful
to the physical, mental, or emotional health of the person or the
person's child.
      (d)  The department shall apply a penalty or sanction to or
for a family under Subsection (b) until the person committing the
violation complies with each requirement of the responsibility
agreement for which the penalty or sanction was imposed.
      (e)  If a person fails to comply with a requirement of the
responsibility agreement prescribed by Section 31.0031(d)(1) for
more than 90 days after a penalty or sanction has been imposed, the
person will be deemed to have committed a second or subsequent
violation.
      (f)  The department shall immediately notify the caretaker
relative, second parent, or payee receiving the financial
assistance whether sanctions will be applied under this section.
      (g)  The department shall review the circumstances
surrounding the sanction to ensure that the sanction has been
applied appropriately within 13 days of providing the notice
required under subsection (f).  The department may offer referrals
to appropriate services to address and to help remove barriers to
compliance.
      (h) <(c)>  This section does not prohibit the department from
providing medical assistance, child care, or any other social or
support services for a person or that person's family <an>
<individual> subject to sanctions or penalties under this chapter.
      (i)  The department shall give the highest priority to the
administrative processing of sanctions or penalties applied under
this section so that the department's records of the affected
person promptly reflect application of the sanctions or penalties.
      SECTION 13.  Section 31.0033(c), Human Resources Code, is
amended to read as follows:
      (c)  If the department finds that good cause for
noncompliance was not shown at a hearing, the department shall
apply appropriate sanctions or penalties to or for that person or
that person and the person's family until the department determines
that the person is in compliance with the terms of the
responsibility agreement.
      SECTION 14.  Not later than December 1, 2000, the Office of
the Attorney General and the Texas Department of Human Services
shall jointly report to the governor, lieutenant governor, and
speaker of the house of representatives on the effectiveness and
accuracy of the sanctioning process described by Section 31.0032(b)
as added by this Act.  The report must include any recommendations
for legislative action.
      SECTION 15.  The changes in law made by Sections
31.0031-31.0033, Human Resources Code, as amended by this Act,
apply only to conduct that occurs on or after the effective date of
this Act.  Conduct that occurs before the effective date of this
Act is governed by the law in effect at the time the conduct
occurred, and that law is continued in effect for that purpose.